Closure, 2010

Well, it's been an interesting several months, in my first official capacity as a member of the Board of Managers of BLMH.

It's always a good idea to look at what worked, what didn't and make a few observations about such an experience at the end of the current year, so that, as part of my "continuous improvement" regimen, I can formulate and prepare for the coming year, and make adjustment.

So here goes!

I think it's useful to state my perspective on assuming the duties of a board member.

• I think it's a job, that means work, and as they say "rolling up the sleeves."
• I think it's an opportunity to be of service to others, but I am no one's servant. There is a difference between a "steward" and a "servant".
• I think owner and resident safety is paramount. 
• After that, comes the appropriate use of finances. That's YOUR money we are spending, and we are stewards on your behalf. 
• I think it's necessary to prioritize tasks. We have limited funds, and limited time. Our owners pay their fees with an expectation that we use their money well. That means, maintain the property and its value, take care of "core" problems, and do the work fairly and equitably, so all owners benefit. I realize some owners think that a good use of association money is addressing their personal agenda. I think a good use of money is addressing association maintenance and capital projects. There will be disagreement, and I welcome it. 
• I'm but one of seven members of the board. That means, I can expect to accomplish some things, and be prevented from accomplishing other things. Compromise is necessary and expected, but never when safety is involved. 
• I'm simply "passing through" and am here for a limited amount of time.Whatever I do, it's in part, carrying on and building upon the work of my predecessors, and it's also about building a bridge to the future. 
• This association may be here for another 100 years. I'm part of the team that prepares us and designs that future. 
• This is not a popularity contest. 
• The needs of individual owners, and that includes their requests, should be compared to the needs of the association, which is to say, the needs of the other 335 owners, as part of the decision making process. 
• I have the governing documents, the Illinois Condominium Act, our management and our skilled contractors to aid and guide me. So I should use them, and I do and I will! 
• This is a partnership, with the board, our management, our contractors, and our owners. Anything that is accomplished, will be limited by the skills, capabilities and commitments inherent in that partnership.
• I'll do my best, and if possible, accomplish incredible things. But no matter what, the job must be done and the results achieved. 
• It's not about me.
• This may be work, but if it is more difficult than need be, that's an indication of a board that is not functional. 

I knew this job would be "work" and what has occurred in 2010 was generally, not a surprise. Perhaps the greatest surprise on assuming my position on the board, was the reserve study. I was given a copy shortly after the election. I was disappointed by some aspects of the study. That included what I would call "inconsistencies," some dubious conclusions, and some incompletions.  I spent a lot of time in a dialog with management about the study, wrote several "executive summaries" for the board and a lengthy letter to management and the board. I  found it necessary to spend an inordinate amount of time to reach some rational conclusions with the information contained in the report. It was necessary to create a series of spreadsheets for the board. Some of the results were published here as charts. There is more to do in 2011.

I was initially to be simply a "Director" and "Vice-President" of the association, but the resignation of the Architectural & Maintenance Director vacated that position. At my attendance of  the first association meeting on November 11, as a Director, I was formally asked to assume that position, and accepted. I was then given some of the documents for projects in 2010. So that position is now my primary accountability.

Many of the Architectural and Maintenance programs are in "full swing" here at BLMH.  Fundamental decisions about the roofing project were made several years ago, were re-iterated by the board last year, and will not have any substantial changes. I see little freedom to make decisions in that area. However, if there were some significant cost saving or income generating possibility, and that includes energy generation, I would certainly consider it and bring it before the board. In December, I discovered that several downspouts were incomplete. That work will be done if weather permits, or if not, will wait for spring.

The driveway re-paving project was accelerated last year. On assuming the duties of A&M Director, it became a priority to complete that work in 2010. That included the cutting of swales for those buildings involved in the driveway and roofing projects. That work was delayed, in part by the unscheduled change in A&M Directors, and also by the late schedule of the project, and a sudden change in weather. However, swales were cut in early December.

Finances are an integral part of any board members duties. I'm not the treasurer, but just about every time I vote, I'm spending some of each owner's money. So, as I see it, I need to be really aware of how finances "work" in this association. So that means, I reviewed each and every bill and work order in the November "information packet" provided to each board member. That was the first packet made available to me, and I'll do that each and every month. In November, I discovered an approximately $1,500 overpayment. I also discovered several work orders in which it appears that unit owners were given services they should have paid for. More on this in future posts.

I had the opportunity to prepare my first article as "Architectural Director" for the January newsletter. I used the space that is available for that purpose, to provide information and guidance to all owners. I see the newsletter as providing key information to all owners. Using it, I have the opportunity to:

• Provide information about key projects.
• Advise owners on how their money is being spent on maintenance and projects.
• Advise owners on priorities as A&M director. 
• Provide guidance or information to owners.

The limited space of the newsletter, means that whatever I provide must be carefully worded, to provide the information and tone of what I am attempting to convey. Readers of this blog have an opportunity which most owners do not. This information will not be included in the newsletter because there is insufficient space, and because this blog is a personal effort, and not recognized by the board or the association. In October 2010 I was given the opportunity to assume the duties of "webmaster" of the official BLMH.org website. However, I was also told by our president as part of the larger conversation about what duties I might perform on the board, that splitting accountabilities between two individuals (i.e.; A&M director) was unworkable. So I declined because it would seem that such a change would mean splitting the duties of the CD among board members. 

My first article for the newsletter was about the water main break on Gloucester. If requested by the president, CD and other members of the board, I will provide other articles on subjects that are requested, time and other duties, permitting. 

I was surprised by the cost of the driveways that were completed in 2010. This was much higher than the estimates of the reserve study, and depleted the reserves for this purpose, by an amount much larger than would be expected on a percentage basis. For example, if 15% of the driveways were replaced, it would be expected that about 15% of the reserves would be spent. But that was not the case.

This led me to make an independent survey of the driveways at BLMH, and with 50 foot tape measure in hand, I measured about 25% of the driveways and calculated their areas. I then used aerial photos and by comparing the measured driveways to all of the others, determined the total area of the driveways. This was reported in a post on October 7. I provided this information to management and the board.  In this manner, I determined that in 2010 the board spent 53.57% of the paving reserves on 14.59% of the driveways, based on the driveway area. This was alarming to me.

Drainage has been an ongoing issue at BLMH. I suspect some of this may be of our own doing. There has been increased application of mulch in recent years, I believe. I've been told that each 6 inches of mulch decays and becomes 1 inch of soil. Mulch will "float" and flow with rain water to the low points of our wonderfully hilly and manicured grounds. That sometimes means, it is deposited against buildings and at other times, in areas that impede the flow of water. As a consequence, it seems we have more water moving in the wrong direction, and accumulates against buildings, enters garages, or flows across entryway walks.

That water then sometimes rises to above the foundation and then enters buildings, or garages, or carries mulch across the walks, where it is deposited where people walk. I have been advocating more sustainable approaches for several years, and that includes increased ground cover in lieu of mulch. I have begun pressing my case. This will require agreement of the Landscaping Director and of course, the board.

We have approximately 800 trees here at BLMH. I've had a number of discussions with the board and management about how to treat this asset. A lot of the "ambiance" and appearance of BLMH was achieved with the many varieties of trees on the property. The issue as I see it is this. We didn't have a program for accruing funds for programmed replacement of trees. Is this necessary? Consider that many of these trees are ornamentals and have limited practical life spans. They were all planted at about the same time. That implies that groups of trees on the property will reach the end of their useful lifespan simultaneously. So what to do and how to plan and prepare? That discussion began in 2010. Management is in favor of continued removal of willow trees, which apparently have a habit of breaking off or falling. That could create serious damage to buildings. That discussion also began in 2010.

On assuming my duties, one of the first issues was a structural repair at 1731. This had been discussed by the board in 2008, but had gone nowhere. The residents have been experiencing cracks in their walls, and it was time to get this done. That's what I mean by "setting priorities." I can understand that a cracked garage floor is a problem. However, a settling building, which results in "staircase" cracks on several wall of masonry, problems with windows, and spreading cracks in internal ceilings and walls, is a serious thing. Worse still, if this problem is not resolved, the structural issues will increase in severity, with larger cracks and more damage. This increases the repair costs. So I took it upon myself to make this problem a priority. Work was delayed because of problems with the proposals, and I raised some serious concerns. Management did obtain appropriate and accurate proposals, and the board was amenable to the problem and agreed to select and award a contract at the November 11 meeting. That work, I understand, will proceed in January 2011. I'm looking forward to the final outcome, and am hopeful the company selected is successful and there is minimal secondary damage. Structural repairs of this type, involve some uncertainty. A concerned owner asked about this during the November meeting, and with the board's permission I read a statement contained in the proposal of the selected bidder to all present.

A minor fire in a utility water closet in a garage, which was caused by wiring or the space heater,  was an opportunity to begin looking at alternatives. Heat tracing might be such an alternative, and preliminary discussions with management and maintenance occurred. However, this will requires funds and perhaps some experimentation. At BLMH there are secondary considerations because of the quantity of buildings. It's not one or two water closets. There are about 84. So costs can escalate. I am also inclined to make incremental changes so as to be assured there are no secondary problems. Another item to explore in 2011.

A fire at a neighboring association gave us all an opportunity to think about fireplace safety. There have been requests for conversion to wood burning from time to time. I am opposed to this, and I think if all owners were aware of the differences of gas- and wood-burning fireplaces, and the consequences and safety issues, they also might be concerned. I made several posts here, and was involved in the preparation of an "Urgent Safety Notice" for owners and residents. This was posted in each building and I have been told, will be included in the January newsletter.

The former LD undertook with management, the installation of lower wattage CFL light bulbs in 2010. This was an "experiment" and at the November association meeting, it was pronounced that the results are acceptable. So this will now migrate to all buildings. I can't state what the precise reduction in energy or lighting levels will be.

Last year, there were several garages in need of new floors. This came up for serious discussion at the same time as the reserve study, and the budget for 2011. I discovered that there had not been a recent survey of garage floors. In other words, this association does not really know the condition of all garages. I approached the board and suggested that we delay repairs in 2010 until we completed a survey in 2011. My rationale was the fact that we might not have sufficient funds to do all of the necessary driveways and there may be other driveways in even worse condition than those discussed in 2010. The board agreed.

That's one of the problems in an association such as ours. With board turnover, and more than enough to do at all times even with a full board, there is a lot of information that "drops through the cracks" both figuratively and literally. So we don't always know all of the facts. On assuming my responsibilities, I discovered just how little the board really knows about some aspects of the condition of our property. We have maps of all of the trees on the property, but when one is removed, is the map updated? We sometimes get input from unit owners about problems with their concrete patios, or a garage floor, but do we have a spreadsheet with information and a rating system on all and that includes the history of repairs? Management has a lot of information, and that has been passed to earlier boards. But it's not always readily available for a new board member. On assuming my position on the board, I asked several board members if there was a chart listing the dates of our roofs. I mostly got blank stares. An earlier A&M Director had requested that information in 2006, and I was fortunate to obtain a copy of management's response. But this data seems to get lost, or doesn't get passed from board member to member. I can understand why. If a board becomes adversarial, and in the recent past, our association's board has been, that's little incentive for members to cooperate.

However, in 2010 I did my best to cooperate with previous members and current members, and it's all about doing the job, as far as I am concerned.

So I suggested the A&M Director prepare several spread sheets in 2010 and he passed those to me at my request. I'll update them or improve them, and they will, in turn, be passed to future directors and boards. That's the way it should be, shouldn't it?

I've completed a task agenda for 2011 and have provided some insight into that, to our board president. I'll be expanding it as necessary and I'll provide some information to you, the reader, on this site, as part of future posts.

For example, that task agenda included researching  the impact of electric vehicles here at BLMH.Those vehicles will require a lot of electricity to recharge. Recharging in our garages, using association electricity for that purpose, is akin to providing "free gasoline" to some owners, at the expense of other owners. That's not a good use of association money and of YOUR fees.  I've had several conversations with owners here at BLMH about this, have completed significant research into the issues of electric vehicles here at BLMH. I've made a preliminary appraisal and discussed this with management and our maintenance company. I've gotten their expert opinion, I sent an "executive summary" to the board members, and as a consequence, a brief statement was sent to our Communications Director for inclusion in my 290 word allotment in the January newsletter. I'll have more on electric vehicles and possible consequences posted here in the near future.One member of the board suggested that we delay until an owner purchases such a vehicle. I disagreed. I'm opposed to being a reaction to events at BLMH, and would like to minimize that. I also suspect an owner might like to be aware of the issues and possible costs of recharging an electric vehicle in the garage, before they purchase one. That's the position I've taken with the board.

The budgeting process for 2011 required two workshop meetings, attended by most, but not all of the current board members. The Operations and Maintenance budget was trimmed to what I would say is "a minimum." This was done with the goal to minimize the fee increase. To accomplish this, required some reductions in services, and a few assumptions. In football, they would call this a "hail mary pass." The reserves budgeting was increased, but by less than that recommended by management, as a consequence of the "reserve study." I prepared various charts and diagrams for presentation as part of a "slide show" at the November association meeting. Because of time restraints, this was presented after the conclusion of the meeting. If I discount board members and the spouses of such members, and management, about six people stayed after the formal close of the meeting, for that presentation. That's about 1.8% of the ownership. So I conclude that "budgeting" might be of  little interest to 98% of the owners at BLMH.

At the request of the CD, I prepared a pie chart of the O&M budget for inclusion in the December newsletter. This newsletter "never happened."  I now understand the chart I prepared will be issued with the January newsletter.

I would say the board did its best to come to a minimal fee increase for 2011. I also know that some owners will consider any fee increase, to be "too large" an increase. All I can say is, I am aware of the problems facing our owners because of the economy, the 0% COLA increase for those on social security, and so on. I am also aware of the need to maintain this property. I find it interesting that an owner, whose building received a new roof in 2010, made the statement that "I hope I get a new driveway [soon]." That money will have to come from somewhere, and specifically our reserves. It's absolutely necessary to continue building those reserves, to accomplish the major roofing and driveway projects this association has undertaken. If we don't, a situation akin to "musical chairs" will occur, and some owners won't have a place to sit when the music stops. In our case, when their roof or driveway is assessed as needing replacement, there won't be funds available unless we collect and save them as reserves.

Finally, there has been very limited discussion of modifying "emergency" procedures and communications methods here at BLMH. This was prompted by the water main break on Gloucester. Perhaps in 2011?

So, that's a very brief, and very abridged, summary of my first three months as a member of the board.. There has been some work, and it has been very interesting.

Consider the possibilities of the synergy between an energized and pro-active board, management, the contractors and our owners and residents. Wow! That's what will make this association what it is in 2011! I'll be posting on "Possibilities, 2011" soon.

Comments, Corrections, Omissions, References

Note 1.  I was given no opportunity to make a statement at the November 11 meeting. It was "let's get to work." So I have accepted the direction of the board, and work it is. I've taken the opportunity to provide my perspective as a new board member in this post.