Comments and Observations on 2010 Budget and Lakecliffe Drive

Here's another communication on budgets taken from my archives. I sent this to the president of the association on January 29, 2010. The subject was "Comments and observations on the budget" which was the budget that had been sent to owners such as myself.

It includes my opinion of the situation with Lakecliffe Drive. I had been very vocal in presenting my opinion that there was evidence this street would fail prematurely. This email was one in a series of my articulation of the problems with this street. I had numerous conversations about this as an owner and not only at HOA meetings but also with various members of the board, management and a former Architectural Director. I was also of the opinion that the near term costs of this street, the roofing project and driveways would counter the prevailing argument and beliefs of some owners including board members that "Our fees are unnecessarily high." The numbers and my personal projections, made with the public information of the association had indicated that it would be necessary to either reduce expenditures via something like an "austerity program" or simply build budget shortfalls. A consequence of shortfalls would be an inability to complete these projects or there would be the necessity of special assessments. A board member questioned my conclusions and asked "Where do you get your inside information?" All of my information was in the public domain and published by the HOA or gleaned from my notes takes during the open session of the HOA meetings, which I attended regularly.

On the subject of Lakecliffe Drive, no one can ever say I didn't tell them so. As I frequently state, my crystal ball isn't perfect and so I am cautious about making predictions. In 2008 I was comfortable with my analysis because of the visible evidence. With annual patching the street has survived for four years beyond the January email. Replacement will begin 6 years earlier than the earliest predicted date used by our boards and management.

Interestingly, the July 1, 2010 "Reserve Study and Analysis" commissioned by the board at the time indicated that the condition of the streets was "good" and with an "Effective useful life" of 20 years. Using the most recent repaving date, the streets allegedly had a remaining useful life of 10 years with replacement not to occur until 2021-2022, with recommended maintenance every 5 years. That expert dropped the ball or told the board what they wanted to hear. You can choose. For its part, the board at the time expended no funds on street maintenance, although none had been done for 10 years but was recommended at 5 year intervals. At this time, some sections of the street are beyond salvage and spending money to repair rather than replace would not be a good use of association funds.

The estimated cost to replace the streets in the HOA? Oh, about a half-million dollars. Let's assume we can nurse some of these streets for another 5 years. If so the cost to owners for early failure? About $125,000. That would require an additional reserve contribution of about $25,000 per year, or $78 higher annual fees for each owner. These problems do add up. The good news? The association does have current reserves for asphalt.

Armed with the same public information I had in the fall of 2009 as well as my additional analysis of the street and the budgets the board voted for a 0% fee increase, as I recall. The highlights in the following are mine. At the time I wrote the email I did not have the data of the reserve study. The guesstimate for the replacement of the failing section (Lakecliffe from Salisbury to Briarcliffe) was entirely mine. I assumed that 90% of the curbs were okay, but that the asphalt and base would have to be removed and replaced.

"January 29, 2010
Hi [Madam President]:

Regarding the resale information, a local Realtor provides me with this information on an annual basis. I’ll forward it to you, as it may save you some time. 

On the finances at BLMH, the budgetary spreadsheet indicates that certain “Building Maintenance” items were greater than budgeted in 2009. It was my understanding that funds were expended as part of the roofing and driveway projects, i.e. additional concrete, relocation of gutters, addition of “eyebrow” at entrances, special landscaping to accommodate the drives and gutters, etc. The funds expended for these items were to have been allocated against reserves. Are they actually in “Building Maintenance” for “2009 Actual”? If they are, then the amount for “Building Maintenance” is overstated. Wouldn’t it be better to have a separate category for “annual reserve expenditures”. These are extraordinary and are not a part of annual maintenance. If they are included in ‘maintenance’ the expenditures skew the data, and imply maintenance is higher than it actually is.

As you might be aware, this association has a history of underfunding reserves. I am referring to the entire history of this association. For the period 1978 until roughly 2000 the amounts added annually to reserves were [in my opinion] inadequate. I’ve done studies of this, and have sent letters to management and the board as well as posted on my blog. With the retention of [a new management company in 1998], the board of managers was made aware of this very serious problem and began ramping up reserves in 2000. I have been a unit owner for about 10 years and I am very well acquainted with this problem. Reserves at the time of my purchase were about $300 per unit. To put this in perspective, we are today collecting fees of $330,000 annually for reserves, or $982 per unit. This association presently collects three times more each year than it had managed to accumulate [at the end of] the 20 years prior to 2000!

Here is a link to a website article which includes both some information about “fiduciary duties” as they apply to the board of this association, which is another problem area. It includes a graphic detailing the shortfall in reserves, which accumulated during the period 1983 to 1998. It’s about $1.3 million dollars! Unit owners today are paying higher fees because this association is making up this shortfall. The fee shortfall “peaked” in 2000 and turned around. The association “caught up” and began pulling ahead in 2009. This is shown on the second graph on the website article. The link to the site is:

New Window> http://tinyurl.com/ykbn9wh 

If you are interested in more information on the association fee history, go to:

New Window> http://tinyurl.com/yb8rqbt 

I have another post and this provides more details of how this association achieved this extraordinary shortfall:

New Window> http://tinyurl.com/yb5re8f 

Finally, I have posted several articles on the topic of “Reserves” for this association. They are all here: [Note: the following link will open a complete series of posts on a specific topic. Scroll down to see the earlier posts]:

http://tinyurl.com/yckt2op

As you know, there are two areas of finances in the budget. These are 1) Annual maintenance and operations and 2) Reserves. The proposed budget will hold these constant. That means that certain repairs may not be accomplished when necessary as the reserves may not be available. To hold fees constant means either reducing the amount expended for annual operations and maintenance, or reducing the amount for reserves. There are no alternatives. Does this board have the intention to investigate methods to reduce common area maintenance? Items for “grounds” and “trees” are $182,000.

It is my understanding that “sealcoating” is in question. These funds could be applied to work for the preservation of Lakecliffe. There is a serious problem with that street and it is deteriorating rapidly. If steps are not take to reverse this trend, the association may be faced with an expenditure in excess of $100,000 dollars over the next 5 years.

Finally, I was disappointed to see no forward projection for the roofing and driveway projects. We know the cost per roof and we know the cost per square foot of driveway. Of course, these may change but they are good starting points. The association should know the expenditure year by year to replace these in a timely manner. Why was this not included in the budget information?

Thank you."

Where Does the Money Go in Our HOA?

The subject of this post is a popular one in our HOA. It is prompted by the comments of owners who fail to do the arithmetic.

Here is the content of an email to the Architectural Director of this HOA on February 10, 2010. The information was public information and was not only posted on this blog but also openly discussed in HOA meetings. The information remains on this blog and the links were in that email and are also contained here:

"Hi [Mr. Architectural Director]:

Here are links which provide some information on the accumulation of reserves here at BLMH or at one time, the lack of reserves. This is provided as we discussed this morning. I think a historical perspective may assist you when discussing this with your fellow unit owners.

I think it is useful to have this number handy: In September of 1998 the total reserves for BLMH was $86,321. That’s about $257 per unit. I realize that there has been inflation in the intervening years so here is the same value in 2010 dollars: $343.26!  Obviously, this association had a financial problem, and it has been resolved to the extent that it has by gradually and continuously raising the fees. However, it appears that there are people who are very unhappy with this increase in fees.

So here is my first link which provides a summary of our fees and how, over a period of years we got where we were in 1998 and were we [presently] are. It also provides an alternative method for roughly determining fee increases based on readily available COLA index. That index is not perfect, but it does provide a compass to compare where we are and where government economists expect we will be in one year:

New Window> http://tinyurl.com/yb5re8f 

This link provides a history of our fees:

New Window> http://tinyurl.com/yb8rqbt 

This is an update October 2009:

New Window> http://tinyurl.com/ykbn9wh 


This link provided a comparison of a unit owner personal budget to the association budget:


New Window> http://tinyurl.com/yd7osjl 

Finally, here is a link which provides insights into our fees in the fall of 2008:

New Window> http://tinyurl.com/ye32xq3 

If you have any questions or comments, please advise me."

Fireplace Fiasco Saga

Currently, all of the fireplaces in this association have been condemned by the City of Wheaton. How this came to be is a tale of incompetence at several levels.

500 Fireplaces, and Counting
Back in the late 1970s the City of Wheaton got on board the expansion in this part of DuPage County. A tremendous expansion in south Wheaton took place and corn fields were replaced with homes, condominiums and apartments. Our association of 336 units was built as was another nearby.

In the process, something went wrong. The builder made mistakes and the city code enforcement division fell down on the job. In our HOA this showed up as no steel reinforcing installed in garage floors. But a more deadly and insidious problem was lurking within our units.

In 2010 a fire occurred in a nearby association. About a year later there was a second. It appeared the fires began with the fireplaces. This got the attention of the board at BLMH and in September 2011 an urgent safety bulletin was posted for residents. Not everyone on the board was happy about this turn of events and a few owners felt we had overstepped our bounds. After all, it was "my" fireplace stated one owner and I'll darn well do as I please.

Management and I agreed that safety was foremost and trumped any inconvenience. I recall several passionate and heated discussion I had on this subject. One was with the then president of the board. Owners would be unhappy. Of course, this would be an inconvenience. Of course, it might interfere with sales or property values. I argued the downside would be far, far worse. Compare the inconvenience of a destructive fire. Compare the "inconvenience" of possible injury or death. Compare the rise in insurance premiums not only to owners but also to the association. Any such insurance premium increase would be reflected in the owner fees. Yes, there was a larger picture here and not using one's fireplace seemed a very small price to pay and a temporary one. This would eventually be sorted out. None the less, one owner publicly lambasted the manager and questioned his judgement for bringing our fireplaces to the attention of the city.

What had gone wrong?
Apparently, 180 or so fireplaces were installed in a nearby HOA in such a manner as to render them unsafe and a hazard. At the time of construction this was not detected by the inspectors of the City of Wheaton. The problem, however, was far more extensive and included other buildings in the city. It now appears that 500 fireplaces were improperly installed. It is possible there are others.

A Safety Hazard and Other Issues
This is the latest of a series of mishaps at BLMH. Shortly after construction it was determined that there was no steel reinforcing in the garage floors. This too was an expensive problem, but was not a safety issue. How many garages are we talking about? This HOA has 84 4-car garages. The problem was an expensive one to correct. And some owners wonder "where does the money go?" Over the years some of it has been spent dealing with construction defects. In fact, more has and will be spent on these problems than on all of the road, driveway and roof replacements.

The fireplaces are a larger problem than the garage floors had been. In our HOA 330+ fireplaces were not properly installed, were not properly inspected, and then were sealed into the wall. A ticking time bomb, as it turns out.

So What is being done about this?
Fireplaces have been a discussion item at each and every association meeting at BLMH for two years. One issue was to provide a continuous reminder to residents "Do not use your fireplaces." Another was to track the progress and issues at the nearby HOA so as to be prepared for our day. A third was to come to terms with owners who expected something to be done by the board  "now." Some owners have been very impatient. It's been the position of the board that "It is your fireplace, you can replace it at any time." Of course, that will be expensive and no one wants to be a pioneer.

Throughout, management maintained a dialogue with the Building and Code Enforcement Department of Wheaton.

At times, the board calmed owners and advised patience. I actively promoted the position "Save for this, you will need funds to deal with it when the time comes." The fireplaces are owner property and were an option at the time of construction. Not all units have one. Owners have been reminded that the fireplace is their property. As such, owners need to do their own due diligence. Not all owners agree. There has been a continuous pressure on the part of some owners to push this as well as any and all other issues real or perceived, onto the board. So the board is expected to deal with the unhappiness of some owners with COD, the board is expected to figure out the fireplaces, etc. etc. etc. A former president once stated "They expect concierge service."

There is a double standard at BLMH. Some owners love to complain and then figuratively beat on the table and say such things as "I'm an owner, I expect such and such from the association." It's my opinion that the fireplaces present the opportunity for the 336 "owners" in this association to walk the talk.

2012 and to the Present
By 2012 management and the board asked for volunteer owners who would allow an inspection of their fireplaces. Few owners were willing, but the association was able to conduct an inspection of a few and that information was provided to the city Building and Code Enforcement Department. Of course, inspecting four fireplaces, or about 1% of the fireplaces on the property might not be conclusive. However, it seems likely that each fireplace at BLMH was installed improperly and not inspected properly by the City of Wheaton at the time of installation.

In the past year there have been informal, uncoordinated discussions with the Building and Code Enforcement Department. Owners who had these discussions and came to the HOA meetings reported a confusing list of requirements. Management also seemed to be getting inconsistent information. However, in December 2013 it was decided that we had sufficient information to move forward.

I suggested that a letter be written to the Building and Code Enforcement Department requesting specific guidance. The goal was to achieve some clarification. The board and management agreed and so I wrote that letter. Five scenarios had been identified:

1. An owner felt their fireplace did not have a problem. What to do?
2. An owner desires to remove their fireplace. What codes, permits and other requirements were to be satisfied?
3. An owner desires to replace their fireplace with a natural gas vented unit. What codes, permits and other requirements were to be satisfied?
4. An owner desires to replace their fireplace with a ventless gas fireplace. What codes, permits and other requirements were to be satisfied?
5. An owner desires to replace their fireplace with an electric unit. What codes, permits and other requirements were to be satisfied?

The City Responds
The letter was mailed to the Building and Code Enforcement Department in December with copies to the Mayor, City Council, City Management and the Engineering Department. I attended a coffee with the council meeting and presented my personal perspective in a candid conversation.

The letter of response is somewhat vague. The city doesn't want to provide a design guide to the owners. Of course, the reason 500 owners in Wheaton are being made to jump through these hoops and expend several million dollars is because of a failure on the part of the city. I suppose one might argue to the contrary; yes if they had been properly installed there would be no problem. It has been said the these factory built fireplaces are "at the end of their useful life."  However, no one has issued a city wide directive stating that any and all fireplaces installed prior to 1980 are unsafe and must not be used. This is a very consistent failure to properly inspect a large number of original installations on the part of the city.

Each owner at BLMH have been given a copy of the response of the city to my letter. Suffice it to say that the city's response has generated some confusion. There is an opinion this may be intentional on the part of the Building and Code Enforcement Department.

Confusion has been pronounced by the near simultaneous announcement by the very same Building and Code Enforcement Department that they want to shift from the 2003 code to 2012 code. So which code should owners spend their money attempting to design to, and will the 2012 code increase owner costs even more?

Will this be Expensive to Correct?
The city has stated the defects must be corrected. Complete removal or replacement seems to be the only options. However, the Building and Code Enforcement Department has indicated they are willing to discuss other options. That appears to be a false hope. I say that because of what has occurred during the correction of this defect elsewhere in Wheaton.

Further more, the city insists all current codes be adhered to. That may require adding insulation and electrical outlet(s) for example.

I will be monitoring this process for consistency and even-handedness on the part of the Building and Code Enforcement Department

This will financially stress some owners. Will anyone foreclose as a consequence? I don't know, but I am considering a "foreclosure meter" to be added to this blog.

I was planning on a newer, better furnace and HVAC system and got a quote. That will not happen at this time because I have decided to allocate those financial resources to the fireplace problem. The furnace and HVAC system I have is working fine and is about 12 years old. However, I prefer to take care of these things on a "preventative maintenance schedule." In that way I avoid or minimize breakdowns. The possible energy savings and benefits of a newer furnace and HVAC will have to wait. On the other hand, the Department of Energy new, improved standard for air conditioners goes into effect January 1, 2015. That might yield some additional energy improvement and so waiting might have some benefit. On the other hand, the edict passed down by the DOE for gas furnaces, which was overturned by the courts, simply raised costs to owners with little or no benefit. I posted about this on March 9. 2013.  In other words, waiting to replace my air condition in 2015 may provide nothing more but much higher installation costs.

What will I do about My fireplace?
I am of the opinion that removal of the offending components, including firebox, flue and chimney is necessary to satisfy the city. However, if this can be done without removal of the brick or stone faux mantle, it should be less costly. I would then like to install an electric fireplace on the surface or on new framing installed in the existing faux stone fireplace enclosure. The floor and ceilings will be properly sealed, the gas line will be capped and an additional electric outlet will be installed in the opening of the former gas line shutoff.

I have been told the city won't accept this. As far as I am concerned, if all codes are adhered to then the city has no choice but to accept this. By "all codes" I mean the codes the city is enforcing elsewhere.

The Limits of Involvement of the HOA Board and Management
Now, some owners feel this is someone else's problem. The builder dropped the ball and so did the City. They also feel that the association should take these people to task and solve this.

There are some realities here. First, the HOA has 336 owners, most of whom own a fireplace and are perfectly capable of dealing with the problems caused by their appliances, furnace, air conditioner and hot water heater. This is a part of home ownership. This HOA is not an apartment complex, it doesn't have a superintendent nor is it a retirement community. It has six board members who oversee the operation of the HOA and one manager. In fact, the board is understaffed and has been for years. Why should six volunteers take on the problems of the personal property of the 330 other owners?

The answer is simply this. They should not. However, the board is also in the unique position to provide coordination and maintain the peace. Nor is there any time or money budgeted to pursue this legally. Owners are welcome to spend their personal funds in any way they want, and they do so when they are so moved.

As I said, there is and continues to be a double standard at BLMH. When the association attempts to enforce the rules, some owners will say "It's my unit and my property. I'll do what I please." A case in point is the satellite antennas on the property. These are owned by the respective owners or their tenants. The association has rules about where and how personal property can be put in the common elements. The exterior of the buildings and the roofs and grounds are "common elements." There are guidelines about where to install and if on the roof, there are stipulations to assure the roofs and trusses are protected. Yet, more than one owner has threatened legal action when the board attempted to enforce the rules. Another owner attempted to install park equipment in the common elements, there have been address markers placed on lighting standards at the street, people routinely feed the birds and other animals and then complain when mice enter the building, etc. etc. When the board has attempted to enforce the rules about these, the argument of the owners becomes "It is my property; you have no right to tell me what to do with my property." So it should be with the fireplaces. It is the City of Wheaton that has condemned your fireplace. The association issued a directive, an "urgent safety notice" when it became known that similar fireplaces were suspect in nearby fires. This was to protect the residents from themselves and their neighbors and to protect the structure of the building.  Some owners again took the position "It's my fireplace. You cannot tell me what to do." Now that the City of Wheaton has condemned your fireplace, I suggest that if you have an issue about this, then discuss it with the City of Wheaton. It is your personal property. As some owners have stated time and time again "I will do what I want with my personal property; I'm an owner." So do it! However, the association should take steps to assure that the roofs are properly repaired or sealed when you have your chimney removed or replaced. It should also take steps to assure that insulation is in place so water lines and other pipes in trussed spaces or other common areas are protected from freezing when you have the modifications made to your fireplace.

The Impact on Resale Values
Home values have taken a hit in south Wheaton. For our association, the problems include not only the fireplace issue. Our fees are higher than basic HOAs because this is a PUD or Private Urban Development. We pay for maintenance items that other residents in Wheaton are provided as part of their taxes. In other words, our owners pay twice; once to the City of Wheaton and again to the association. Furthermore, the well publicized flood issues in south Wheaton remain unresolved. The city is supposed to "operate and maintain" a storm water control system which includes Lake 3 to the north and Lake 4 to the south. However, in the four decades this system has existed under city control it hasn't done very well. The most recent flooding has again raised the specter of serious problems. These problems too, like the fireplaces, have been there all along, but have been aggravated by recent events, including the construction at the college. Finally, the "Community" College of DuPage has gone on a tax and spending spree, borrowing about $340 million in the name of the taxpayers and is busy paving its campus, installing extensive storm sewers on the western half of the campus which further aggravates an already serious situation. The college for its part seems content to build white elephants such as the hotel and 4-star restaurant, and a monument to Robert Breuder, the current president.

This was once a nice neighborhood to live in. However, anyone with some common sense would have some valid concerns about the situation in south Wheaton, and the costs it will take for the Briarcliffe Lakes Manor Homes Association to deal with these. And who is expected to figure this out? Why, the board of BLMH, of course!  As several of the owners explained during the 2012 COD hearings "This is primarily a retirement community." Really?

The Winter Respite Provides Opportunities

The warming trend and break in the winter weather provided an opportunity for us all to get a little sun and for maintenance.

Patching was done on Lakecliffe, although doing this in the winter is a temporary measure. The larger patches will not sustain the pounding of heavy vehicles, which includes delivery trucks, moving vans and so on.

With the completion of patching, some residents will be inclined to speed up as they drive through the property. That will hasten the disintegration of the patches. I'm sure we'll be bouncing in potholes after the next snow.

Lakecliffe is on it's last legs
Some people wondered why, in 2008, I pushed for urgency to formulate a plan to redo this street because of signs of imminent failure. Back then, everyone said "The street was designed to last until 2022." No, it wasn't; nor was it installed in such a manner as to provide maintenance free service for a projected 15 to 20 years. Others wondered why I grew impatient in 2012. Well, now you know why. However, in 2008 the argument was "We want to keep fees as low as possible." The strategy was "Spend the money on mulch and daffodils and spruce the place up." After all, any dollar spent must be collected as fees and so "If we don't spend it, we don't need to collect it or save it." Besides, anyone who lives on Salisbury, Thames, Gloucester, Plymouth, Dover or the other end of Lakecliffe can drive out the other entrance, and most do. So they can avoid the problem entirely. Of course, this puts more traffic on the other section of Lakecliffe. These streets are supposedly designed for a specific number of vehicle passes per day which multiplied by months and years determines the lifetime ability of the street to carry traffic. So we may be hastening the demise of the other end of Lakecliffe by inadvertently directing twice the normal traffic on that section of road.

Here's typical patching installed this week on the northern section. 

Finally, a Full 24 hours Above Freezing

Currently it is 53F. Tonight the low is predicted to be 34F. This is nearly identical to December 4, 2013 and unlike December 4  there will be no freezing rain or snow.

This is the second first full day above freezing since December 4, 2013.  February 20th was a mild winter day with a high of 46F.

The Spring thaw has begun.

Is the winter of 2013-2014 over?
Not yet. It's predicted we'll get 4 to 8 inches of snow on Tuesday evening. Winter may get the last laugh. A few years ago we received a 12 inch snowfall on April 1.

City Council Considering Adopting Updated Building Codes

The City is considering a significant change to the building codes. Currently, the codes are based on the 2003 version of the ICC (International Code Council). The city is considering making the 2012 version the official code requirement. The press release and links to related matter is included at the end of this post.

The owners in our association are in the beginning stages of replacing or removing all fireplaces. A series of future posts will detail why this is necessary and how the owners and association are going about doing this.

The possible change in city codes would suggest that any owner wait to see where this particular moving target goes. After all, any new installation will have to meet the code that is in place in a few months. The Building Code & Enforcement Director has stipulated that plans and drawings be provided before approval and permitting. As I see it, spending money on engineering or architectural services could be a waste of owner money at this time.

PRESS RELEASE

Contact Information:
Director of Building & Code Enforcement Joe Kreidl

2/26/2014

City Council Considering Adopting Updated Building Codes

WHEATON, Ill. – The City Council is reviewing the adoption of the 2012 ICC Building Codes. The City currently enforces the 2003 ICC Building Codes.

Copies of the 2012 ICC Building Codes, significant changes to the codes since 2003, and a draft ordinance adopting the 2012 ICC Building Codes are available for inspection at the Building Department, Wheaton City Hall, 303 W. Wesley St., during normal business hours. For questions or feedback, please contact Joe Kreidl, Director of Building and Code Enforcement at jkreidl@wheaton.il.us or 630-260-2050.

The City Council discussed proposed changes to the Building Codes at the Feb. 24 Planning Session. You can view the meeting video and see the Report on Updating Building Codes on the City’s website.

The Council will further discuss these changes at the March 24 Planning Session. A first reading of the proposed ordinance will take place at the April 7 City Council Meeting, and the Council will vote on it at the April 21 City Council Meeting.

### 

Clicking will open a  New Window> Planning Session Video

Clicking will open a  New Window> Report on Updating Building Codes

In the Mines This Week? Where's Norm?

There have been no posts for several days. When it seems I've "gone away" for a few days, or a week or so, the assumption may be that "Norm is on vacation" or is asleep.  That is usually not the case.  Sometimes things are quiet, or I decide to give the reader and myself a rest. Other times, I'm away on business matters.

This was one of those times when I was away on business. "Business" is a broad term. In my case. I have some unusual skills and I'm probably the only miner living in BLMH. That's a "miner" as in "with pick and shovel", although those are not the tools of my trade. Why I'm considered to be a miner is a long story. Suffice it to say that to be in a heavy industrial work environment requires special skills, training and awareness. These types of environments are present in steel mills, refineries, petrochemical plants, power generating facilities, pyroprocessing plants and mines. White collar workers may require specialized training and awareness so they may perform their tasks in these facilities. Upon completing certain types of training they register with our benevolent government and then become miners.

Engineers and programmers may become miners because it's necessary for someone to enter these facilities with the skills to understand and comprehend the industrial processes and the myriad technologies involved. I'm one of those people. The work I do is necessary so other skilled personnel can manage and operate these facilities. The industrial facilities may be quite large, spanning square miles in some cases. It's a challenge to enter one, stay out of harm's way and avoid getting lost. Making a mistake, being in the wrong place or not heeding audible warnings can be deadly. 

Most of these facilities include thousands of intelligent devices and computers from small micro controllers and intelligent sensors to "mainframes." They include machines of all types large and small to carry out the digital decisions, and vast communications networks spanning a variety of wired and wireless technologies. They also include various "human machine interfaces" or HMIs so that human beings may interact with the computers and process controls and make the necessary decisions to supervise the automation. All of this, from sensors to final control elements are assembled into distributed process control systems with various levels of automation. Human beings are an integral component of these systems, but operations is conducted from centralized stations usually adjacent to the processes being controlled. 

I'll be unable to post for a few days because I have a schedule and little time to complete a task at one of these facilities. The current task will only require a week or so. In the past I have had more serious schedules and I've traveled extensively to get to these special factories. They don't build them in cities. They do build them close to the source of raw materials.

Watch Our Smoke
There was a time when a sign in front of such a factory may have said "Watch our smoke." Some years ago such a sign actually existed near Hagerstown MD. It meant there were jobs and employment inside. That sign was gone before I entered the work force and is now something of lore. Smoke became a bad thing and most factories have become something undesirable, and with their closure the jobs have gone elsewhere. Oddly, not all smoke has been banned and we continue to manufacture those "cancer sticks" called cigarettes in this country. The governments puts warning labels on a pack of cigarettes, but tobacco is such a money maker that it is permitted. A lot of people own stock in cigarette and alcohol producing companies because they pay such wonderful dividends, and the government loves the "sin tax."

Back in the 1990's this country, cheered by the population and stoked by the politicians turned it's back on manufacturing and went down the rabbit hole we call the "service economy."  I once heard former Mayor Richard M. Daley of Chicago make a speech that included the phrase "We don't need manufacturing." Perhaps, but critics such as myself knew that those factories did provide good jobs. Nevertheless, the war against the blue collar worker was waged and the blue collar's lost. Now those $40,000 a year jobs are gone, replaced by high quality jobs at Wal-Mart, or in an Apple store or at Starbucks. The politicians have now decided that too many of those "service economy" jobs include low skill, low pay and are minimum wage. Of course, a family of four can't live on minimum wage. That's why we are one of the most educated societies on the planet. But we have also discovered that a masters in liberal arts or PhD in French Studies may not provide a matching job.

We knew there would be factories elsewhere because we would require manufactured goods. At the time I suspected it would not end well for all of us. Most of us would not become architects, software engineers, teachers, lawyers, accountants, doctors, nurses, bankers, airline pilots, retail clerks, real estate professionals, politicians or clergy.  Many of use would not acquire the specialized skills and training for the best jobs and there are also a limited number of positions and so, here we are.

Have Skill Will Travel
It may be difficult to believe, but this is my 51st year in the work force.  If time flies when one has fun, then the explanation for 51 quick years must be because I have been in a lifelong party. Strange, I don't remember it being "fun." I began working in 1963, went full time in 1964 and continue working to this day. A few years ago, one of my physicians made the comment "When you stop, you drop." Now, I don't know if that is true. However, I have concluded, from personal observation that "When you retire, you may become strange." I have been told that I am lucky that I can work; usually by people who don't, won't or can't. Yes, there is nothing like getting up early every day and working, some times 7 days a week and sometimes continuously for 30 or more days. I think that some of us may confuse being able to work with being willing to work, or being healthy. These are not the same. I know from personal experience that one does not have to be healthy to be active in the work force.

So if working doesn't require excellent health, and certainly is not fun, then why do it? Is it simply to earn a paycheck? That may be a powerful motivator and certainly there are a lot of people in this country working in the 60s and beyond for that very reason. Earning an income is a necessity, yet, doing what I do is also about making a difference. So, since 1963 that is exactly what I have striven to do. It has been said that "living the life fantastic" is far, far better than sitting in the stands and watching others who are on the playing field make the decisions and do the deeds. It also seems that many of the fans in the stands include the complainers and critics. Most have to pay to watch. That's not where I want to be. On the playing field one gets paid to play the game. That's my opinion, and it has been since 1967 when I began my first business.

Here's a miner emerging from his workplace.

He was not in an environment that required respiratory filtering at the time this photo was taken, and so he had slipped the mask. They are uncomfortable. Various types of personal protection devices are required in heavy industrial environments. These may include hard hats, steel toed boots, eye protection, hearing protection, fall protection, respirators, special clothing and so on.

I do get into such serious industrial environment from time to time. My companies have been working in heavy industries since 1978, and I've been working in these environments longer still. I took my first business trip on an airplane in 1967. I was in my first production plant during a short trip in 1968. My companies have provided process controls, industrial automation and training. We have done this for engineers, managers and for companies who own and operate electrical generating plants, steel mills, petrochemical plants, refineries, aluminum, gypsum or produce lime and cement, and even NASA. I've provided my services in facilities ranging from a salt mine to the largest NGL Fractionation Plant in the world.

In my spare time I've provided service to others and I am currently a HOA board member. I travel when I can for fun so I can see all of those things I miss when whizzing by in an airplane or whatever, en route to the next project or problem. I enjoy the outdoors and nature. I like to hike, write, bake, cook, train others, play IT guy (that's a hobby in my spare time), to fix things and gadgets of all kinds. Financial planning and project management is something I do every day and I enjoy life with my spouse and oh, yes, I do this and several other blogs.

I have been told that industrial production facilities are oh, so  passé. Yet it seems we just can't buy enough stuff which had to be made somehow. Of course, some of us think that electricity comes out of the wall, gasoline appears magically in a pump at a gas station, Clean water simply flows to our taps and when we flush the toilet, that waste magically disappears. As for that Wide Screen TV, it came off the showroom floor at Best Buy or Wal-mart. that Apple smart phone is made by an American company, isn't it? Perhaps the question to ask is "Who is Foxconn?" the company that has employed 930,000 workers to assemble such products, but this isn't the gameshow Jeopardy.

Reality
Here is the lower level of an industrial facility. Many of these have been around so long that portions of the facility date back to the days when  rivets were used to construct the I-Beams. Some actually have components that may date back to the era of the Titanic, or earlier. The oldest facility I have ever been in had portions built in 1892.

In fact, each of these facilities represent an investment of hundreds of millions or billions of dollars. They are the culmination of decades of building, re-building and improvements.

They may include materials handling conveyors, towers hundreds of feet in height or vast underground chambers. 

Centralized control rooms may be hybrids of 1980's and 2014 technology, and sometimes appear to be a patchwork quilt:

I'll be somewhere for a few days in a facility like one of those pictured above, living the life fantastic and working.