Updated Surplus Numbers

Updated Surplus Numbers
Updated Surplus Numbers: Actual surplus 2018 per audit was $85,163.
Boards 2011-2018 implemented policies and procedures with specific goals:
stabilize owner fees, achieve maintenance objectives and achieve annual budget surpluses.
Any surplus was retained by the association.
The board elected in fall 2018 decided to increase owner fees, even in view of a large potential surplus

Average fees prior to 2019

Average fees prior to 2019
Average fees per owner prior to 2019:
RED indicates the consequences had boards continued the fee policies prior to 2010,
BLUE indicates actual fees. These moderated when better policies and financial controls were put in place by boards

Better budgeting could have resulted in lower fees

Better budgeting could have resulted in lower fees
Better budgeting could have resulted in lower fees:
RED line = actual fees enacted by boards,
BLUE line = alternate, fees, ultimately lower with same association income lower had
boards used better financial controls and focused on long term fee stability

Monday, July 28, 2014

Lakecliffe - Construction Day 1


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The trucks arrived early this morning and work began promptly at 7:00am.  Residents cooperated and all vehicles were moved away from curbs to be cut and the Lakecliffe parking area. The last passenger vehicle in the way was moved at about 7:10am. Several residents, myself included, have put our vehicles on Briarcliffe. I moved mine early this morning.

There were "road closed" signs posted and with good reason. While construction vehicles are moving to and fro, driving could be hazardous.

This is "day one" of several days of curb replacement, which is "phase 1" of two steps in this project.

Management has been on site, maintenance is on site and of course I, because I have absolutely nothing else to do with my life, I am here too! Just kidding; I recently passed an anniversary. I have been working and paying taxes, including SS taxes each and every year since 1963. I have started several businesses, and paid another block of taxes each year as a "corporation." As of a month ago I began my 52nd year in the work force. I love it when millennials complain to me about their hard life. Ditto for anyone who never worked a day in their life. The very idea of someone working for 52 years is difficult for some to comprehend. After all, this is (or was) the "retire early" era. The reality? Save 15% of your income for 40 years and you may be able to retire.

Returning to the Street
Not to say the morning was entirely "blip free." Owners have been told to avoid workers. I do the same because any interruption can increase costs or interfere with worker safety. But not all owners will follow this directive. This morning I admonished a former board member to stop quarterbacking. He was interrupting some workers. I also cautioned him to keep off the streets in the construction zone as this was "extremely dangerous." He said he would comply. As a former board member he fully understands the instructions to owners to avoid interrupting contractors. However, I expect he had to make a report to the group, he has status to uphold in the group as well as an obligation to that special group which transcends all other loyalties and obligations. So it was in 2008-2009 and so it remains today.

Why Were Some Curbs Removed?
Observant residents may notice the differences in some of the curb cuts. Here are a couple of photos to demonstrate:



Why were some removed, and why are larger portions of driveways removed in some cases than in others? There are two explanations:
  1. When the engineer submitted the first draft of the construction drawings to management and the board, I was surprised to see portions of the curb flagged for removal and replacement. These curbs were in good condition. Removal implied drainage problems. The explanation that was provided was straightforward: drainage was, in fact, a problem.
  2. Removing curbs and installing new at a different elevation means some driveways or parking areas will be raised or lowered. However, the drawings did not indicate exactly how much driveway to remove. I expressed several concerns: a) A step change in elevation might be created and that would pose a problem for vehicles entering or leaving the driveway or parking area.  b) The paving contractor should be provided specific instructions as to how far back to saw cut the existing driveways. c) The driveways needed to be cut back far enough to provide a reasonable slope for vehicles. d) We certainly wanted to avoid the possibility of water flowing in the wrong direction; some driveways in our HOA are nearly level and do have a slope of less than 2%.
I discussed this with the engineer and management. The engineer's explanations were provided to the board with my concerns and recommendations. As a consequence the engineer was directed to shoot the elevations of the impacted driveways, determine the actual elevation and slope changes, determine reasonable height changes and come up with a solution of where precisely each driveway or parking area was to be cut. This information was to be then incorporated into the plans. And it was. So larger portions of some drives will be replaced than other.

The costs? Some are apparent. However, because the board in 2010 ignored my warnings and because this project was further delayed there was additional inconvenience. It took additional time for replacement boards to get up to speed, come to a consensus about the problem, award an engineering evaluation and then award the contracts for replacement. Well, the fact is, there are trade-offs. It may cost our owners more today. Why? Because we are tearing up some driveways replaced since 2008,9,10. That's why. On the other hand, delaying this project by a year or two may have saved owners some money.  If the value of this portion of street is $150,000, then delaying a year and thereby delaying expenditures might have saved owners about $7,500 to $10,000 dollars, or about $30 each. Was all of the aggravation worth this amount? But that's what we get when the primary driving force is "to keep fees as low as possible." Could this situation have been avoided? What do you think? I faced this problem "head on" in 2010, but I was alone. As I say time and time again, HOAs get the board they deserve, which is to say, the board the owners elect. . 

Why Were Curb Changes Required?
One of the primary destructive forces for asphalt is standing water.  The asphalt is placed to match the edge line of the curbs. It was discovered during surveys of the street that the existing street did not provide sufficient slope and that means improper drainage toward basins. 

To alleviate this, the elevation of some sections of the curb needed to be changed. The street elevation can then also be changed and a minimum 2 percent grade to the storm sewers becomes possible. The asphalt is poured to match the curbs. 

Owners at BLMH, or anyone who reads the newsletter is aware of some of the drainage issues which have been addressed by several boards in the last 5 years. Owners who attend HOA meetings regularly have heard my monthly reports of 4 to 12 pages in length and have been provided more information. 

Many drainage problems can be traced back to the original construction. The City of Wheaton approved all construction and drawings. So what went wrong? I'd hazard a guess that some aspects of this HOA were not built to the drawings and specifications. The inspectors for the city failed to do their job. The builder took short cuts or failed to follow the plans. 

The City is responsible for some of this, but they are not alone
The City of Wheaton created a situation which reverberates to this very day. This street is an example. We have buildings at such an elevation that some driveways are nearly level. So how is a HOA to replace a street and curbs and yet get a minimum slope for proper drainage? The answer is, it can't. 

If a driveway has a 1% slope, any error by the paver can exacerbate the problem. That's what happened in 2002. Lowering streets to fix this problem may require more storm water entries and basins. But then the HOA has to meet the elevation of the city street at Briarcliffe. The costs go up, and up, and up. 

The fundamental problem? The street elevations are determined by Briarcliffe Blvd and the elevation of the buildings; most notably the garage floors. If this isn't rocket science, then what is it? It's Damage Control. The angst faced by our owners about the failure of their fireplaces has one possible benefit. It brings home to nearly all owners, on a personal level, the problems faced and addressed by many boards in this HOA since day one. Some owners have been aware of these issues. Some owners have done everything in their power to ignore these issues. Many of these problems were caused by the City of Wheaton which failed in inspections and reviews and allowed these problems to be "cast in concrete."

Meanwhile that small group, which is completely oblivious to reality, demands "fees as low as possible" because "we all know our fees are too high." There is absolutely no doubt in my mind that the board of 2008-2010 made the callous decision to kick the can down the road to future owners and to future boards. 

I tell people I'm like that guy during the parades. He walks at the very end of the parade, when most of the revelers have already begun to pack, the politicians are picnicking with their supporters, and he carries a broom and a wheeled cart so he can do the cleanup. 

Here are a few more photos take at about 10:00am:










2 comments:

  1. Looks expensive.

    ReplyDelete
  2. How long are you going to remain mad at the 2008-2009 board? What on earth did they do to you anyways? They sucked, ok, whatever....their Neighbor's Club was a dumb idea. Fine, we get it.

    It's been over 5 years now, time to move on.

    ReplyDelete

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