Kidde Disposable Fire Extinguisher Recall

A recall has been made of two styles of Kidde disposable fire extinguishers. There is additional information on the Kidde website and a link is included in this post.

From the Wheaton Weekly November 8, 2017:

"State Fire Marshal Warns of Fire Extinguisher Recall

The Office of the State Fire Marshal warns of an important recall notice for Kidde brand fire extinguishers due to a failure to properly activate during a fire emergency. The recall affects 134 models of Kidde fire extinguishers manufactured between January 1, 1973 and August 15, 2017. Affected consumers should immediately contact Kidde for a free replacement fire extinguisher. Contact Kidde toll-free at 855-271-0773 or go to www.kidde.com and click on “Product Safety Recall” for additional information."


A summary from the Kidde website, Kidde Copyright © 2017. All rights reserved. The information below is provided as a public safety notice. Go to the Kidde website for complete information and how to identify the affected extinguishers and what to do.

| Product Safety Recall

"Summary: This product recall involves two styles of Kidde disposable fire extinguishers: Plastic handle fire extinguishers Plastic push-button fire extinguishers This Recall does not include Kidde Professional or Badger branded fire extinguishers. Units with metal handles/valve assemblies are not included in the recall." Read the Full Announcement on the CPSC Website (Opens in a new browser window) Frequently Asked Questions (Opens in a new browser window) Here's the Kidde website recall link: https://inmarmarketaction.com/kidde/Kidde284US/

Sometimes Twice is the Charm - Budget Passed

BLMH had the second election last night. This time we did achieve a quorum and so the candidates were elected. This allowed the owners to make the decision, rather than be a board of appointees. We now have seven board members, the first time in a few years.

About 20 owners attended the meeting. We didn't repeat the presentations for the first "annual meeting" because this was a two part meeting with the second part the normal business monthly meeting. So any owner who didn't attend the September annual meeting missed those presentations.

I'm pleased that the owners decided to vote in sufficient numbers to have a valid election. Frustrating? Yes. This redo added a lot of work at a time that the association is attempting to finalize budgets, outdoor maintenance and repairs, and plan for 2018. As I stated in an earlier post, it must be wonderful to live in La-La Land; that's a magical place where people simply show up to do the work as volunteers, while the majority pays their fees and sits back. Of course, it could be worse. The vast majority of our owners are financially responsible and do pay the monthly fees in a timely manner. So we can be thankful for that. 

As part of the business meeting the proposed budget was passed. Prior to that owners were asked if they had any comments and there were none from the floor.

I've begun working on project lists, task agendas and financial plans for 2018.

Wharton on Leadership: Why Leaders Are Made, Not Born

Over at the Wharton School of Business they have posted an article about Leadership. That is something all board members find themselves in a position to provide.

We sometimes think that leadership is a trait. It is something we are born with. The article is entitled "Why Leaders Are Made, Not Born".

"Inspired by her own struggles, Harvard Business School historian Nancy Koehn turned to figures from the past who overcame adversity to leave a lasting mark on civilization. She learned that true leaders are those who can forge through impossible odds with intelligence, compassion and resilience. Koehn has captured the stories of five inspiring historical figures in her book, Forged In Crisis: The Power of Courageous Leadership in Turbulent Times. They include Abraham Lincoln, who presided over the United States at a pivotal time in its young history; Frederick Douglass, an abolitionist who escaped slavery to become a writer and a statesman; Dietrich Bonhoeffer, a German clergyman who became a double agent against the Nazis; Ernest Shackleton, a polar explorer who survived a shipwreck on an ice floe; and Rachel Carson, a scientist whose work sparked the modern environmental movement. Koehn recently joined the Knowledge@Wharton show on SiriusXM channel 111 to discuss her book and why true leaders are made, not born."

Here's the link to the article:

Wharton: Why Leaders are Made, Not Born

Budget Improvement 2018

There are many challenges to accomplishing budget improvements. It requires the control of budgets which is not easy in a large and aging association. Performing maintenance and infrastructure work in a timely and proactive manner has the potential of reducing future breakdowns and future maintenance costs. It also spreads these costs more equitably among owners, both today and in the future. Annual efforts to control costs with no reduction in services is also essential.   From time to time boards may be inclined to handle budgets by "kicking the can down the road". This my be accomplished by delaying certain maintenance and projects. Since 2010 it has been my position that such delays are a critical mistake. I am of the opinion that once an association falls behind, it becomes difficult or impossible to catch up. This is particularly true if associations don't acquire and build the necessary funds.

These budgets are the fuel to accomplish all things in running the business of the association. Money is a tool. It must be used with caution and for good purpose.  Of course, when an association fails to accumulate the funds necessary to perform infrastructure work or repairs, there are several approaches:

1. Delay work until the required funds are accumulated.
2. Increase fees to allow the accumulation of the required funds.
3. Borrow money to fund the work.
4. Simultaneously do some or all of the above. 

The trend line in the following chart indicates that if the association had continued on the path followed from 2001 to the present day, our budgets would be 10.2% higher today than they are. That also means that owner fees would be 10.2% greater than they currently are.

Fees from Budgets 2001-2018

The association prepared the proposed budget for 2018. This was reviewed and discussed by the four board members during the October association meeting. We currently have four board members because insufficient owners voted during the annual election. The election is being re-run and we'll see if sufficient owners become involved to elect the three candidates. That would give the association seven board members. However, the budget process cannot wait; it must be done in a timely manner.

The budget process for calendar year (CY) 2018 was straightforward. The association projects a surplus to the Operations and Maintenance budget for 2017. That's helpful as it does indicate that the budgeting for 2017 was conservative and it also validates the budget approach and controls used by the association. Those numbers assist the board in identifying problem areas.  However, one must be cautious.  A lot could happen during the remaining three months of the year.

One of the issues our association has is determining actual year end numbers based upon September 30 books. There is a certain amount of guesswork involved.  In general boards would much rather achieve a surplus than a shortfall. Any surplus will flow to reserves as of December 31, 2017.

The association has sent the proposed 2018 budget to all of the owners. There were three owners present for the budget meeting.. One of these owners is a former treasurer and Architecture & Maintenance director for the association. He made the observation that the board is doing a good job with the budgets.

It has taken some years. As can be seen in the chart at the top of this post the annual budgets stabilized in 2013 at about $1,320,000. Boards have made some effort to stabilize costs while performing maintenance and infrastructure work. As a consequence the projected budget for 2018 is about $1,350,000. In other words, the association budget for six years 2013-2018 has increased by about 2.25%. While this is a good thing, it also must be acknowledged that budgets did increase about 59% in the 10 year period 2001-2010 and about 82% overall since 2001 to the present.

Keeping budgets in check has allowed annual fee increases to be lower.

To aid future boards, the association president has requested that the budget add a column for "Actual 12/31/2017" after the December 31  books are closed. Currently the budget includes the following columns:

• Approved 2017 Budget (approved in 2016)
• Year to Date (YTD) 9/30/2017
• Projected year-End 12/31/2017
• Proposed 2018 Budget

This column will be added:

• Actual year end 12/31/2017

It has been discussed that it would be preferred to do the budget after the end of the calendar year. One board member has argued this isn't possible. It would require adjusting fees at an effective date other than January 1. For example, from April 1 of 2018 to April 1 of 2019. That would seem to be merely a bookkeeping and billing issue.

Thank You, Mike Madigan!

Some Recent News Headlines:

"Since January 2007, the labor force in Illinois has decreased by 300,000. "(US Department of Labor).

"Reeder: Illinois is losing jobs and people. Why make the problem worse with a tax hike?.....The politicians got us into this mess by spending too much and making grandiose promises that the state just couldn't afford. Now, they want you and me to pay for their irresponsibility." (Chicago Tribune).

"Illinois, once a jobs magnet, is losing its pull to lure firms, workers.....Illinois, once an industrial leader, has become an afterthought to captains of industry planning to make sizable investments of new factories or research facilities. Wisconsin, it seems, is the new Illinois. Before long, many of you will be commuting north to work as companies with long pedigrees here head for the border or new firms plant their roots in Wisconsin within striking distance of Illinois." (Lake County-News-Sun).

"Illinois loses 3,000 manufacturing jobs in August, worst since recession...In one month, Illinois manufacturing sector lost all of the jobs it had gained in the last 12 months, marking one of the worst employment reports for the state's lagging economy since the recession. A preliminary report released by the Illinois Department of Employment Security shows August saw 3,000 lost manufacturing jobs. This loss of employment is the worst month in Illinois since fall of 2009. The unemployment rate also rose to 5 percent." (Illinois News Network)

Illinois hearing on why state lost Foxconn deal not expected to talk state business climate....There’s a difference of opinion on why Illinois loses businesses to other states, but that won’t be the focus of a hearing next week to evaluate why Illinois lost tech manufacturer Foxconn’s North America location to Wisconsin. A House Government Transparency Committee hearing originally scheduled for last week when lawmakers were in Springfield for veto session had the subject line, “Why Illinois lost the Foxconn deal.” “With the budget that was passed, it’s more borrowing, more spending, more taxing,” Halbrook said. “It didn’t do anything to help the business climate to grow jobs, to encourage new employers to come in and hire more people.”" (Illinois News Network)