Landscaping is a complex, expensive issue

In the period Sept 2010-Sept 2018 Two common area decks were replaced, a bridge and gazebo. All three streams underwent major repairs, benches replaced, hundreds of lawn repairs were made, and hundreds of dead and severely diseased trees were removed and more than 100 drainage problems were addressed.
All required landscaping work.
The above is one of my diagrams April 7, 2013. It was provided to the board
as part of my many property condition reports.
Streams are in blue.

 

Typical rolling berms in our Landscaping

This post will look at the maintenance of landscaping and some of the work completed 2011-2018. I've posted a few photos as examples. This post looks at all of the contractors involved in either creating, destroying, replacing and maintaining the landscaping.  Those contractors operate under a variety of contracts and have differing specialties and skills. "Destroying" is simply a consequence of things like water main breaks, construction, and so on.  Lawns can be damaged and are from time to time.

It is entirely up to the board to determine and authorize the replacements and repairs to damaged landscaping. 

The association covers about 40 acres, which includes 336 units in 44 buildings. The property encompasses one lake and part of another lake. (Note 1). There are three man-made streams with about a half-mile of concrete walks and asphalt streets. Within the boundaries of the association property there are about 15 acres of rolling, grassy turf.  The slope of the property and grading is such that there are hundreds of mounds covered with grass, and each of the streams flow naturally downhill by gravity to a small holding pond. The water collected in each pond is pumped continuously uphill to refill the stream. The property also has (or had) thousands of shrubs and hundreds of trees. The many decisions of how to maintain this and how much money is to be spent doing so is determined by the board. Our ornamentals are about 43 years old, shrubbery has been decimated by a voracious beetle and our ash trees were destroyed by the Emerald Ash Borer.

To deal with this, the association has a Replacement Fund which is accumulated as reserves to provide for annual expenditures to deal with all of the aging infrastructure on the property. That includes landscaping.  Landscaping includes the trees and shrubbery and other plantings. The replacement fund is also required for the streets, all exterior lighting, building entries and halls, driveways, roofs, concrete walks and streams, common area decks and limited common area decks, water mains, fire hydrants, street lighting, etc.

The Role of the Board

The board makes all decisions. Some owners don't realize that, and some boards have been inclined to use management as a shield, perpetrating a myth. 

Regarding landscaping these decisions include tree maintenance, landscaping related contracts, the types of plantings, dealing with the scars left behind after removal of shrubbery and trees,  and so on.

 The board determines where and when to spend the replacement fund/reserves; boards will spend every dollar collected from owners as fees.  Those fees are allocated as approximately 30% toward the Replacement Fund and 70% toward the Operations & Maintenance annual expense (O&M).  It also determines the schedule and priorities for maintenance, which is why our degrading Dover and Plymouth streets had not been dealt with.

The board oversees and directs the experts and contractors.  To provide such direction the board should monitor all of the issues and be well versed in the matters of the association. This requires boots on the ground, but in my experience, most board members don't do this, other than to walk their dogs.

I worked to precision and I can say it was really difficult to be with people who cannot get that. I was not the Landscaping Director and landscaping was never my board responsibility.  I held different positions. As Maintenance Director and Architectural/Projects Director everything impacted landscaping.  I also served a president, and did the newsletter for about 6 years. I was completely dissatisfied with the response of the board to landscaping issues.  I did something about it. 

One board member complained that I was spending "all of the money". Oddly, I was the one who had to complete the roofing project which began during that individual's reign as president. I was also the one who had to deal with the drainage problems that roofing project created, and finally, I was the one who spearheaded the replacement of Lakeliffe.  That street, too, was failing, only about 5 years after it was replaced during the reign of that president.  Etc. Etc.

The board discusses the issues which lead up to decisions during the open part of a 2-hour monthly association meeting. The board does the budgeting and sets the fee levels to be paid by owners. Motions are made and votes cast after open discussion in view of the owners, after discussion with management, the review of reports, surveys, legal, financials and any bids obtained by earlier board directive.  

Upon voting the motion either passes and is carried, or not. 

Because of the complexity of the property, the association board assigns the lead to board volunteers, although this does not remove or absolve the remaining members of board from responsibility.  Keep in mind that in all matters each board member votes "Aye" or "Nay" or may abstain from a vote. The point person for landscaping is the Landscaping Director.  However, other board members are also involved and include, at a minimum:

• Landscaping Director
• Maintenance Director
• Architectural Director
• President
• Treasurer

The scope of things that impact the condition and costs of maintaining the landscaping include:

• Condition of Lawns
• Condition of Trees
• Condition of Shrubs
• Projects that impact the grounds
• Drainage issues
• Water main breaks

Board Responsibility for the Outcomes

The condition of the landscaping is determined by the decisions of the board, by what happens on the grounds, the quality of the replacements and plantings, and the care provided. Board response to water main breaks, fire hydrant replacement and dying and dead trees and shrubs determines the appearance of the landscaping.  In the past some boards spent $20,000 per year on partial application of mulch, which promptly degraded and had to be replaced each year. That dollar amount could only do a portion of the property each year. Some boards focused on the North and South entries on Briarcliffe Blvd.  Some boards spent additional funds on the Landscaping at 1825-1827 Briarcliffe Blvd, or at one of the ponds.  It is not required that boards provide owners with reasons for their decisions. The owners assume the decisions are made by a board comprised of fiduciaries are made in the best interests of all owners.

If boards don't publish these decisions in the newsletters, many owners will be unawares of the decisions. Owners who live remotely may be particularly disadvantaged.

To maintain the grounds requires long term financial planning. The reserve studies are a significant and important part of the planning and determine the Replacement Fund.  These studies must be frequently updated with new knowledge and the current reality. Finances change from time to time and this does also have serious consequences. The Illinois Condominium Act places boundaries upon what a board can do and the fee levels for building the replacement fund.  It is a fact that boards will spend all of the money collected. The challenge is to spend it well.  There are differences of opinion about that, and at times personal agendas and belief systems may come into play.  

Analysis precedes action 

I was interested in root cause analysis and determining the weak links in the chain. To do so required many, many reoccurring surveys, lots of analysis and so on.  Then feasibility studies were undertaken to determine if causes could be eliminated and at what cost.  Most of this was prepared by me and most surveys were made with the aid of management and the occasional accompanying board member. Additional attention was paid to identifying potential failures that could result in expensive breakdowns. As a final step, reports were submitted by me to the board during the monthly association meetings and via email.  There are thousands of reasons why fees moderated when I achieved a board position. 

A chain is only as strong as the weakest link

Let me be clear, I am not an advocate of "change for the sake of change", nor am I promoting appearances.  

For example, the newsletter under my direction was never about entertainment and the association is not a social club.  In an association in which fewer than 10% attend any HOA meetings, and some don't have reliable high speed internet access, the newsletter and my presentations during the annual meeting were constructed to inform. I am interested foremost in methods that get better results for our owners and I did take my duties as a fiduciary very seriously.

For board members, who are entrusted with making the decisions to spend more than $ 1 million annually on behalf of their fellow owners, this is even more important. 

There will always be problems. Unforeseen events can occur.  But the question must be asked "Why weren't these problems foreseen?"  Asking that question is not about blame and guilt and I can state that I saw board members pile that upon other board members, sometimes with relish. Bullying is inappropriate. 

The wokes say "be nice" after board members such as myself were knifed. even by some of them.  

I say, be honest and forthright, particularly in communications, don't manipulate the owners and then after doing so, don't hide behind your wokeness.

Poor decisions may be made. We should take responsibility for our actions and clean up any mistakes we make, and learn from them, so as to avoid repeating them. In doing so we can take corrective action. What we learn should be passed on to those who follow. We can convert hindsight into foresight.

It is about is better control of the condition of the landscaping, the infrastructure and the costs to maintain. Controlling costs while maintaining yields the lowest possible fees.

I am not a dreamer, nor am I a fatalist. A realist is somewhere between and I do know my limits. 

As individuals we are masters of our own destiny, we should take responsible actions to manage that destiny. As owners that means monitoring the board and voting during the annual elections.  As individuals it is important that we get the necessary, ongoing education to deal with technology and continuous change. In doing so we are better able to succeed in our endeavors, and deal with the consequences of our actions. 

Good decisions and good maintenance can control fees

The Role of President - Oversight and Leadership

One of the duties of the board president is to set the agenda, keep an overall view, and coordinate maintenance and landscaping directors of the board, as well as involve the treasurer in decisions. Everything costs money. Any maintenance uses owner fees, even if it is imbedded in maintenance contract hours. In the contract there are only so many hours available each year.  

After achieving a position on the board I became aware that at times a board would expend more maintenance hours in a year than provided by contract.  This can occur and certainly the work needed to be done. That was not the issue.  The issue is how boards handled that. 

For example, if there were extreme weather and ice dams on roofs in December, it did have to be dealt with. During extreme snow events, dormer windows might be buried in snow.  This had to be cleared to prevent damage to units when the snow melted. Planned hours could be exceeded and at times were exceeded.

Extreme snow - View from partially buries dormer window

I discovered that some boards decided to roll the excess hours used into the next year.  Imagine a new board discovering in January that they didn't have the maintenance hours available that were expected. That may have helped the budget for the year in which the overage occurred.  However, it reduced the hours available in the following year. New boards were blindsided by this. 

I don't recall any discussions among the board in front of owners in which this directive was issued. 

For example, if the maintenance contract was 4,000 hours and an actual 4,400 hours were spent in a year, the board had two choices: 1) Pay for the excess hours in the year in which they were expended, or 2) Roll the excessive hours into the next year, reducing the hours available. 

Of course, using this example, if a board did roll the hours into the next calendar year, it would reduce the maintenance hours available from 4,000 to 3,600. 

If a board decided instead to pay for those additional hours, there were several choices: 1) Review the budget to see if there was an excess. If not, then 2) borrow short term from the reserves (the Replacement Fund).

Water as an example; Landscaping and stream consumption

In 2012 the water utility bill was about 50% greater than budgeted, about $9,000 more.  The board increased the budget for the following year. In 2013 the water utility bills increased again. They were about 6% greater than budgeted, about $2,000. For the next year the budget for water/sewer was increased by more than 10%.  In 2014 the water consumed was about 30% greater than that increased budget, about $10,000.   Utilities were absorbing much of the O&M fee increases being levied by the board. The rest of O&M increases were attributable to material costs and contract costs.

What was going on with water?  One of the budgeting tasks I took on in 2011 was identifying the possible forthcoming utility price increases and incorporating them into the budgets.  I was not president at the time.  I saw this as simply a necessary duty as part of the budgeting process.

Nevertheless, water consumption was increases, as were the bills. This caused some hand wringing among the board but it was merely a blip in the finances and represented about 1% of the O&M budget.  Of greater concern to me at the time was how was it possible that the association was using so much water?   One obvious source was the poor condition of the streams and ponds. These are filled using city water.  Large cracks and porous bottoms allowed substantial water to escape, which is automatically replenished as the pond level decreases. (See the post of October 4, 2021). Furthermore, water consumption would increase as used for trees during droughts and watering of new grass and sod.  From a landscaping perspective, it is better to let grass go dormant during periods of low rainfall.  However, seed, new grass and sod must be watered.

The best way to deal with the stream issue was to repair and replace the worst sections of the streams.  Which is what was done after completing the roofing project, after replacing Lakecliffe and after replacing about 300 ft. of water mains. 

The Treasurer and reserves 

In fact, the treasurer of 2017-2018 was instrumental in getting this done and did ask "Why can't we finish this in 2018?"  Yes, that would reduce the amount in the Replacement Fund.  Earlier boards had serious discussions about what was a realistic minimum to carry, so there was no need to reinvent that wheel.  However, minimums were discussed, again. The earlier discussions occurred in 2011 and 2012.  The discussions were necessary because of the condition and age of roofs, and the deterioration of Lakecliffe, water main repairs, and the impact of these mega projects on the Replacement Fund..   

The board set a minimum for reserves and even after completing the streams in 2018 we would be funded at least 50% above that minimum value.  Furthermore, the association was collecting between $400,000 and $433,000 each year for the reserves "Replacement Fund."

Planning and Surveys are Important

Here is an example. It is a simple diagram I made as part of a survey of the property in July 2015. It indicates the presence of drainage corrections, tree removal scars, etc.

I had become concerned by the large number of scars on the property, many because of the removal of trees. I have never been the Landscaping Director; simply a concerned board member. 

I prepared this simple diagram and distributed copies to all on the board. It initiated a conversation of what to do and how soon.  Shortly thereafter the problem was addressed. Wood chips and stump remains were removed, the scars were filled with soil and sod applied. Drainage work proceeded and grass was planted or sod installed.  Much of the work was completed by Maintenance.

Landscaping issues - July 2015

The Contractors involved in dealing with Landscaping as directed by the board

A variety of contractors are involved. All must be coordinated and individual responsibilities determined. Contractors involved include:

• Management
• Landscaping
• Arborist
• Maintenance
• Specialty including Industrial Plumber, Roofers, Concrete and Asphalt, etc.

Multiple contractors are involved because infrastructure issues impact landscaping. Landscaping may be damaged and require remediation as a consequence of maintenance and infrastructure projects. If a fire hydrant is replaced, it will result in a significant scar which is to be cleaned up, and then grassed over. Water main breaks require clean-up after repairs and frequently require work on damaged driveways and lawns. The mains run beneath grassy areas, driveways and streets.

Removal of trees or dense shrubs results in tangled roots to be removed. After tree stumps are removed there are wood chips to be replaced with soil.  If a driveway is impacted then there is asphalt work to be done.

Boards which ruminate about small landscaping matters often miss the point and repairs or corrective action slows to a crawl.  Consider how a board makes decisions.  It can take months.  For example, if a problem is discovered and it is not an emergency, it will be brought to the attention of the board at the next monthly meeting. If the board is not decisive, a decision will be delayed until the next meeting, and so on.  The board must decide when to address a landscaping issue and by whom and then issue the directive to management. Sometimes the issue simply dies of a lack of attention.  That's how a few years ago 100 landscaping scars had accumulated on the property and a simple landscaping repair after the replacement of a fire hydrant dragged on for a year.

Here is how easily the timelines become extended. An issue discovered after the monthly meeting will be discussed at the next meeting.  If a decision is not made by the board and a directive issued to management then nothing proceeds. Then add seasonal, weather related issues.  Good weather and relatively dry ground which can be worked is usually in the period June through October. That's a 6-month window each year.  Once the first freeze occurs landscaping may be impossible. Once the ground freezes, working the earth becomes impossible, or very expensive. 

Some landscaping cannot be done during the wet season, and grass mat and sod does not do well if spread in August.  Frequent watering is essential at elevated temperatures and dryness and it is possible to burn and kill the new grass.  

Boards which fail to think of tasks as "urgent" and fail to operate with speed are the least effective and successful.  Turning the water mains over to the city is a real world example of this.

Management is intrinsic in the Landscaping.  Management relays observations of owners and contractors to the board and creates all of the work orders to the maintenance contractor, as well as work orders to the arborist and landscaping contractor. Management obtain bids for tasks as directed by the Board. Management should conduct frequent surveys of the property as directed by the board. A board member or members may accompany management, which is a preferred approach.  This provided a fiduciary set of eyes on the property and a direct pipeline into the board.   That facilitates discussions during monthly association meetings. Surveys include condition surveys of streets, garage floors, driveways, streams, common area decks and so on.  Management will create bidder lists which the board may comment upon. Management will provide bids to the board and provide comments and recommendations.   Management is not qualified to perform engineering and project management duties for more difficult projects and does not have the professional liability insurance required of professional engineering firms, nor does it have the credentials.

The board must decide which aspects of Landscaping to direct management to issue work orders to maintenance and which to obtain bids for.   It is not practical to get a bid for each and every landscaping repair. 

The Landscaping contractor has an annual contract.  This contractor mows the lawns, collects fall leaves and trims shrubbery and performs other services in accordance with the contract.  The board may choose to extend special contracts to Landscaping contractor. The work at the north entrance on Briarcliffe Blvd is an example, as is some of the work at the ponds, and at 1825-1827 Briarcliffe Blvd.

The board did obtain bids from the Landscaping Contractor to replace a portion of the dead Viburnum shrubs.  However, the bid was not accepted because it deviated from the requirements. 

The Maintenance contractor has an annual contract with the association.  The maintenance contractor is involved in overall site maintenance. This includes infrastructure, panel and trim replacement on the buildings, deck repairs and replacement, minor concrete and asphalt repairs, minor tuckpointing, street lighting, monitoring the space heaters and temperature of utility rooms, cleaning the gutters of buildings, and so on. The annual contact provides for a specific number of hours in the year. Materials are added.  The maintenance contractor may hire sub-contractors who are more qualified for some work and will get the necessary permits. Additional work includes drainage modifications. Much of this was necessitated by the roofing project 2003-2017. Rotting landscape timbers were replaced with stacked masonry. Benches have been replaced, and so on.   

When a water main break occurs, the maintenance contractor is usually on site, and is involved in the cleanup work, grading, preparation of areas for replacement asphalt, and even sodding over the scar. 

Landscaping in the O&M Budget and Reserves ("Replacement Fund")

The annual Operations & Maintenance (O&M) budget includes a "Landscaping" item, but this item is allocated to several contractors, including:

• Landscaping 
• Arborist

The O&M budget includes annual expenses via the landscaping contract, and care of the trees by the arborist. 

The Replacement Fund also has Landscaping categories. Reserves (the "Replacement Fund") are for long term replacement of aging infrastructure.  In the 2017 reserve projections we were unaware of the full scope and costs to deal with the death of thousands of Viburnum shrubs. 

The additional funding prior to the 2018 budget was before the die-out of the thousands of Viburnum shrubs on the property was identified and realized.  It is possible that additional replacement funds will be required.

In 2017-2018 I promoted the removal of these dead, dying and diseased shrubs be replaced with grass. This would maintain the appearance of the property while the board decided upon and allocated funds for a longer term replacement. This has not occurred. 

The 2015 reserve study update with board input allocated $170,639 for landscaping replacements for the entire property for the period 2015-2024. The boards of 2014-2018 were aware of the issue with trees, in particular the ash trees and so funding of reserves was increased. Additional funds were allocated to reserves to deal with identified issues.  In fact, in 2018 the board did obtain a proposal for shrubbery replacement. 

The amounts allocated to landscaping via reserves are determined using the reserve study plus any additional amounts that boards allocate via the yearly budget.  The board can allocate more funds, or less. 

The details of the reserve allocation to the Replacement Fund is contained in the study and revisions.

In fact, the boards did allocate additional amounts, as follows:

• $122,395 additional in the 2014-2018 budgets
• $65,954 additional in the 2019-2021 budgets
• Total budget increases: $188,349
• Total of additional, 2015 study increase + budgets: $170,639 + $188,349 = $358,988.

Boards have full discretion of how reserve funds are spent, and at what pace.  For example, an extra-ordinary amount of work was done in 2017-2018 to complete all stream repairs and complete the drainage projects throughout the grounds, in addition to ongoing garage floor replacements, driveways, street repairs and so on. As a consequence expenditures exceeded income to the reserves.  The boards of 2019-2021  decided not to replace dead shrubbery. 

.Categories for increased funding of reserves:

• 2014 budget: Additional $18,852 for issues related to condemned fireplaces (funds never used).
• 2016 budget: Additional $57,739 to deal with trees.
• 2017 budget: Additional $22,902 reserves for Landscaping issues (dying shrubs).
• 2018 budget: Additional $22,902 reserves for Landscaping issues (dying shrubs).

The boards of subsequent years 2019-2020 increased the allocations to reserves by the following amounts:

• 2019 budget: Additional $22,902 reserves for Landscaping issues.
• 2020 budget: Additional $22,902 reserves for Landscaping issues.
• 2021 budget: Additional $20,150 reserves for Landscaping issues.

Any reserve studies completed prior to 2017 did not provide for the Viburnum Shrub die-out as a need for fees expenditures, because the problem had not yet been observed. 

Grass mat doesn't work in the shade, and neither does sod

Drainage - Swale cut early in December
Required to funnel new downspout water away from the building entrance.
Landscaped by Maintenance the following year.

Drainage improvement. Clearing root systems
Required by roofing project to carry water away from building entrances

New gutter discharges connected via under ground piping
to a new basin, which fills and flows into the street, 
to carry rainwater to the storm sewer
Prior to grass planting

Heaving Driveway caused by water from relocated downspout which had
flowed beneath the entry walk and then beneath the driveway.  Freezing
caused heaving of the walk and drivesay

 

Failed bench replaced, grass mat and new wall - work performed by Maintenance Contractor

Retaining wall and stone by Maintenance Contractor

Drainage work related to roofing project
Retaining wall, grading and grass by Maintenance Contractor

Stone replacing mulch - permanent solution - work by Maintenance

Drainage tile as part of roofing project - includes landscaping by Maintenance

Willow truck of tree - removed by arborist

Large area after removal of dead ash by arborist, removal of chips and grading by Maintenance, prior to application of sod by Maintenance - July 2014

Ash stump September 2014.
In the period 2012-2018 several hundred diseased, dead and dying
trees were removed. Most grading and replacement grass by Maintenance.

Frequent flooding before grading and new walks
by Maintenance and Concrete contractors.

Aerial view of "Mosquito Glade" in photo above
Part of N. Retzke presentation to the HOA board

Above area after partial grading and surveying by Maintenance
Sidewalk forms partially in place by Concrete Contractor

After Spring rains, same area.  Walks by concrete contractor, all
other work including sod by Maintenance, completed September  2016

Removal of tangled roots - dead tree - by Maintenance

Stream prior to repairs 2016

Steam after repairs, 2016. Grading, stone, sod, deck repairs, etc. by Maintenance

Another view of repaired stream

For more about these projects, click on:  Link to Street Repairs and Projects

For more about those dead Viburnum Shrubs, click on: About those Dying Shrubs

Notes:

1.  In fact, the two "lakes" which are on the association property are part of an easement to the City of Wheaton. The city uses HOA property as part of their water retention system. Not really an equitable situation and the owners of our small HOA are required to deal with all manner of problems caused by the city's upstream retention ponds A, 1 and 2. 

(c) 2021 N. Retzke