Call for Guest Authors

A reader or readers (Anonymous on October 26, 8:03 and 8:05PM) made a suggestion for guest authors. (Reference 1).

That's an excellent idea, and if anyone is interested, send me an email with your name and phone number, and a brief summary of your proposed post, or posts. After discussion, your posting will be under an "alter ego" of your choice. Send the email to me by clicking on the link below:

Send an email to Norm

Now before I get comments about possible censorship, etc. I want to clarify something. This is not an association blog; that is, it is not owned by the association. Unlike our newsletter, and other "official" association communications, which are the collective statement of our board,  this blog has been a personal endeavor. Therefore I have no responsibility or "fiduciary duty" to represent the unit owners in this blog. The fact that I do is a matter of choice, and of commitment.

It didn't have to be that way. Earlier this year, I offered in writing, to transfer this blog to the association. That offer was declined. Nor was there a counter offer from any member of the board, such as "we would prefer that you work on our website". So as someone has said "it is what it is".

This reminds me of a course on "Accomplishment" that I took some years ago. The question was asked "What are you committed to, Results or Reasons?" In that spirit, I am willing to open this blog up. However, I do have an objective for this blog and it is stated in the column to the right, entitled "WHAT THIS IS ABOUT AND HOW TO NAVIGATe."

Consider your purpose and if you want to participate and are interested in making a contribution to your fellow unit owners and to this association, then send me an email. However, unit ownership is NOT a requirement. 

Thank You!

Reference 1:  Comments to Post of October 26

The Newsletter Has Arrived!

Got my copy of the October/November newsletter today. Here are my initial observations.

The newsletter was further expanded and uses the same "upgraded" glossy paper. Photos are dark and I assume that this is because the original documents are being sent to the printer in color. Hint: conversion to "gray scale" and tweaking for contrast prior to submission would significantly improve the quality of the photos. Now that the "old" board has been removed, there are no longer any excuses about the newsletter, website, etc.

Did you notice that our CD is now our "Secretary, Recording Secretary and Communications Director?" I'll use the title "Communications Director" so as to provide continuity in this blog. For those who are interested, the "Secretary" is the named representative on legal documents for the association. According to the Society of Corporate Secretaries and Governance Professionals, the "Secretary" of a corporation has a "key responsibility to ensure the the board has the proper advice and resources for discharging its fiduciary duty under state law, and to ensure that the records of the Board's actions reflect that the Board has done so." Reference 5.

The newsletter stated that for the present we don't have a treasurer. However, as stated the board is planning to fill a vacant position, unless unit owners create a petition as specified in the newsletter.

The newsletter confirmed that our former Architectural Director "declined to fill the one-year term." Reference 1.

The new president made a statement encouraging unit owners to attend association meetings. The president stated that "the more engaged each homeowner is in the association's affairs, the better the board will be able to understand and address our community's needs." I underscore this. In a statement pertaining to the 2010 budget, the president stated that the board expects "there to be no increase to your 2010 assessment." That underscores the information and statements made by management at previous association meetings. So the new board concurs. That should make people happy, or not? There was no mention of the "reserve study". I am very interested in seeing the details of the study and the budget. But the study has been one of those "secrets" I guess.

The association website is coming "soon".  One of our unit owners has volunteered to do this. I am not certain if that is the same gentleman who was acknowledged during the annual meeting.

In the "Director Reports" our outgoing Architecture Director stated that driveway replacements were approved during the September association meeting for 1600T, 1601T, 1604T, 1706L, 1725L, 1733H and 1774G. I had written to management in the first week of October pertaining to the apparent delays to this work as well as to the roofing project at 1730-1732H.  My letter stated,  in part "...the board has authorized the driveway work and the roof...The Communications Director was the only board member who voted "NO" regarding the driveway repairs. However, it would be an inadequate excuse for the board to forego [sic] its responsibilities, and it would seem necessary for the board to act in compliance with the wishes of the vote." etc. I closed with the comment "I am very concerned about the current state of affairs at BLMH."

In the "Management Report" section of the newsletter, the statement was made that "There are several projects underway and scheduled for completion yet this year."  The newsletter went on to state that "The asphalt replacements and drainage improvements will be an ongoing project for the next several years until all of the driveways are completed." One aspect stood out. That was the statement that several projects are "scheduled" for completion this year. A careful observer will note that the languaging was "scheduled" and not "will". So perhaps we should keep our fingers crossed, and hope the work is completed. As a unit owner who gets a bill each and every month for the payment of my fees, I don't think our board and management would accept my statement that "I am "scheduled" to send you a payment each month." What is expected each and every month is that I "will" send my payment. For those who are about to quibble, the difference is significant and is one of "commitment".

I found it interesting that the new "Rules and Regulations" Director made the statement that "I suggest that instead of regarding our R&Rs as annoying restrictions, we think of them more as responsibilities that we share with our neighbors." Gee, I thought that is what the "old" board kept telling us. Now it was not only stated, but it was actually PRINTED in the newsletter. How did that get past the censor?

Pertaining to the "resetting of storm drains" you can see photos at Reference 2.

It was stated that the maintenance company will be "coming around in the next few weeks to break up the garage salt buckets and fill them for the beginning of the winter season." I thought that was performed by our snow removal contractor. But then, I am a relative "newbie", so perhaps I am mistaken. My building has a 50 gallon plastic container. Perhaps I am lucky and the rest of the unit owners have "buckets" in their garages. There is an explanation, of course. I have a large container because this is "another perk for the favored few." Oops, sorry for blowing it for the other three unit owners who share the garage. Perhaps we'll be demoted or whatever to a "bucket" this winter.

The newsletter stated that "Monthly assessments can be paid automatically". That's attractive, but would filling out a debit form also provide for "automatic" collection of fines, etc.? No explanation was given in the newsletter. I'd be unwilling to have fines automatically debited from my bank account. I'll explore this further with a letter to management.

The newsletter contained a reprint of the "Rights and Responsibilities for Better Communities" as made by the CAI, which is online at caionline.org. These are "Principles for Homeowners and Community Leaders."  There was no statement accompanying this document. On its website, the CAI states that "By encouraging community associations to adopt Rights and Responsibilities for Better Communities, CAI strives to promote harmony, community, responsible citizenship and effective leadership.

The CAI website makes the following recommendations for adopting the "Rights and Responsibilities":

"Adopting Rights and Responsibilities for Better Communities is easy!

• Download the Rights and Responsibilities document.
• Distribute the document throughout your community, announcing and publicizing where and when adoption will be considered.
• Explain why this is important to your community and the benefits it can create.
• Review and discuss the merits of the principles at an open meeting of your board.
• Solicit input from homeowners.
• Have your board vote to adopt a resolution endorsing Rights and Responsibilities for Better Communities. The principles will be more meaningful to homeowners and community leaders if they are formally adopted."

The newsletter does not indicate this is to be a process, with unit owner input. There are several possible explanations:

1. There is no intention for formal adoption at BLMH on the part of the board. The "R&R for BC" is merely a suggestion.
2. Our board intends to adopt the "R&R for BC" by decree.
3. Input is being solicited, but only from specific unit owners.
4. This will be posted as part of the agenda for the next association meeting, thereby continuing a bias in favor of unit owners living on the property.

I'll be providing more on the CAI "R&RforBC" in a later post. You are encouraged to go to the CAI website and review their statements about the use of this document and recommendations for boards, unit owners and professional managers. Reference 3.

The newsletter did not provide a statement about the oaths for our Board of Managers. It is unclear if the newly elected members of the board signed the oath. Reference 4.

The Communications Director provided a "Meet Your Neighbor" page and the following statement at the bottom of the page: "NOMINATIONS: If you'd like to nominate someone you know for the "Meet Your Neighbor" column, send the name and address of your nominee to: [our Communications Director] or email __________. Nominees will be contacted and asked if they wish to be interviewed." From this, am I to conclude that my earlier request to the "Communications Director" regarding the interview of current and former board members did not occur because they declined the interview? Or perhaps my request was simply ignored??? Nah, that wouldn't happen here, would it? I'll resubmit my nominations with addresses, but I won't be holding my breath.

In the "Meet Your Neighbor" interview for the month, the selected nominee stated that her personal motto is "What doesn't kill you makes you stronger".  Choosing to paraphrase Friedrich Wilhelm Nietzsche was interesting and I can only say, "you have come to the right association, lady."

The "red stuff on my shoes" article does "officially" answer the question brought up by a unit owner at an earlier association meeting.

No mention of the "vandalism" or recent theft brought up by a unit owner was made in the newsletter. If you want to be informed of some of these items, you will have to attend association meetings, or be fortunate to spot a piece in the local paper. Of course, you may also use one of the rumor mills in operation at BLMH, including the "official" and board member sponsored and "unofficial". However, in so doing you will possibly not get accurate information and you may also be spreading gossip. I appreciate that in the absence of published statements, unit owners have few choices.

Did you notice the statistics for unit owners who cast their votes? The statement is on page 1 in the second paragraph.   I'll state this "positively": 57.14% of the unit owners at BLMH aren't apathetical about their association, and did vote. The remaining 42.86% just don't give a hoot. Gee, and it was only a year ago that "a majority of us" were up in arms, according to the Communications Director. Amazing what a difference a year can make. Now nearly 40% are simply going about their daily business. I guess things aren't that bad here, are they? I state that because in my limited experience, most people go about their day to day business unless something personally significant intervenes in their lives.

The newsletter does not provide a current list of contractors. At several association meetings, unit owners have asked about "Ron's TV" which has left the downtown area. Their replacement is used for work on TV and coaxial cabling in units, maintaining the rooftop and in-attic antennas, etc. The new information for contacting "Ron's TV" was promised to be included in the newsletter. I suggest that unit owners contact the professional management for this information.

Sorry, but I've got to go. Despite what my critics say, I do have a full time job and I have spent the last 40+ years improving American industry, "committed to the elimination of all preventable industrial accidents in my lifetime", etc. Besides, I've got a  "quick banana bread" to remove from the oven. I prefer the recipes in a January 1967 version of the Rombauer-Becker "Joy of Cooking", you know, the version prior to the time they took butter out of the recipies and became "politically correct". So this bread was made with honest to goodness real "shortening". As we are approaching winter, I'll soon be making home-made cinnamon rolls. However, as I am currently working on a project about 650 miles distant, that may interfere with my baking schedule. Blogging however, can be accomplished from anywhere. From personal experience, I have been able to "carry on" from 7,000 miles away "as the crow flies."

Reference 1:   http://briarcliffelakes.blogspot.com/2009/09/post-election-2009.html
Reference 2:   http://briarcliffelakes.blogspot.com/2009/10/somebody-is-on-job.html
Reference 3:   http://www.caionline.org/info/help/Pages/RightsandResponsibilities.aspx
Reference 4:   http://briarcliffelakes.blogspot.com/2009/05/board-of-managers-part-2.html
Reference 5:   http://tinyurl.com/ygodh6n

Roofing Project Status - from Dawn 'til Dark

Here are a few photos of the project at 1730-1732H, but work was suspended this morning dew to rainfall.

The technique for removing existing roofing is to use a pitchfork or a square headed shovel. I prefer a sharpened shovel, myself, based upon personal experience. I once owned a home here in town, on which I upgraded the roof and I did remove the existing shingles. It was difficult work!

Stripping begins:

Down to the plywood:

Note the plywood panels being replaced:

Work suspended this morning due to rain:

More on Inflation

There has been an ongoing discussion among some unit owners about "inflation" and the effects on our association, and some interesting comments posted on this blog.

Here are several charts from the St. Louis Federal Reserve. These show the effects of inflation in the recent past, and how it increased the cost of goods and services. This information is from data provided by the U.S.Bureau of Labor Statistics, or BLS. Each month, the BLS surveys prices for certain products and then publishes the cost of those products as a number, called an "index".

What general information can I determine from the charts? If we use the "All" data, which includes food and energy, then since September of 1978 to September 2009, the CPI increased from 67.1 to 215.791. This is an average increase of 4.97% per year. However, the government ignores food and energy in making its "core" CPI calculations because of an argument that goes this way. "If food increases in price, then people will substitute hamburger for steak". In other words, if prices increase, I'll adjust the thermostat in my unit to expend less energy, drive my car less and eat cheaper alternatives, such as beans and rice. 

So what is the "CPI"?

According to the government, "The Consumer Price Indexes (CPI) program produces monthly data on changes in the prices paid by urban consumers for a representative basket of goods and services."

This "index" is defined as a "number used to measure change". The Consumer Price Index was 100 in 1984. Today it is 215.791.

This means that if the prices of goods in the basket was $1.00 in 1984, those same goods in the same basket would today cost $2.16. In the 15 years since 1984 the price of those goods has more than doubled. That is inflation. 

It is possible for prices to decrease. The chart shows that in mid 2006 the CPI fell. It did so again in late 2008. During those periods, the prices of certain goods decreased. That is deflation. 

This chart shows the change in price for the most recent five years for "all items" which included food and energy. We all know that gasoline increased dramatically in 2007, and has since moderated in price. The chart indicates this (Hint: click on the image to enlarge it, and then use the "back" or "return" button to return to this blog):

NOTE: In the above chart and also with the following charts, the "gray" areas are an "economic recession".

Here is a similar chart, but this one uses the BLS data excluding food and energy. If we ignore these, prices for most consumers didn't "spike":

Finally, here is a chart showing "All items less food and energy" since the 1950's. Note all of the "gray" areas, which are "economic recessions". No matter what the politicians tell us, they occur frequently:

And here is a similar chart showing "All Items" since the 1950's:

What can we learn from these? They can provide some guidance for future planning. I might not be able to determine how much a refrigerator will cost in the year 2015, but I can get some idea of the average price increases. I can then use those for determining how much I should be saving today to afford living in the future.


Of course, I could simply make the assumption that my income will increase by an amount sufficient to pay for the increases in goods and services due to inflation, but that might be dangerous. Or I can simply assume I'll spend less in the future. But that means that I'll have to sacrifice in the future. Question: Why should I assume that I'll be able to make financial sacrifices in the future, if I am unwilling or unable to make them today? 


For an association, the argument goes something like this. I want and expect manicured lawns, a secure roof over my head, paved streets and driveways "today". However, I may not be willing to save to provide for these things in the future. So unit owners may elect individuals to the board of managers in an attempt to forgo saving for the future. The plan is that "We'll do with less tomorrow". Of course, eventually "tomorrow" becomes "today". 


Does that sound familiar to anyone?


On October 21 I added Reference 4, which is a site which can be used to quickly determine the current inflation rate, the current CPI and also compare how inflation has changed our buying power. "The US Inflation Calculator measures the buying power of the dollar over time. To begin, just enter any two dates between 1913 and 2009, an amount, and click 'Calculate'."


Reference:
 1) St. Louis Federal Reserve CPI for Urban Consumers:  http://tinyurl.com/yf2fgzl
 2) Bureau of Labor Statistics: http://www.bls.gov/CPI/
 3) Shadow Government Statistics: http://www.shadowstats.com/
 4) US Inflation Calculator: http://www.usinflationcalculator.com/

For those who are interested, there are some strange methods in the CPI calculations, including geometric weighting and even something called "hedonics". It is my understanding that "Hedonics adjusts the prices of goods for the increased pleasure the consumer derives from them. That new washing machine you bought did not cost you 20% more than it would have cost you last year, because you got an offsetting 20% increase in the pleasure you derive from pushing its new electronic control buttons instead of turning that old noisy dial, according to the BLS. " (Reference 3)

Roofing Project at 1730-1732H is Underway

The roofing project approved at the most recent "open" board meeting began this morning. Seems somebody is on the job!

Hopefully, the weather will permit the seven driveways also approved for replacement this year and there will be no further delays to that project in 2009.

Where Does our Money Go?

The information is from the Consumer Expenditures Survey of the U.S. Department of Labor April 2009. It applies to the average consumer, who is 48.8 years old, is part of a family comprised of 2.5 people, has 1.3 wage earners and owns 1.9 motor vehicles. 67% of the consumers are homeowners.

You can use this to compare to your own expenditures:

Housing 34.1% = $16,920, split as

• 20.2% or $10,023 for shelter,
• 7.0% or $3,477 for utilities, fuels and public services,
• 2.0% or $984 for household operations,
• 1.3% for housekeeping supplies,
• 3.6% or $1,797 for household furnishings and equipment.

Transportation $8,758, split as

• 6.5% or $3,244 for vehicle purchase,
• 4.8% or $2,384 for gasoline and motor oil,
• 6.3% or $3,130 for other transportation expenses.

Food = $6,133, split as:

• 7.0% for Food at home $3,465 and
• 5.4% for Food away from home $2,668.

Pensions and social security tax = 10.1% or $5,027.
Healthcare = 5.7% or $2,853.
Entertainment 5.4% = $2,698.
Clothing apparel and services = 3.8% or $1,881.
Cash Contributions 3.7% = $1,821.
Education = 1.9% or $945.
Miscellaneous = 1.6% or $808.
Personal Care = 1.2% or $588.
Alcoholic beverages = 0.9% or $457.
Tobacco 0.7% or $323.
Life Insurance and other personal insurance = 0.6% or $309.
Reading 0.2% = $118.

Total spent = $49,638.


References:
1) U. S Dept. of Labor Consumer Expenditure Survey = http://www.bls.gov/cex/
2) Visual Economics "How the average U.S. consumer spends their paycheck?" http://tinyurl.com/nrsvvl