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

Tuesday, August 4, 2015

Front Lawn Improvement - After Removal of Trees, etc. - Example



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Continuing an earlier post. If we say that our landscaping is one of the primary reasons people purchase in this HOA, then that's worthy of a program and some air time. Some people can't understand why things are the way they are, or why it takes so long to deal with issues. Perhaps this post will clarify.

The HOA is now continuing drainage work and cleaning up after the death of a substantial number of trees. This post includes some examples. The primary one is an extreme case. It is not necessarily the worst on the property nor is it the only such example. In some cases trees have been removed for four years and we've yet to get to the drainage work so sod, etc. can be planted. Maintenance continues to catch up on drainage improvements required by new roofs.

Some years ago, I stated to management that it was difficult to impossible for a HOA to catch up when it falls behind. Management agreed. We were discussing finances (funding for reserves) but this also applies to many other aspects of the HOA. Maintenance issues, if allowed to decline create terrible pressures.

This following example is the aftermath of the death of three large trees, all in front of a single building.  Most tree removals leave a scar which can be corrected with removal of chips after stumping and replacement with topsoil and turf, or plantings. Planting can be done later, after turf. Turf is an inexpensive planting. After turfing, the area can and probably should be revisited and a decision made to put in plantings, or new trees.

At the location which lost three trees, after removal of one dead spruce in 2012 a new tree was planted in this location but it died in 2015. Then two other large trees died.

When a series of closely spaced trees dies as these did, the consequences are very noticeable. Suddenly those berms look odd. Because the berms contain the remains of stumps and other organic material, they will become mis-shapen. The wood chips which remain mark the grave. This will require substantial work to bring back to normal.

At this particular building that was the extent of the work that was done to deal with the removal of the tree. This building was one of about 17 that yet need a new roof and about 25 that will get some additional drainage improvements. Planting a new tree was premature.  I knew what was coming and so I simply shrugged. But some owners weren't happy and I suspect board members feel pressure from time to time to show some performance. Better to plan long term and explain what we are doing is my mantra. But now that time is past and any such planning would require a willingness to state to owners the details. So boards may fail on two counts; a lack of a plan, and an unwillingness to tell the owners what the plan is. I'm also really clear that this HOA has not had a plan prior to 2010.

Here's one way to look at this. If a facility that spends between $1.2 million and $1.6 million per year knows that all roofs will be replaced within 10-15 years with drainage improvements, what's the appropriate leadership tack? The first roof in the series was replaced about 15 years ago. That building got the full treatment, including drainage improvements. So why wasn't this incorporated in the planning process? It can't be blamed on a lack of continuity in leadership. We've had at least two long term members in leadership positions for many years.  I've never gotten a straight answer about this.

Now, the reader might ask "Why wasn't the front lawn of the building in the masthead photo simply regraded in 2014?" There's a really simple explanation. This HOA is attempting to catch up with a variety of projects which were either ignored or pushed back for a decade. In other words, it has taken four long, uphill years to get this HOA to where it is today. It will take additional years for maintenance to get this done and catch up. After attempting to do some of this with a landscaping contractor, I gave up. Simply not responsive enough and we actually had to do one front lawn twice, after deciding to move to turf. Yes, it needs water, but it doesn't need weeding. Now, if I want to spend $20,000 on a lot of rock and plantings in a small area I know where to go. If I want to get the drainage work completed with alacrity, I also know how, and I am. However, there is simply too large a backlog and the board isn't about to spend $300,000 to get the job done in a year.

Other reasons for a failure to get this done in 2014 was the roofing project, which boards pushed back for about 8 years. Another is the drainage work required by new roofs. Last year, it was a major street replacement which had failed about 15 years earlier than expected.  Boards handled that by leaving it for me to deal with. BTW, that's why I have a beef. I've said that since I've been on this HOA board I've spent nearly all of my time "cleaning up the messes made by others." That's not a joke or an idle complaint.

Boards simply ignored the drainage problem for about a decade. Consider that with a little planning, this work could have been done in advance of the roofing project. But it wasn't because boards, comprised of a variety of owners including some really seasoned veterans simply ignored the problem. So today, we need to do work at dozens of entry ways. Some have been waiting since 2008-9.

Currently, about 50 locations need work because of the removal of trees. Some is extensive and some are not. Some of this was not expected, but most was. Trees have been removed because of the EAB, old age, death, disease and so on. The building later in this post has been selected by management and maintenance/architecture to get a new roof this year and the board issued an approval. The existing roof on that building is 21 years old, but had a projected life of 18-20 years. That roof is typical of the remaining (old) roofs on the property. I think the oldest is approaching 25. My building is 22 years of age and is not yet on the list for replacement (probably 2016 or 2017 assuming we have a board in place that will get the job done).

Here's what it looks like after a large tree is removed:

But in recent years we've lost many trees, some small, others medium and some large. These include pines, spruce, willows, ash, birch and ornamentals. I have taken thousands of photos over the span of 9 years. I also have taken extensive notes, surveys, etc. This is not always a good thing because I'm really aware of the condition of the property as well as shortcomings, problems, mis-steps and so on:




Here's the subject building with two large dead trees straddling the driveway. It has an extensive berm across the entire front of the building: 


One year later almost to the day, it has been cleaned up and re-sodded.  This is not the best time to do this as extreme heat may kill the sod. But this HOA has a short time each year in which to accomplish this type of work:


The next photo depicts this same location shortly after the removal of three large trees. A small tree was planted in 2011 to replace one of the three; you can see it to the left of the photo. Then the spruce died; it had already been removed in this photo. Later in 2014 the remains of the ash to the left of the driveway were placed on the berm prior to removal. 

The small tree is behind the remains. That tree died this year; it had survived for three. It was planted on top of a berm which included a pile of wood chips left behind after the removal of a large tree. 


With the death of the small replacement and a new roof scheduled this year, it was a necessity to remove some of that berm to allow water to move away from the building entrances and to the street. It was also the final opportunity to do so. After removal of two stumps in the berm in the photo above, there was a lot of dead or dying organic material in that berm. 

The garage to the left will also receive a new driveway and the slope will be improved. Both entrances in this building will have a walk installed, which is part of the roofing project and/or driveway project. (The walks were installed in June of this year, in anticipation of the other work.)

Because of the new roof, this property will also have new and more extensive gutters and relocated downspouts. Without drainage improvements, water from these gutters would pool against the building or at the entrances. In some cases where drainage improvements were not made, we have had water actually raise to such a level against some buildings as to enter units and/or garages.

Here's the way the area looked about a week ago after the tree roots had been cleared, chips removed, excess soil removed and preliminary grading was completed. The next step will be to haul this detritus and put in topsoil.


A week later after grading and so on, this is how this location looked today after sod had been laid:



This is the problem in about 50 locations. Most are not as severe. In some cases after removal of the tree and chipping of the stump the HOA or residents have added plantings. I'd say these need to be improved but maintenance is swamped at this time:



How does this work? Here is a typical chronology. Some boards do only the first or second step (remove the dead tree and then follow up with removal the stump). After that, it's all up for grabs. After the dead or diseased tree (or trees) have been removed, then the stump remains can be reduced to chips. After that, the board has several choices. Leave the chips in place and move on, or do remedial work. Sometimes the board moves on. That's the lowest cost, easiest way to get the job done.

I prefer to do it completely the first time, rather than leaving mine traps for future boards and future owners who will then have the unpleasant surprise of paying for these problems. Yes, this really is avoidable. But there are other factors at present, and there have been for about five years.

My problem is the extraordinary effort and cost of cleanup. After passing the buck and avoiding solutions since 2000, this HOA can't continue the status quo. I've been the lucky winner with the broom following the parade. I've not been the most popular here since 2008. Some people don't like the fees, others don't like the messes. Here's the reality. I didn't create these problems. I'm merely the janitor. But I can say after eight years that some don't like reality or anyone who points it out. I've concluded that some would prefer to live with their head in the sand.

Here is a location which was regraded last year after several large trees were removed. This is the way it looked after chips, roots and so on had been removed. Then topsoil was brought in and finally sod was put in place. Multiply this by 50 and you can get some ideas of the magnitude of the problem facing the board.  If we want to keep fees low, it is argued that the proper approach is to do as little as possible. I disagree with that and I have the evidence to back my position up (our current fees include a substantial amount required to deal with past failures to collect necessary fees). That is not what occurred in the following photos.


Here's another view of the area in the above photo, facing the opposite direction. This is about one year later. It will take a few years to get the grass to grow well, and in many areas there is additional watering required.




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