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

Saturday, May 30, 2015

Water Main Replacement - Observations. One, two, three!

One of three mains that were replaced

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Three water main replacements are in, of which two are complete. One remains to be pressurized. All in all, the project has gone well. I had some concerns; this type of project has a real potential for breakdowns and problems. While it is useful to be aware of the potential for problems, it isn't useful to obsess or worry others needlessly. Owners who have "issues" with these types of projects should come to HOA meetings and learn  more about their association, and express their opinions to the entire board in a public forum. Owners or residents who simply cannot tolerate these types of problems shouldn't be living here, period.

I took 100+ photos over a period of three days. I'll present some to the board during a HOA meeting.

Digging up existing water mains does pose a problem. For example, we did not know where the building services are tied-in to the water mains. The contractor did not know precisely what would be uncovered after the digging began. We knew this relatively small project would directly impact 28 units (8.3 percent) and could require water interruption for more. Of course, trenching across the main road of this HOA at three locations meant that a majority of our units and residents would encounter traffic delays or would be re-routed at various times as the work progressed. This required additional communications with residents, although residents on Briarcliffe or Harrow Court and even the North-West end of Lakecliffe would not be impacted, or aware of what was going on. In fact, one resident at Dover/Plymouth, on encountering a workman directing that she turn left and "go the other way" on Lakecliffe asked "Can I get out that way?"

That is one of the challenges; residents who don't read the notices that are posted, or the newsletters, who don't know the arrangement of the streets, who don't use "Google maps" or "Bing maps" or the HOA website, or read this blog, and so they are generally unawares. Now, it is beyond the scope of this post to go into the issues faced by an HOA with oblivious owners and unawares residents. Combine this with the fact that 97% of the owners in this HOA don't attend monthly meetings (excluding board members).  You may get the idea that we have a communications problem. But the board can't make people communicate responsibly and reading and attending is part of owner responsibility. Yet, I was told by one owner who had a problem with the water interruption that "he" was "too busy" to read the notices, or newsletter and was unaware of the HOA website. Enough said!

Of course, there are anticipated, tangible benefits to this project. Those benefits are part of the "cost benefit analysis" but I would also say that the potential for "disruption" to residents is also a board consideration. What occurred was what I call "interruptions." I would prefer our residents and owners experience interruptions over "disruptions." Is there a difference? Yes, there is. An interruption is a temporary lack of water. By temporary I mean an interruption during daytime hours, after many have had their morning shower and breakfast and before everyone prepares dinner. A "disruption" is a water outage that lasts overnight, or for days.

An interruption is having to use the other entrance to the complex, or the requirement to move my automobile before 8:00am and then through the day, walk 100 feet because "my" cul-de-sac is closed and my automobile is parked on Lakecliffe. A disruption is closing the street for days.

An interruption is a water main break which occurs and requires that residents use a 5 minute longer driving route, or a requirement to drive to a less convenient parking spot because the road is blocked by workers. A disruption is a water main break in the winter, which freezes, and/or shuts off water for days, and costs the HOA many tens of thousands of dollars to repair, closes streets, and so on.

A disruption to one's personal finances is a special assessment.

An interruption is another three days lost performing my duties as a board member, closely monitoring this project instead of doing my work.

I had legitimate concerns about the potential for interruption and disruption to residents, both because of temporarily closed roads and water interruptions. I expressed these concerns by asking questions about sequence, schedule, duration and shutoff, traffic patterns and control, etc. In other words, I wanted to establish as much certainty as possible, and in asking those questions, determine potential for problems and uncover any hidden flaws in the plan. In doing so, the plan might be improved. This is one of the duties and responsibilities of a board member.

One outcome was revising the official association website to make the "home" page a bulletin board for important notices. The board had discussed this several times, and this was the opportunity for action.

This was also a trial run for the communications and logistics for the replacement and repaving of Lakecliffe from Salisbury/Thames past Gloucester, Dover/Plymouth and to Briarcliffe Blvd. That project is imminent and will occur this year. It will require the use of temporary traffic patterns, interrupt street parking while curbs are being replaced, will close Lakecliffe at various times and will require daily changes to traffic patterns as workmen progress from one end of the street (Thames/Salisbury) to the other. Nor will this be done in "one pass." We'll be dealing with stripping, base and asphalt. Three passes? It will have the potential for disruption.

Doing the street project in 2015 was not part of the "plan" and should not have occurred until 2022. But the condition of the street "is what it is" and owners who complained about a "minefield" on the other end should be pleased; we're averting another minefield.

But I expect the complaints will come rolling in.

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