Summer Gasoline Price Increases

You may have noticed that gasoline prices have been increasing.  In December 2009, we were paying about $2.699 for a gallon of regular. Gasoline prices are expected to increase "slightly" this summer. According to the EIA (Ref. 1), gasoline will cost, on average, about 49 cents per gallon more this summer than it did last summer. Their information states that gasoline cost $2.35 a gallon in summer 2009 and is expected to cost $2.84 this summer. These are average prices, and our prices are higher.

The EIA uses April 1 through September 1 as the summer months. Here is a quotation from the report:

"The forecast has the annual average regular grade retail gasoline price increasing from $2.35 per gallon in 2009 to $2.84 in 2010 and to $2.96 in 2011, primarily because of projected rising crude oil prices. Average U.S. pump prices for regular gasoline are likely to exceed $3 per gallon at times during the driving season, and already exceed $3 per gallon in some areas."

Our gasoline prices are higher than the EIA average. Currently (6am today prices), the price of regular gasoline ranges from $2.999 to $3.109 per gallon.  In December 2009, we were paying about $2.699 for a gallon of regular. This was a reduction from June 2009 price of about $2.969 per gallon.

Here is a site which features gasoline prices in various zip codes. I have entered the zip 60187. I encourage all residents to purchase gasoline at stations located within our town borders. A portion of the taxes collected returns to the community to pay for our services:
Link to Gasoline Prices Zip 60187

Comments, Corrections, Omissions, References
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(Ref. 1)   Link to Energy Information Agency Short Term Outlook

2. This information is provided as an aid to those who are budgeting.

Would You Like a $10 Monthly Fee Reduction?

In my ongoing struggle to shift the conversation here at BLMH, I'm going to broach another subject.

Would you like to see a $10 monthly fee reduction? It is possible. However, it will require that our entire board change it's focus from Rule changes, garage and flea markets, coffees, expanded newsletters and so on, to something called "finances".

Some on the board, including our treasurer are already there. Others seem to be clueless.

What would it take to reverse the trend in escalating and increasing fees? What would it take to REDUCE fees?  Would that help to increase unit sales? So why aren't we looking at that?  It will take a lot more than talk; it will take action. We don't seem up to the task of real change.

Our new board members, and the one existing board member made a 'shoot from the hip' decision to hold fees constant this year. Unfortunately, this was not accompanied by an equal decision to hold the line on the budget. Simply publishing a budget which is a statement that "the budget for 2010 will be essentially identical to that of 2009" won't get the job done. As I recall, 2010's budget is based upon the published budget of 2009, not the ACTUAL expenditures. In other words, it wasn't based on the amounts actually spent in 2009!

How to reduce our fees by $10 a month? It's easy. Just cut expenditures by $40,000 this year. But to do that, the board will have to begin a serious discussion which goes beyond lip service about "scrutinizing" every bill - that was a campaign slogan in 2008. It will have to begin serious discussion about reducing expenditures. And ACTION. However, currently, those on the board who ran on "scrutinizing" have now shifted to "it's only a little bit of money." New items are proposed and discussed, but discussion of costs and impact on budget are avoided by saying things like "wouldn't this be good" and "it's only a little bit of money", etc. Supporters are readily available to make supporting statements to the board and to any unit owners who attend meetings. No one says "this will cost more" except our treasurer. Last year's treasurer objected to some of these conversations for the same reason, and stated so at association meetings.

Yes, talk is really cheap, especially when it is someone else's money.

Do we want to get serious about unit sales? Do we want to do something for all UNIT OWNERS here at BLMH?   Good luck, it will be necessary to get the ENTIRE board aligned and on track!

Instead, we now have people telling me that "wouldn't it be good if we had an on-site custodian?" etc. Seems somebody is committed to spending money here. The management tells me we are too small an association for a full time custodian. A unit owner who seems well connected, tells me that we, the association, could purchase a unit or pay the monthly fees of a custodian. Great. Let's reduce the income of the association by about $4,000 each year (that's the custodian's fees we won't collect) AND increase expenditures. Of course, we would have to pay "insurance" for the custodian, his Social Security, taxes, tools, etc. Or, should we just subsidize the business of some "out of work" contractor?  Yes, there is a lot of money here at BLMH, and I'm sure there are a lot of under- or un- employed handymen and contractors who would love to land the contact here at BLMH. Perhaps that was the idea behind all of the talk by new board members in 2008 about how we didn't need a professional maintenance company. We could do it with a few "handymen".

Where there is smoke, there is fire, it is said. Seems someone is planning the next "change" here at BLMH.

Comments, Corrections, Omissions, References
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1. We have large reserves. It seems that some money will be shifted from that to cover operating expenses. How can that be? The board added "coffee and donuts with the board" this year. We still have a glossy and larger newsletter. We have a new website. There was no vote to increase budgeting for these items, or above 2009 levels. In fact, our budget this year was voted to be EXACTLY as it was to be in 2009 as published in Fall 2008. So how can we spend more and yet not collect more? So where will the money come from?  The only possible method is taking it from reserves. I'm still waiting for the details of 2009's actual expenditures, in which some money was spent on landscaping, etc. as part of driveway and roofing (relocated downspouts), etc. I still have no idea exactly how much was spent in 2009. Some work performed in 2009 was possibly billed and paid for in 2010.

2. Our treasurer is an appointee who is experienced from previous boards. One board member ran in 2008 and was elected that year. All others are new for 2010 and have no prior HOA board experience. We have a new appointee who was voted and passed in April's meeting. The open discussion by the board stated he was an employed contractor. That statement also said he would be the Landscaping Director. On that basis the board voted unanimously to appoint. The new Landscaping Director made no statement nor addressed the unit owners who were present. So we can only trust that the statements made by those on the board who promoted him, which includes our CD, were factual in this matter.

3. I'm not proposing an "across the board" or declaration to reduce our fees by $10 per month. What I am proposing is:

• Evaluate all expenditures with the purpose of holding all current spending at or below ACTUAL spending in 2008.
• Eliminate board member "pet projects". Nothing is sacred, except critical services, roofing and driveway projects. If this association is not maintained then property values will decrease. 
• Do absolutely nothing to spend additional moneys.
• Create a true contingency fund.
• If this board can demonstrate the will to accomplish the above, then begin a serious undertaking to reduce expenditures and fees. 

Imitation is the Sincerest Form of Flattery

Our Association began an upgrade of decks a few years ago. I understand the design was created by our maintenance company, although members of the former board may also have been contributors. As is the case with all things at BLMH, there were a few unit owners who considered our new patio railings to be a waste of money.

However, the board has resisted caving and continues to upgrade to the new style with the current painting cycle.

Our new railings have been copied by a nearby association! Seems someone else sees the merit of the new design.   On the other hand, one of the features which distinguished us no longer does. Ahh, the problems of attempting to be unique. There are other ways, and I'm sure our board will attempt find them. Renters at association meetings? Flea markets this summer? Who knows what the future holds?

Comments in Norm's Mailbox

April 22, 2010:

I received an interesting email, which strayed into general observations, so I have abbreviated the comment:
"I think one of the main problems in society is that most people sit back and allow others to make decisions for themselves and.....allow others to do the "work" that is needed.......I think everyone should....listen and read what our [leadership is] saying, and stand up and protest and vote them out if need be..... but more importantly....I think more people should run.......and we need more [choices]......."

"What I see [is].....good people - smart people - too busy to run for office and then you have these stupid knuckle-heads that run for office that can barely spell and/or are very corrupt and then we (the people) sit around and say, "wow, did you hear what they're doing?" People mostly complain and do nothing in terms of action (like even voting)....."

How Would We Accomplish This?

The above question will be a regular feature on this blog. Topics will vary but the first one will be:

• How Would We Stimulate Unit Sales?

I recently visited a unit which was advertised "For Sale". The purpose of this post is not to comment on the price or amenities of the unit I visited. 

What I realized from that visit was that our association had no BLMH marketing or sales materials at the showing. A potential buyer isn't just purchasing a unit. They are purchasing a percentage ownership in a community. Would the nature of that community influence a purchase decision? Would the perspective of the board on maintenance and related issues also influence potential buyers? Individuals in a condominium have no direct control over maintenance of the common elements. We are all at the effect of the association.

As part of the recent financial and housing meltdown, there has been a lot of publicity in the printed press and other popular media about the pros and cons of ownership of real estate in general and that includes condominiums. There has been increased scrutiny. Many stories including implosions in specific markets such as Florida, problems in Chicago, articles or news bits about associations in dire straights or underfunded, home owners who are underwater, discussion of the price bottoming process "are we there yet?", concerns by sociologists, realtors, owners, etc. The consensus seems to be that owners are attempting to sell in a buyers market and at a time when there are many questions and concerns.

Would it be beneficial to all if our association; i.e. the board of managers, addressed this? Should the association get involved, or should we just sit back and hope it all turns out?

If I were to take the position that "something should be done" the first question is what? What would benefit all unit owners including those currently selling? How does an association present itself in this current situation?

The broader question is "how to sell an association."  If we assume this is a crowded marketplace, then it is very important to create a distinction. I'm not a marketing or sales person. However, any successful business person knows that to distinguish themselves from the competition, they must create a market or "niche". Would that include advertising, the building of relationships and networking? In the market, what are our advantages? What are our strengths? What are the opportunities that are present to unit owners who live here? How can we address the concerns of buyers? "Find out what is wanted and needed, and then provide that" I was once told.

We do have a communications department; that is, we have a Communications Director and a Committee. Certainly the unit owner and realtor can produce their own "sales brochure" for the unit, and in the case of the unit I surveyed, they had. I have a copy. But they can't speak for the association nor can they speak for the board of managers, which is our leadership and knows where we are going. What about the marketing of this association? Why don't we have a "sales brochure" for our association?  Would that be useful in promoting sales? Costs of such things are reasonable today and with our committee experts, we certainly have the tools. We supposedly have the people. What's missing?

The questions are:

1. Should BLMH have sales marketing materials?
2. What information would that include to facilitate or to stimulate sales?
3. How aggressive should the association be in this matter?
4. Should our Board prepare a "Mission Statement" for inclusion in this brochure or handout? If so, what would be included in that statement?
5. What other information should be included in the brochure? In these uncertain times, buyers are discriminating. What about the quality of our reserves? What about the current maintenance plans and programs? What about articulating a 10 year plan?
6. Are buyers interested in stability? Do they want information that will assure them that they are making a valid investment? Or, do we simply "hope" they will read all of the documents, prepare a questionnaire of their own and interview management (as I did before I purchased) and so on? I suggest that in the current market environment, buyers are less willing to take on risk. 
7. I have been told that at one time, there was a waiting list of people who wanted to purchase here. At that time there was no need to produce sales or marketing materials. Times and situations have changed. We have a board largely comprised of people who have expressed a commitment to change, or were nominated by one who does. So, how about some change that will facilitate sales without compromising any unit owners?
8. I'm sure we are all aware that our immediate vicinity offers unique lifestyle choices. Are the buyers equally aware? See Ref. (7).  We are located at the intersection of two remarkable communities. In our vicinity there are good schools, incredible shopping, a nearby community college with all sorts of inexpensive "adult education" courses, Wheaton College, an award winning Park System, a Forest Preserve system which is second to none, golf, hobbies, the Willowbrook Wildlife Center, the Morton Arboretum, more restaurants than one can possibly afford to visit, not one but two interesting and charming downtowns within about 3 miles, not one but two community libraries, lots of entertainment, including one of the earliest talking movie houses in the country (the nearby Tivoli was the second in the U.S. to have sound, opened in 1928, is a single screen theater which still provides an organ concert on Saturday night and upgraded wide screen 2D and 3D experience at reduced prices). There is also the neighboring Glen Art Theater See Ref. (7) . What more could someone want?  Perhaps something is missing? 
9. Critics of a marketing program or defeatists may say that there are so many homes and condo's in the immediate vicinity that have exactly what we do. That simply isn't true. Such a statement glosses over and ignores the amenities of the association. If my realtor told me that, I'd get a new one. Ref. (7). 
10. Should such a brochure or materials be made? If so, could it be made available to unit owners "at the cost" of printing?  I'm not suggesting another "freebie" for specific unit owners. Not when everyone is pinching pennies. But if a seller wants to do what is necessary, providing additional tools "at cost" would be acceptable, wouldn't it?
11. What else should be included in this brochure?
12. What else should be done?  I'm not suggesting spending fees on special amenities geared to a specific unit owner or owners. I'm not suggesting special plantings, new trees, or special or unusual alterations to make a building or a street more desirable, etc. Such specific improvements or expenses can be discussed by the board of managers during normal association meetings, if they are inclined to spend money to stimulate sales. I also suggest that if owners want special amenities, perhaps the individuals should pay for them, if they fall within general guidelines. For example, special planters and cement objects at building entrances. However, I would expect such discussion to be open and to include a much broader discussion of the entire issue.  Bottom line: I'm not calling for the expenditure of association funds here beyond immediate printing costs and those are to be reimbursed by the sellers. 
13. I also believe this warrants much more than a 5 minute discussion. I suggest this requires a plan.

As it is now, sellers allow the prospective buyer to "fill in the blanks". The prospective buyer, in the absence of information, can make up just about anything they desire about BLMH. For example: There were potholes on Lakecliffe See Ref. (7). last fall and while discussed, they were not repaired. Over the winter they spread and grew. They have now been repaired and our management, FUPM was instructed by the board during April's association meeting to look more closely into the cause of this problem. I believe the intention is to provide a better solution. That doesn't answer the question of why this association allowed Lakecliffe See Ref. (7) to get to that state. Is that significant to buyers? Well, I hate to be the bearer of bad tidings, but everyone who enters our community drives on that street, over the pot holes or into them.  That's six months of negative advertising.  Are there other examples that are visible when a buyer drives or walks the grounds?

Should our board of managers produce a Mission Statement and state clearly and succinctly what their priorities and commitments are? Would that help? Would that assist unit sales? Would such a statement be consistent with "fiduciary duties"? If it were decided to produce such a statement would that statement include our current practices and programs? Would it include our projected dates for these programs and projected solutions for any visible problems which could be a problem for a potential buyer, etc.?

Would such a Mission Statement go a long way to providing certainty for everyone, buyers and unit owners alike?  How about clearly defined statements about accumulating and spending reserves, about policy regarding special assessments, about where this association intends to be in 5 and 10 years, which is the length of our roofing and related projects?

I have gotten comments or have heard comments during association meetings from people who tell me they are unit owners and who have no interest in where this community will be in 5 years.  I assure you, each and every buyer is thinking about that future.

If this association is unwilling to express and articulate our commitments, then perhaps potential buyers and even some unit owners may conclude that we have no commitment, that we have no plan and that we may not know where we are going. It really makes no difference that some of us may know what we know i.e. members of the board of managers, that we have a plan, if we are unwilling to put it into writing and present it to potential buyers. Owners are permitted to attend association meetings. Interested buyers or visitors don't qualify. Even if they did, who is going to wait for the next association meeting to get answers to questions? What is more important? Initial impressions? Price? Performance?

In my personal situation, before purchasing, I wrote a long letter with a series of questions not answered in the governing documents, by-laws, financial data and other information I was given. This was mailed to the business manager and we discussed each item, point by point. I then drafted a reply confirming our entire conversation. That was instrumental in convincing me to purchase at BLMH. Why not prepare such a list with answers to present to potential buyers?

With human beings, there is always the temptation to think that "the grass is greener on the other side of the hill." Our competitors include newer associations and single unit homes. They also include "plain Jane" communities, converted apartments, etc. The benefits of BLMH include acres of green space, quality construction using cedar, brick and mortar. The construction methods can reduce unit owner energy expenditure. The roofing project started in 2009 included additional energy saving enhancements, and quality materials and methods which will result in increased appeal and longer roof life; that means a prospective buyer shouldn't have to brace themselves for a new roofing project until 2029 or so. Our buildings are constructed of real plywood, real wood beams and trusses and wooden 2 by 4's and so on.  We do not have some of the problems linked to newer construction; for example, the defective wallboard per the Consumer Product Safety Commission, etc.  Purchasing here is purchasing a quality, award winning product.

Sounds good, doesn't it?  But if we don't tell anyone, they'll never know. Some unit owners at BLMH may not be aware of this either. But prospective buyers have a different perspective. They are not familiar with our property. True, it would be comforting to say "we have just completed our roofing project". We can't; so that is where commitment and assurances come in. There is an expression "Nature abhors a vacuum", which I include to mean that if one doesn't create something to "fill the gap", that something being an expression of who we are, then we allow the potential buyer to decide what to put there. Which would you prefer? Make a commitment or take whatever shows up?  I suggest allowing buyers to make up whatever it is, isn't working very well for unit sales.

We live in very uncertain times. I would expect our board of managers realizes that and takes pro-active steps that are commensurate and are in step with the reality we live in.

We can't responsibly redo the property to comply with the wishes of buyers "I'd buy your unit if you faced the lake" or if "that tree wasn't obstructing the view of the waterfall" or "if you had an elevator" or, "if you had a new entry door". I certainly hope the board doesn't fall into that trap; i.e spending association fees to pursue buyers whims. To any buyers who are on the cusp but have a specific issue, as a seller I would say, "Make an offer and put your specific requirement as a contingency in the contract". The owner can then take that to the board for approval and discussion of whom pays for what.

But we can do some marketing and that benefits every seller and potentially all unit owners, at very reasonable cost. We do produce a color newsletter for 336 unit owners about 6 times a year (the even months) See Ref. (7). I've been told during association meetings that this is "only a little bit" of money.  So a marketing tool should be easy. Don't misunderstand me I'm not suggesting that we hire a marketing firm; I'm suggesting that our in-house experts on the Board do this.

I guarantee that if I were a seller, I'd be doing some really creative things that go well beyond the normal "dress up and hire a realtor" regimen; something that goes beyond cleaning, painting and adding a new counter top, etc. However, I also know I would not be selling my unit; I would be selling my association.  I would produce some of the documents I am proposing. But I can't do that alone and I can't speak for the board. They are as always, the group that must make the commitment.

I did my part by putting this out here. Let's see what the board does. I'll be sending a copy of this directly to them. Of course, if our board chooses not to act, then they are acquiescing the "high ground" to our competition. As I keep saying "it's all a choice". What choice will our board of managers make? You will know soon enough.

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References, Errors, Omissions, Comments:

1. I can't say if we have more or fewer units for sale than surrounding condos and the area in general. Our association does know price performance and similar metrics and has monitored this for all of the nearly 10 years I have been here. During the association meetings I have attended, there are brief conversations on this subject in the presence of unit owners. I have friends and associates who have homes for sale. I am aware of the unusual problems they have been experiencing.
2. The real estate agent was personable and gave me a nice hand out. I told the agent that I was familiar with the property and that I was obtaining information for a relative who was considering relocation to the area; my spouse and I are very interested in having them move here. In an earlier post, I put a little more info about that visit.  After the walk through, my spouse discussed the unit and what we had seen with our relative.  That relative has a buyer for their home and is very much "in action". It remains to be seen if they will come to Wheaton; they are reviewing all of the options. In their case, those options include "to relocate, or not to relocate."
3. Do we want potential buyers to "fill in the blanks" and make up something or do we want to guide them in this process and create something about this association? If the potential buyer comes to a wrong conclusion because of the limited information available to them, what are the consequences? If they decide we are "unworthy" the consequence is another lost sale. If they decide we are "worthy" we get a new owner. If they purchase with unrealistic expectations, they will become a dissatisfied unit owner. What are we attempting to create here?
4. If I were in the market to sell, I'd do everything I could to "look outside the 9 dots." I would also look at alternatives. 
5. Here's a "what if" game, Don't use my numbers as typical. They are examples only. What's the monthly mortgage payment on $190,000 with 10% down and 6.1%? It's $1,036 per month. A unit owner says "I can't sell because the buyer says my fees are too high." Really? So how could I offer a buyer a fee decrease? I could drop my selling price. But how much would be required? Let's see how great a decrease in principal would be required to accommodate a $25 reduction in the monthly mortgage payment. A $25 reduction in the monthly mortgage is $1,036 - $25 = $1,011 monthly mortgage payment. To achieve that, I would have to drop my selling price to $185,460. This calculation was made using the New York Times "Rent versus Buy" online calculator.  Would I do that? Could I do that? Would I be willing to drop my price 2.4% in order to sell? That's a question only the seller can answer. 
6. This post is another on my reoccurring and continuing theme which is really a perspective on setting priorities and an inquiry into the real duties and responsibilities of the board of managers. Would you consider what I am presenting here to be consistent with the "fiduciary duties" of the board? Would all unit owners benefit from this?  
7. Reference (7). I got a comment from an astute reader and made these corrections or expanded the information. Thanks for the feedback. After a conversation about this post, I also made a few changes, all noted by this reference. 

More on Roofing Project Review

This is a continuation of a multi-part post on the roofing project which formally commenced at this association in 2009.

There is another component of roofing. That is ventilation. The goal is to minimize attic temperatures as well as reduce moisture accumulation in the attic space, and minimize ice dams.

Here is an "before" picture of the ventilation system. This is typical of most of the roofs (Hint: clicking on the photo will enlarge it):

Here's another view of an "existing" roof and the ventilation system:

Here is a view of the "after" ventilation system on a new roof. This is one of the roofs upgraded in 2009:

Here is another "after" photo:

Something seems to be missing. That's because our new roofs include a "roof ridge vent". It isn't simply an appearance improvement. The new style roofs improve ventilation, reducing attic temperatures and moisture and extending the life of the roofs. This is accomplished by adding a  ridge line roof vent and by increasing the soffit vent area.

To make this work, the air inlets must also be increased. Proper ventilation requires that air inlet area = air discharge area. This is another example of your fees working for you. This was proposed, championed and accomplished by our former AD and voted and passed by the previous board of managers. The current board of managers is currently evaluating the roofing projects, its components and details and will again decide how to proceed. "The only constant is change" and projects are always under review. New boards must come up to speed.

Our new board seems to be continuing the process. We'll see what the new board decides.

Here is a photo of an unmodified air inlet, under a soffit. These inlets allow fresh air into the attic, which then allows hot air to be discharged through the roof vents. The quantity of soffit vents must be increased, and they must be inspected from inside and outside the roof to ensure that there is not blockage or restriction by interior insulation or paint. In the past, some of this work has been accomplished by our maintenance company, as instructed by the AD and the board.  The soffits can be modified during the exterior painting cycle. The roofing project is a large, multi-vendor project requiring coordination of several contractors and project management. This is a "before" photo of a single soffit air inlet vent:

My point here? This is where your fees go. This is where your money goes. This is one example of how maintenance was performed and your fees were stretched by using techniques to extend and reduce overall expenditures on maintenance and to anticipate and eliminate the potential causes of problems in the buildings.  These are complex projects which include many choices.

Some aspects of these improvements enhance appearance, which increases "desireability and saleablilty" and others enhance or improve hidden things such as potential life of the roofs, reduced energy consumption, improved ventilation and reduced attic moisture, etc.  Ultimately, this reduces monthly fees, owner energy expenditures and if problems are successfully avoided, may also avoid special assessments. There are compromises. The ridge vents reduce roof openings and maintenance issues such as painting of metal vents projecting through the roof, they also  reduce staining of the roofs. However, the ridge vents have shingles attached and can sometimes be the source of maintenance issues. Good material selection, proper installation techniques, strong warranties and so on are a necessity but do no occur automatically.

Here's a quick 1 minute video summary of the system and how it works. I had provided a 10 minute video to the previous AD, but this gets the point across, without diagrams, charts or any difficult to understand jargon or technical lingo:



Here's another brief video, which uses "smoke" to show how the vent works and to indicate how air flows into the soffits, through the attic and then out the roof vents. Cooler air is drawn into the soffit vents and then is discharged as heated and moist air through the roof vent:



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References, Errors, Omissions, Comments:


1. Here's part I of a multi-part review of the techniques and rationale of the roofing project which began in 2009. Roofing Project in Review - Post Part I

2. Did you know some of the bathroom vent fans exhaust into the attic space? Yes, indeed, they do. I don't know if this occurs in one building or in 42. I'm speaking from personal inspection. Of course, to do such an inspection, one has to crawl into the attic space. I have done so.


3. All photos are copyright 2010 as noted elsewhere on this blog and are to be copied only with permission.

BLMH Blog Mailbox

Here are excerpts from a few posts. These have passed my "filter". That filter includes my perspective on comments which are on topic, and adhere to the etiquette rules for the blog. For that reason I am including them here. I am also including these excerpts because these comments do "further the action" and contribute to the discussion, or provide some insights. Of course, these may or may not be BLMH residents.


Posted April 15, 2010:

• "Really Norm, "let's dance." You should know what that terminology means before you use it......"

My Response: "Let's Dance" is a disambiguous phrase which has several possible meanings, and therefore several different interpretations. Using such phrases are useful, because they provide me insight into the viewpoint, bias and perspective of those who comment on this blog.


Posted April 15, 2010:

• "......So you wasted taxpayers money by calling the police for a nail in the tire..Interesting, and do you think they would call you a liar. No, they will agree with you, that is what they are supposed to do....."

My Response: It would seem that the person who posted this comment has a very narrow viewpoint of what the Wheaton Police are supposed to do for residents. It seems it is their opinion that Police support is a waste of "taxpayer money" and the police always agree with callers. Our association encourages unit owners to report suspicious activity to the police.  This has been published in our "Manor Briefs" newsletter. 



Posted April 16, 2010:

• "I like the daffodils. I like the trimming of the grassy areas out front of the community. ......I also think the roofs need to be fixed. I am worried. Who can I go to see which roofs will be fixed and when they will be fixed? ......I had a friend in another community of condos where everyone got a one time fee of over $5,000 to fix the roofs because there wasn't enough money in the kitty....."

My Response:
Yes, the flowers are lovely. 


As for the roofs, our association has substantial reserves for replacement of roofs. The precise amount is published as part of the accounting and budget information provided to unit owners at the annual meeting. Our association reserves for roofing had a balance increase of greater than $150,000 for 12 month period ending October 31, 2008 (this public information is on our official BLMH.org website). Our roofs are aging. That means that their appearance is beginning to show it. There is some staining, which is not an indicator of imminent or pending failure. Staining may be caused by environmental factors, proximity of trees, organic debris, chimneys, rusty flashing, roof algae, etc. Or by inadequate under roof venting. Believe it or not, there are products which can be applied to shingles to remove some stains! Our former AD seemed satisfied with the condition of most of our roofs, which seem to be holding up well, and are performing their primary task of protecting us from the weather.  I'm looking for problems such as this, which I reported in 2009. Clicking will open a  New Window> 2009 Roofing Damage . The 2010 schedule of roofing replacement has not been announced; this has not yet been discussed by the board. It's my understanding that our roofs are currently inspected on an annual schedule; the AD is surveying our roofs with the assistance of a contractor or contractors. That is per his most recent architectural and maintenance report, presented during the April meeting. Time permitting, I'll be posting meeting highlights here, and that will include such announcements. However, I would expect that the roofs selected for 2010 will be announced at association meetings and published in our "Manor Briefs" newsletter. If you have specific concerns, I suggest you mail a note to management at FUPM and in the body of your letter; ask them to pass it to the Board of Managers, which should therefor be included in the packet the board receives each month. If you want a conversation about your concerns, come to the next association meeting and during the "homeowners forum" address the board with your questions or concerns.


I do appreciate your concern about "special assessments". However, at present I am not concerned, but I am watchful. Our treasurer has repeatedly stated he is opposed to special assessments, there has been no public discussion by the board or by last years' board about the possible need, anticipation or plans to implement a special assessment. During the April association meeting the Board passed a motion to discuss whether or not to proceed with a reserve study to supplement that provided by FUPM last year. A reserve study will provide additional insights into our financial condition. Until that time, I suggest you support and encourage board efforts to build our reserves, and accumulate funds for roofs. 


I assume your friend experienced a special assessment because 1) Reserves at her association were not adequate because of a lack of planning, or 2) An emergency occurred which exceeded the capacity of the reserves of your friend's association. You might find the following post, dated February 13, 2010 to be interesting. Clicking will open a  New Window>Why Special Assessments Are Not An Option In that post, I quoted Robert Nordlund, P.E. of Reserve Associates who said:  "In most cases, special assessments as an ongoing way of conducting business at an association should not even be an option. Governing Documents of most associations specifically require an "adequate" amount of Reserves to be set aside on an ongoing basis to offset anticipated Reserve expenses. Special assessments are designed as the solution for emergencies, not regular common area expenses."  

Posted April 16, 2010:

• "Why can't people focus on what needs to be done? I've read posted comments before about Norm. Are some people focusing on finger pointing or on what needs to get done?"

My Response: Good question. I think that what you are seeing here are differences of opinions about "what needs to be done". This is normal. I always consider the perspective of the person commenting. Most anonymous comments don't state that, but a few do.  As I have said several times, we all have a personal bias. Anyone who is currently selling a unit probably has only one focus and that is to sell their unit. If they were forthright they would probably admit that they will oppose anything which they think would interfere with their sale. It does point to the problem if our Board of Managers attempts to operate in accordance with the perceived will of the majority, or move this association in the direction advocated by those "squeaky wheels", which is to say, to move in accordance with those few of us who show up at association meetings and voice our complaints.  However, if you are addressing the general complaints and comments like "we like Norm", "we don't like Norm" or "I think I have a hygiene problem", I agree. Those opinions are irrelevant. That is one of the reasons I now moderate the comments. To keep those comment "on track". 


Posted April 16, 2010:

• Norm, take heart. You sound a little beaten down in your latest posting........I almost never comment on your blog at all, but I try to take the time to read each posting. I agree with most, disagree with some. But trust me...there are many of us out here that read this thing and nod our heads in agreement. Keep up the good work. Most of us appreciate it. And if we didn't have you around, we'd only be left with half the story."

My Response: Thank you for your kind comments. I sometimes have difficulty separating the "wheat from the chaff" when I see volleys of comments. Your post helps. Without comments, I have no idea if I am "in my head" or in the real world, and I am therefor just doing finger exercises which are wearing out this keyboard.  I do really believe this is a unique property. I think those on our boards who spent 30 years getting us to where we are today are to be commended. Some things work and financially, we nearly lost it about 20 years ago. But in 1998 we began our recovery.  I intend to support our current and future boards in "staying the course" and in so doing, get us through the future years. This association has another good 50 to 70 years ahead. Longer if we continue for each of those years to choose to make the proper decisions and if the unit owners today. next year and each year thereafter choose to continue on this path. I think as time progresses, the unique benefits of this association may become very, very apparent.  There are architects and city and community planners who are again promoting the advantages of "higher density" housing. We have the best of all worlds; "Manor Homes", low density and lots of green space. I don't want this "step change" or "reset" in our economy to do us in "psychologically speaking". We are way ahead in energy efficiency, ambiance, green space and many other metrics. We could do more if we began to think about it and discuss it. But to do so will take some leadership and the will to look beyond what some perceive as "survival". I routinely talk to home owners in the greater Chicago area who have similar square footage and they are shocked when I give them my monthly energy and utility costs. I am paying 1/3 of what they are; in some cases, on a square footage basis, even less. My utility bills plus monthly fees are about what they pay for utilities alone, and they have to do all of their own maintenance and exterior repairs. They have difficulty believing it, so I direct them to some of the info I have put here. I would like to shift many of the internal conversations at BLMH. With respect to fees, I am going to emphasize my perspective on "total cost of ownership". 

Posted April 15, 2010. I'm including this because it asks a technical question, the answer to which may be of interest to those who wonder how it is that these posts appear when they do:

• "Interesting post........What kind of job do you have to where you can make a blog post on a Thursday morning and where can I sign up?"

My Response: I create most of these posts in the evening, but sometimes in the wee hours or very early in the morning. They are stored and are ready for posting at some future time and/or date. Currently I have ten such posts "stored" and ready for posting, including this one. I use two means of actually posting, or putting these "out there" in the "blogosphere". The first is to schedule an automated posting at some time in the future. The post will appear at the appointed date and time with no further action on my part. I have scheduled this post for publishing at 11:42PM this evening.  The second method is to go to my blog and manually publish the selected post. I sometimes do that. Including "log on" time, it takes about 45 seconds. I can do this during scheduled breaks, lunch, or whatever. I sometimes go back after a posting and notice something ambiguous or a typo and if I can, I'll fix it, or save a draft copy and as soon as practical, publish the edited post. As to what my normal hours are, since about 1981 I have designed all of my businesses to include "flex time". As long as certain hours each day are covered by all employees, so that work and communications is coordinated, employees have been allowed to choose the time of their arrival and departure. There are a few restrictions, but in the past, some employees chose to start their work day at 6:00am, others ended theirs at 7:00pm.  There are other possible approaches. I have a client who shifts their normal department hours during the summer months. During the summer, their normal "work" day begins 6:00am. This permits all employees of that department to leave for the day at 3:00pm.  What is "normal" is really a result of one's perspective of what is possible.  Here at BLMH I see both opportunity and possibility!

Roofing Project in Review

Here is the "new"

Here is the "old"

Last year, this association began it's multi-year upgrade and replacement of roofs. Two roofs were completed last year. Astute readers may say "Haven't we completed three roofs?" and you are correct. However that initial roof replacement, while required,  was classified to be an experiment by the former AD. His explanation: get out the bugs before committing association funds to a multi-year replacement program. Advantage: don't create many problems; sometimes things don't always go as planned and a phased and gradual implementation permits time to study the consequences of each modification and make "mid course" corrections.

Now, after 10 years of building reserves for the project that formally began last year, this association is ready to continue. It will take perhaps 8 to 10 years to do all of the roofs. Even such a schedule is very ambitions. There are 39 remaining roofs. That's at least 4 roofs per year. Exactly how many each year cannot be predicted. The past policy as stated by the former AD was to inspect the roofs each year and rate the condition. On that basis, selection would be made. A goal: don't replace a roof any earlier than necessary; to do so wastes capital. Of course, to do a roof any later than necessary can result in leaks and expensive repairs.

Will the project continue the alterations to downspouts and water runoff? Stay tuned. These should be included in the discussions held by the board as part of upcoming association meetings.

I suggest the reader take the time to read the notes at the end of this post.

Why is Timing of Replacement Important
Here's an explanation of why timing is financially important. Let's say a roof has a value of $40,000 and a roof has a life of 20 years. These are numbers for example only. I am not revealing the cost of the roofs here and the actual lifespan is determined by the quality of the shingle, its design and the design of the roof, and the materials used. The cost of the roof for each year is:

$40,000/20 years = $2,000.00

However, let's say we decide to replace a roof after 18 years of service. The cost of that roof for each of the 18 years was:

$40,000/18 years = $2,222.22

If we replaced the roof after 19 years, or one year earlier than its anticipated life, the cost per year was

$40,000/19 years = $2,105.26

These numbers accumulate, because we have 42 roofs to replace. If we replace each roof two years earlier than necessary, the costs are about $222 greater for each. It's as if we simply paid more for the roof. In real terms, delaying the replacement of a roof by two years to a full 20 years can save $222. Of course, the actual life span is determined by the quality of materials, workmanship and the actual condition of the roof. If we do replace all of the roofs two years earlier than the expected life of 20 years, then the extra cost per year is:

$222 x 42 = $9,324 addition that is spent due to early replacement. This is money that must be collected as fees and saved as reserves.

How much is this per unit owner?

$9,324 / 336 =  $27.75, which is not a great deal of money, but is about 2 months of a 5% fee increase, or about 4-1/2 months of a 2% fee increase.

The numbers get even more interesting when compared over the life of a building. Let's assume each building has a possible life of 100 years. If we assume a roof lasts a certain number of years, how many roofs will we put on a building in its lifetime? Let's use roof lifes of 15,16, 17, 18, 19 and 20 years. The total costs of putting roofs on the buildings, using constant dollars of $40,000 per building for each roof installed,  is:

15 years = 6.67 re-roofs =  $266,666.67 per building
16 years = 6.25 re-roofs  =  $250,000.00 per building
17 years = 5.88 re-roofs =  $235,294.12 per building
18 years = 5.56 re-roofs = $222,222.22 per building
19 years = 5.26 re-roofs = $210,526.32 per building
20 years = 5.00 re-roofs = $200,000.00 per building

From the above, we can see that the difference, if we can keep a roof for a full 20 years, as opposed to replacing it each 19 years, is $10,526.32.  However, this association has 42 roofs. So the true cost to the association is 42 times greater, or $442,105.26!

So, keeping the roofs for a full 20 year lifespan instead of 19 years will save the association slightly over $442,000 over the possible life of this association! Now you see the value of those longer warranties, the use of better materials, and you can see the value in careful observation and good judgement when making the decision to replace a roof. Scheduling a roof even one year too early really spends a great deal of money. I guess I would say that this is the hidden price of poor judgement or poor installation or cheap materials. Or perhaps a combination of all three. Of course, weather also plays a part. Hail has been known to damage roofs. Sometimes the damage is visible and is repaired by insurance. Sometimes the roof is weakened or slightly damaged and goes unnoticed.

If the association chooses better materials, then the life of roofs can be extended from a normal 15 years to perhaps the full 20 years. The differences, as you can see above, are significant.  A true cost analysis will consider the difference in cost of the various approaches, the initial costs, the savings over the projected life of the roof and if the benefits are worth the expenditure. On balance, we can install the cheapest possible roofs or, we can install architectural grade shingles with longer projected life spans and higher initial cost. In evaluations, it is useful to consider that the cost of materials is the large variable. The cost of labor, and its overhead, insurance and profit component is relatively steady for most asphalt shingle types.

How to Assure Achievement of Maximum Roof Life
There are technical things and I've written about those elsewhere. Good interior ventilation reduces internal roof temperature and extends the life of the roof, etc. Inspection also plays a part. So, the only way to do this is to make annual inspections and appraisals of each and every roof at BLMH. Then, a decision must be made to repair or replace any roof that has a problems. As I recall, the former AD used about $1200 as the threshold amount. However, there were other considerations.

Evaluation and Selection Criteria included, but was not limited to:

1. Overall condition of the roof.
2. Age of the Roof.
3. Cost of repairs if necessary.
4. Status of this roof as compared to any others on the "watch" list.
5. Fund available in reserves

==================================
References, Errors, Omissions, Comments:


1. I'm cataloging roofs in an attempt to get a better idea of where this association stands. I'll provide my findings to the board and I'll probably publish some of the info here.

2. There was considerable discussion in 2008 and 2009 among the board about the details of the roofing project. I reviewed the specifications and provided my comments to the former AD. I can't predict what changes may occur this year.  A new board and a new AD. Certainly, some of the fundamentals will remain intact. Details and options are subject to review and revision.

3. There are 42 buildings, and 84 entrances; two entrances per building. I sometimes think of our building as being two, but they are actually one with firewall separating the two "mirror image" halfs.

4. In this post I looked at straightforward replacement cost and lifetime cost. There are additional analysis possible. I have simplified this and used "constant dollars" which means, I haven't included inflation which is normally in the range of 3 to 5%. So, this post assumes that a roof installed in 2010 can be replaced for the same amount in 2030. In other words, the savings rate and the interest earned on that savings is at exactly the same rate as the increase in cost of materials and labor. However, as you are aware, your saving at present earn about 0.25% and yet inflation is about 2.25% (using CPI-U). If this disparity continues over long periods, the value of the savings erodes and cannot keep up with the cost of goods and services. So, there is some simplification here.

These types of comparisons are useful when determining the value of warranties, different materials and installation approaches, etc. I have been doing various types of numerical analysis for decades. This is the type of work required by my profession. I am also very familiar with different types of analysis and comparison of data. All in a days work as they say.

5. If the goal of this association is to keep fees today as low as possible, then the only solution is to use the cheapest methods and materials that are available. However, if the goal is to achieve the lowest possible fees, which is a compromise between todays needs and requirements and those of the future, then an analysis must be made of different approaches in materials and methods, and their costs and benefits. Roofing protects the structure and also contributes to energy use. If one considers the "total cost of ownership" then energy savings are passed to unit owners. So too are any energy credits and so on. If a unit owner can be given an energy credit, that is a form of  "reverse assessment" in which the unit owner is given a reimbursement for association expenditures. Such a reimbursement should be considered to be the lowering of the monthly fees. So too would any energy savings. Reducing the "heat load" on the building and/or increasing insulation properties reduces unit owner energy costs and makes it possible to install smaller HVAC furnace and air conditioning systems. That is also a savings to the unit owner. There is a reason my energy costs are very low. I have an older roof. This was achieved in part by the additional insulation placed in the attic (by the owner). Improved air flow would lower the energy costs further by decreasing the attic temperature. I pay the energy bill of a fan installed in the roof by the association which provides a small improvement but is not equivelant to the passive ventilation systems installed as part of the two roofs last year.

6. I posted some additional data on April 17, and re-arranged some of this for better flow.

Some Changes may be for the Better

I posted the previous in response and as a reaction to the volley that occurred on April 11. I have reluctantly concluded that "free speech" is something that needs to be moderated. That aspect of this experiment has failed.  I had resisted moderation, in part because of criticisms posted about inhibiting comments.

I do want to encourage a healthy dialog and I have been and will continue to be very generous in my interpretation of what that might be. I also have no problem with anonymous comments. However, on October 3, 2009 I posted rules about etiquette and I have tried several means to defuse some of the volleys.

I'm not present here 24/7 and I have decided I do not want to be a reaction. Nor can I be diverted into damage control. Contrary to some opinions posted here, I actually do have a job, and that does interfere with this blog, and my other responsibilities. Or is it the other way around?  Whichever it is, I prefer to manage and that is exactly what this change is intended to accomplish.

I apologize, but as of today, all comments will be moderated on this blog. That means they will be delayed until I have had the opportunity to review them. If they adhere to the etiquette posted on the link at the end of this post, then they will be accepted. Comments that are rejected will be completely rejected; I can't edit your comments for content. If I cannot accept a comment I'll post a note advising readers that a comment or comments were rejected. You will all be made aware of my efforts at moderation. The delay in posting will possibly be an entire day, but may be shorter or longer. I cannot promise or predict the rapidity with which I will review and post.

I have also deleted some of the earlier comments which would not have passed the "etiquette" filter.

I realize that there are those who really believe that I do and have edited all criticisms. That's false. For a time, I delayed deletions. All comments were posted and were visible for at least a day. But someone took advantage of that and began a campaign which I assume was intended to drive people away. The comments certainly had nothing to do about this association, condominiums, communities or any other rational and related topics. At that point, I began deleting the most tasteless of such posts.

I [won't] verify who the "anonymous" posters are or if they have anything at stake here at BLMH. So if I have any questions or concerns when you submit a comment, it is possible I will err on the side of conservatism. If you truly want your comments posted, then think about posting something that will further the action, or may enhance our community and adheres to the rules of etiquette. Certainly advice, information, suggestions are all welcome. I'm not asking anyone to put a spin on what they say. I don't mind criticism and complaints if they are delivered responsibly are also OK. If I was interested in popularity I'd be offering coffee and doughnuts or pretzels and beer.

I also suggest that if you have specific issues then be specific in your comments. That works both ways. If you like it here at BLMH and want to comment, please state why. If you don't like it here, please state what you like as well as what you don't. If you want to vent, well, go ahead and be my guest. We all lose it from time to time.

If you are unsure about the quality of your comments, you can submit several different versions. Let me know what you are doing and I'll pick the one that fits. Or, if all are responsible and pass the etiquette filter, I'll pass them all to the readers.

Of course, if you don't like this site, then don't come here.

I will continue to permit anyone and everyone to submit comments, Anonymous or otherwise. However, I'll be monitoring all comments before they are posted. I solely will choose to accept or reject them.

Thank you for all of your comments, good, bad or otherwise!

Click here for posted rules of etiquette

==============
Quote of the Day:

In a democratic society “the real power lies in the majority of the community" - James Madison, Fourth President of the United States.

According to the Wheaton Police, this was one of several Malicious Acts

This post is for the purpose of enlightenment. It is in two parts.

Part I You want to "call me on this", i.e., the "nails in the tires"? OK, then let's dance.

There were several police reports filed, after it became apparent these incidences were not accidents. Question: If you, as I do, check your tires each and every evening, and then each and every morning, recheck them, and find that a nail has miraculously sprouted from the side of your tire in the wee hours, would you classify that as an accident?  It's my understanding some would!  The Wheaton police, upon inspecting the evidence, don't agree with your analysis. I suppose there are those whose opinion would be "what do they know?" The police are trained professionals, but even so, are "idiots and morons" just as you assume me to be? Those individuals have posted here and they say the only credible possibility is "I did it to myself".

The Wheaton police, after inspecting the vehicle, classified the above example as a "malicious act of vandalism". I was eventually granted an "audience" with our board. (See the link at the end of this post for details and a photo).

How many times did this occur and how many nails did I collect? I made a statement to the board in "executive session". That is privileged information and as I see it, you are not entitled or privileged to know it, no matter what your sense of self-worth may be. (end of Part I).

• Comment added. I consider the "nails in the tires" episodes to be complete and over. The above statement is it. This is the last time I will reference this series of events on this blog. A photo and additional info is on the link at the end of this post. This situation was referenced recently in our "official" newsletter. I'm sure you all read that newsletter, didn't you?  If you need verification I suggest you ask our board president. 
• Moving on. This association has a lot of work to do this year and I intend to again support it in getting those things completed that need to be done. I have met several times with the AD but I may not be able to provide direct assistance. On the other hand, he may not want it. You will note that the board is anticipating a very ambitious maintenance program this year. See my post of April 13. I have stated  that 2010 will not be a repeat of 2009 and that is my intention.  As for the following Part 2, I will continue to monitor and promote a healthy association. I am going to do so in as pro-active a manner as is possible. One of the things I have learned from the events of the most recent 5 years is not to take things for granted. To put it in another perspective, "change" is not always a good thing. I don't know of anyone who has enjoyed the past two years because of the economy and the economic uncertainty.  I recently concluded that for this blog I had three options: 1) make no changes, 2) shut the blog down, 3) permit moderated comments 4) permit no comments. I decided to keep this running but move to moderated comments. In that manner, I can support responsible communications and I will not feel compelled to respond to goads which, when I don't respond, evolve into criticisms about "what's the matter - no answer?" and so on. If you want a dialog with me then come to association meetings. Failing that, send me an email. I intend to focus on architecture, finance and broader economic issues and provide some balance. I don't intend to gloss over the problems, nor do I intend to amplify them. With the arrival of spring, cleanup has begun and there are all sorts of preparations underway in the streams and grounds. I anticipate that I will be able to devote more time to getting photos and other updates onto the blog. I have been disappointed at the level of vitriol that surfaces from time to time.  In the past year there are broader issues which have been foreshadowed by the discussions about parties, renters, rules changes and enforcement and so on. Rules must be enforced. A moderated blog is a compromise. I am very, very clear there are some unit owners who don't like the fees. I am also very clear that there are unit owners who are very pleased with our level of reserves. No one is happy with the current situation in real estate except perhaps the buyers. I have been here about 10 years. In that time all of the boards have been mindful of unit sales. I see this board as no different. What is different is the market and our board can do nothing about that. I have encouraged a relative who has been considering a relocation, to move here and to that end I attended a BLMH open house last week to collect information for them. I suggest other unit owners consider taking similar action. I have no idea what will work, i.e. achieve the results that sellers expect. I think our condos give great value. I also think some of the unit owners miss a valuable point. We get an extra-ordinary value from living here. This is a unique community. I am discouraged that some unit owners compare us to other associations which are very dissimilar.  We do have 40 acres, two lakes and streams, etc. This is not a high rise facility nor is it a plain-Jane association. I'd like to see that kept in view. I do see proper and continued maintenance as a necessity.  Finally, I am discouraged by board members who don't take on unit owners. Just say NO. It is impossible to cater to each and every one of us and it is impossible that all of us will be happy with any single board action. Yes I understand that applies to me. Here is my request.  If the board keeps its agreements, I won't call them on it. If the board articulates its policies and adheres to the governing documents, I won't object. Provide me and my fellow unit owners with cohesive details rather than "better", "good", "nicer" or any other indistinct terms which are used too often. Finally, don't compromise one group for another. Compromise is the operative word in diverse organizations. But being compromised is not. I'd like to see preparation and discussion of all sides of an issue including costs and benefits both pro and con. I'm not aware of any unit owners who are opposed to thorough discussion in general. Some discussions are more charged than others. Fees is a great example. The board cannot avoid it. The only discussion that might meet with broad approval is a debate which begins with "everything is perfect" and then ends with "we aren't changing anything". But reality won't permit that. We dealing with "change" here. It's manifested in new owners, ongoing maintenance and improvements and occasional breakdowns. Please do not introduce more change than is necessary to accomplish the association goals. Perhaps that would be a good barometer for considering board discussions. "Is this a priority" and "if so, why" and finally "what is being displaced by this discussion". I know I sound like a broken record but we have finite resources. That includes time available to the board our managers and our maintenance contractors. And we have finite financial resources. And we have no desire to increase fees. So it would seem that the line must be held. Or am I incorrect? 

Part 2: I have taken this stand, and this  is where I am coming from:

1. I am committed to keeping our board accountable to the unit owners. Thats today and tomorrow. 
2. I am committed that our board will, at all times, operate in accordance with the Illinois Condominium Act, our Bylaws, and the Rules and Regulations of Briarcliffe Lakes Manor Homes.
3. I expect our Board of Managers to operate this association at all times as a business.
4. I expect our Board of Managers, as individuals and as a group, to understand what "Fiduciary Duties" are. I expect our Board of Managers, as individuals and as a group,  to uphold their Fiduciary Duties.
5. Once a unit owner announces their candidacy for the board of managers, they are announcing that they have given up their personal agenda and their rights to a personal agenda. They take on the responsibility for their training and education so that upon entering the board they are ready to "hit the ground running." Appointees to the board should understand this, and are making the same agreement. 
6. Each member of the Board of Managers is accountable and I expect that members of the board will hold each other accountable.  Each member should have specific duties and responsibilities. Because all members of the board vote on and act on any and all issues, they must be capable of understanding those issues, the governing documents and act accordingly. It they are not, it is their personal responsibility to acquire and achieve the necessary education. 
7. I expect our Board of Managers, as individuals and as a group, to understand the Illinois Condominium Act, our Bylaws and our Rules and Regulations. There are no excuses. Ignorance or stupidity are not acceptable. 
8. I expect the Board of Managers, at all times, to act on the behalf of the entire unit owner body, in their capacity as "fiduciaries", and I will not accept the promotion or creation of sub-groups or multiple tiers of unit owners.
9. I expect the Board of Managers, as individuals and as a group, to understand their duties. Stupidity and a lack of education are no excuses. I know, I said that twice.
10. I expect our Board of Managers to exhibit "critical thinking" skills and common sense at all times.
11. I am committed to educating the unit owners. Members of the Board of Managers are also unit owners.
12. I am not stupid. I leave that to others. There seems to be more than enough of that to go around in this world.
13. I am not entitled. I leave that to others. 
14. I'm not asking your permission.
15. This is not a popularity contest. This is about getting results. If you want reasons, excuses or any other blather, then talk to your friends, or go to a coffee-klatch or sports-bar at your own expense. But don't spend my money or that of your neighbors in the process of achieving your entertainment. 
16. This is about workability, the conditions of satisfaction and keeping agreements. 
17. I'm not here to be popular. I'm a unit owner. Living here is a conscious choice and no one is forcing me to be here. I really don't care if you like me or don't like me. You make your own choices and your own decisions. 
18. I won't kiss your ass and I don't expect you to kiss mine. If I catch you kissing someone else's I'll call you on it.
19. We are adults and we should act as such. That means being accountable and responsible and acting as members of a community. 
20. No one forced any of us to purchase here. So pitch in. 
21. I don't want your money, given voluntarily or as a forced donation. I think fees are a precious commodity. I don't want you to pay for a bench in front of my unit and I don't want to party on our lawn. That's what the public park across the street is for. 
22. According to the rules and regulations, businesses run from our units must adhere to specific standards and limitations. The board should be vigorous and diligent in this area. I believe certain types of prohibited income generating business activities could be garage sales, used car sales, flea markets and similar activities on BLMH property. If you want to run a business, rent an office offsite or adhere to the rules. I would expect the board to avoid lenient interpretation of these rules.
23. We don't live on a used car lot, racetrack, or a storage lot for boats, trucks, campers and trailers. This isn't a litter box. This isn't someone's personal playground. The Rules and Regulations state so. 
24. I expect our board to have sufficient backbone to enforce the rules and regulations consistently, uniformly and fairly at all times. 
25. As for our board in general, they should be willing, able and capable to stand up to unit owner demands when the Illinois Condominium Act, our Bylaws and our Rules and Regulations are an issue. It is not acceptable for board members to look the other way when there are violations or attempt to change the rules and bylaws to conform to the actions of individual unit owners. The board cannot please everyone and build a sustainable community. I do not agree with the position that the correction of problems at BLMH is to be achieved by changing or overlooking the governing documents. That is some one else's definition of "change"; it isn't mine and I assume it isn't yours. 
26. I know they pretend I don't exist, that this blog doesn't exist. But I do.   
27. Party on dudes, but not at my expense.
28. You may think that I expect too much from our Board. I suggest you consider that your standards are far too low. 
29. I don't like social experiments; there is far to much at risk, and once committed it is very difficult to undo the changes that have been made. Nor is BLMH a social club; it is a community.
30. I believe that 80% or more of the unit owners at BLMH are community moderates. They uphold the rules, pay their fees, can and do lend a hand, and are good neighbors. The others? They are the ones that are to be concerned about. 
31. I do understand that by "taking a stand" I am choosing, among other things, integrity over popularity. 
32. If you have a problem with any of this, you know where to find me.

If you want the original link to the tire posting above, from which the photo above was copied, or more information, click on this:

Click Here to go to the Original Posting

Spring has Sprung - Roof and Other Repairs Under Review

Our board is considering and evaluating repairs and expenditures of reserve funds for 2010. According to the report by our Architectural Director at the most recent association meeting, this will include:

1. Some Roofs.
2. Driveways approved and voted by the board to be repaved in 2009 but not done due to "weather" and "city code issues" and "other" interferences.
3. Additional Driveways discussed in 2009 as requiring repaving but not approved or included in the 2009 vote. These were deferred by the board until 2010.
4. Additional Driveways subject to discovery in the 2010 survey as being in need of and candidates for repair or replacement.

I don't believe the problem with the shifting building on Harrow Ct. was included in the discussion of projected expenditures. This problem was discovered by the former AD and our maintenance company during the roofing project and was discussed by the board in 2009. It was also discussed by the board during an earlier association meeting in 2010.

Our management is looking deeper into the asphalt problems on Lakecliffe.

All of this work is subject to motion and vote by the board. It is possible that no work will be done in 2010. That is however, unlikely and improbable. It is a reality, however, that the board may discuss and vote "NO" to any and all proposals and work on the above list. It would be unusual to reverse course on the driveways approved in 2009. However, that is not an impossibility. It is a fact that our CD voted 'NO' to the driveways approved in 2009. It is a possibility that she preferred to have other driveways repaired and resurfaced. If our board decides it is unwilling to spend the funds necessary for all the driveway repairs and the roofs designated as in need for 2010, then something will be removed from the list. This will be done in view of the unit owners, or behind closed doors, then brought forward, motioned and voted.

You may recall that in 2009, not all driveways earmarked by management as in need of replacement were slated for work in 2009. There were about 12 in need and only 7 were approved by vote of the board for replacement, as I recall. The remaining 5 driveways were deferred to 2010. There may be additional driveways in need; however, I am not aware of the board making a request of management for such a review at this time.

• Comment: I'm in favor of review of roofs, driveways and so on by management, with technical benchmarks. I have stated so repeatedly. Why management rather than board members? because of the political truism that there is always a possibility of favoritism. Our CD used to speak of "retribution" by the former board. So our current board is well aware of the possibility of this and I have spoken and emailed some of them on this subject. I become very concerned when members of the board of managers play "stupid" or pretend to have short memories on this subject. That I interpret as a signal that these types of activities are a very real possibility.  When people tell me "it would never happen here" I cringe. I wonder how naive or how embroiled are some of these people?

It's also a truism that "Time and tide tary on no man" [1639 J. Clarke Parœmiologia Anglo-Latina 233]. Our driveways will not heed the wishes of our board and will age and disintegrate as determined by weather, the weight placed upon them, and soil and base conditions. This was pointed out to our board in 2008/9 by the former AD, and at least one of the current board was present; that is, our CD. The former AD stated at one or two association meetings that driveways were never designed for the loading placed upon them by vehicles parked continuously; our driveways were not built to the same specifications as our streets. It is common knowledge that there are varying specifications for streets, parking lots and driveways. These are designs for varying loads placed upon them.  I provided technical advise and materials and specifications to the former AD. So I have more than a little knowledge of the condition of our driveways, of the concerns and opinions of the board expressed during the meetings (I was present) and I also am aware of the alternative methods available when rebuilding the driveways. I'll post more on that later.

This complacency and willingness to defer problems indefinitely has been a source of frustration. Member(s) of our board talk about "how we are all neighbors" and then, when it is time to do what is necessary as a board member, turn a deaf ear to the real problems unit owners experience. In 2008/9 I sat at association meetings in which unit owners expressed the very real problems they were having while entering and exiting their garages due to the state of some of the driveways. Yet, when the time came to spend the reserves we all contribute to, the vote by one of the board was "NO". Yet, this is the same board member who presses an agenda of parties, neighborliness, coffees and so on.

As I expressed to the board during a "homeowners session" in 2009, deferring these repairs simply compounds the problems, as more and more driveways reach a level of disrepair and urgency. How many driveways are we to do in a year? 10? 15? 20? The problems accumulate, the costs escalate. As I have stated repeatedly many times to this and last year's board, this association has finite human and capital (cash) resources and reserves. Allowing them to accumulate and problems also, means that we do not have the reserves we think we do. Are we playing money games at unit owner's expense? When that same member of the board stated during the April association meeting that we were at the appropriate percentage of reserves, the light went on. Ref: (1)

This year, it seems, based upon his statements during April's association meeting, the AD will use contractors as the primary source of recommendations. Question: If I were to ask a contractor his opinion, after a disastrous 2009, in which many contractors lost money, "How many roofs at BLMH require repair", what do you think the response would be: A) None, B) Some, C) A few, D) Only those that require it, or  E) As many as I, the contractor, can do in this year?

Here are a few photos of a roof. Do you think that a roof in this condition should be included in the repairs for 2010? Or, should it be patched? Or, should it be ignored?  I'm independently cataloging the roofs here at BLMH. I'll catalog and compare my photos to the roofs selected for replacement this year. In the future I'll provide a comparison of the roofs that were selected with those that are the "worst" in my files. It should be interesting. We have the tools and we have the technology. Modern digital cameras has expandable memory and after the initial investment in the camera, the photos are "free", requiring no development costs, paper, etc. They can be edited (compressed0 and enhanced and transported via email, flashdrive or CD. Business people and site engineers routinely use them for documenting and cataloging. As for the rest of us?

I will have a photo record of each roof. This is one from the archive I am building.

==================================
References, Errors, Omissions, Comments:

Ref: (1). A few years ago, I received an urgent telephone call. A million dollar machine had been diagnosed by protective equipment as having experienced a critical failure. With this machine out of operation, the process plant was unable to produce. The problem? Various experts of the protective system had concluded that there was a small possibility that the protective equipment had an internal software flaw. There was a possibility the diagnosis was in error and the machine did not have the problem it was diagnosed to have.

However, if we ran the machine and the diagnosis was accurate, we could destroy it. So what to do? I was asked my opinion and I suggested that the client take a spare machine out of inventory. Yes, they actually had a $1 million machine in storage as a "spare part". Installing it would permit resumption of production while the "defective" machine was sent to a shop for sophisticated diagnosis and tear-down.

What did the client do? They decided not to use the spare, but to risk destruction by trying the machine. Why? because to take that "spare" out of inventory would have meant a $1 million write-off, decreasing the value of the plant by that amount. So they decided to take the risk, bypass the protective system, and start up the machine.

It was a decision reached for financial means. This is similar to pumping up and holding our reserves at a specific value. Taking our funds and "investing" them in repairs will reduce them, and possibly reduce our perceived value and worthiness to potential home buyers. A possible solution is to only spend a reserve amount equivalent to that collected in any one year. Is that what our board is attempting to do?