Projects reports to Boards and to owners

 

Project costs of 2018,
presented to owners during the 2018 Annual Meeting

Project reports to the HOA owners and the board are useful.  It is important to track expenditures but in my experience, boards at BLMH didn't do a good job of tracking the actual long term project costs.  There are a variety of reasons to do so, including the building of better budgets and the preparation of owners for positions on the board.

Of course, this information must also be responsibly communicated.

I prepared a variety of spreadsheets and charts as a member of the board 2010-2018.  This is one in a continuing series on the benefits of doing this.  Owners get better insights, and the board can make better decisions, if they choose to do so.  See Notes 1, 2, 3 and 4 as an example.

The chart above was presented to owners during the September 2018 annual meeting.  That was my final meeting as a board member. (Note 1).

When I was a board member, I created spreadsheets as condition reports and surveys to present to the board so the board could properly perform its fiduciary duties and maintain the property. I also created spreadsheets to track project expenditures as the board voted to perform that maintenance.  To be clear about this, Management did provide this information in a different form and presentation to the board each month via the monthly "Information Packet".  However, my goal was improved communications and better board decisions.  The board's decision to replace management effective January 1 means I can't say anything about the future.

In 2018 I made a sheet and presented it during the annual meeting, so owners could see where the board was spending the reserves.  I did similar sheets for a variety of projects completed or undertaken during previous years.  I was on the board for eight years and millions of dollars were spent on roofs, drainage, streets, water mains & fire hydrants, driveways, garage floors, streams, common decks, unit patios & property bridges & decks, tree removal and replacements, and so on.  

I do have a very good idea of how much was spent and where.   How is that?  Because I paid attention and kept notes and made spreadsheets.  The chart below is an indicator.  I held a variety of positions over an eight year period, including Maintenance, Architecture directors, and president. I made it a point that that these financial insights were all thoroughly discussed.  Owners, who are the shareholders of this not-for-profit corporation, were informed during meetings and via the newsletters. 

There is no requirement that owners attend association meetings, although I also made it a point as a board member to promote that they do, and I rewarded those who did with informative meetings. 

As an example, I included the chart above as part of presentations to the board and to the owners during a regularly scheduled meeting and I telegraphed it via the newsletter.  I would have included more and at times I even expended the pages in the newsletter to provide additional information.  

Not all board members agreed, and some remain on the board to this very day. Since 2019 that has been reflected in the newsletter and in the termination of the BLMH.org website by the board in 2021.

Even the "Welcome Packet" was allowed to wither by non-supportive board members. It hasn't been updated, nor is it available online.

(C) N. Retzke 2021

Patio Condition Survey

 

Patio Survey - My Spreadsheet September 2012
Survey by our Manager and I.
Presented to the board in September 2012

After I joined the board in September 2010, I initiated a lot of onsite surveys.  These were a necessity because the board was unaware of the condition of much of the infrastructure.  The earlier board had left in September 2010 but did not turn over condition reports to the new board; I suspected there were none.  Management provided whatever they had and that became the beginning of regular, annual surveys from 2011-2018.

I did the survey, for some of them management joined me, and for others another board member joined me.  

The need for these surveys became apparent when several owners approached the board in September 2010 and reported issues with garage floors. The board considered a repair, but I asked if we had a list of the condition of the 84 garage floors on the property.  We didn't.  I asked the board to delay a replacement until a proper survey could be made.  The board agreed.  

The garage floor condition survey was conducted in early 2011 and was reported to owners in the May-June 2011 Newsletter.  That survey revealed eleven garage floors in "poor" condition. The article is available by clicking here:

May-June 2011 Newsletter - Garage Floor Survey

To avoid any confrontations, I would never do garage or patio surveys unless accompanied.  

Patio Survey

The garage floor survey was the first of many, regularly scheduled annual surveys. 

The patio survey in the image above was submitted to the board in September, 2012.  One board member, who had been on boards for a couple of decades contested my findings.  It was her position that earlier boards believed that they had repaired all of the patios.  The facts and owner statements disproved that.

I conducted a formal survey because I observed some patio issues during my normal walk-arounds on the association property.

All of these surveys had the intention of best directing maintenance resources and avoiding breakdowns.  All resources were paid for by owner fees, and breakdowns would be at a minimum an inconvenience for owners, and at worst, require higher repair costs.  Higher costs result in higher fees.

(c) N. Retzke 2021

Garage floor and Driveway Surveys

 

Driveway and Garage Survey Spreadsheet

A number of surveys of the property were made each year. The above is a summary of two surveys conducted in 2017. There were other surveys, including entries, streams, decks, gazebo, streets, brick sills, etc.

The garage and driveway survey of 2017 was conducted  by our manager, our Maintenance Director who is a member of the Board, and by myself.   I took notes during the survey and consolidated these into a spreadsheet. 

For the annual meeting held in 2018 I provided the following to owners, on a large screen, using my projector and laptop. That was my final meeting as a board member:

(c) N. Retzke 2021

Continuity, Backlogs, Leadership and Vision

Here's the results of my annual driveway survey. It is an example for what follows in this post. We'll be replacing four driveways this year, which gives us 52 new driveways, or 62% since 2009. The older driveways are in good condition but crack filling and future replacements will be necessary. I'd like to point out that replacing four driveways per year, on average, will replace all driveways every 21 years. Our driveways have a useful life of 15-20 years, so replacing all at such a pace is within the guidelines we've established.

Yes, recent boards have been playing "catch up" to the problems created by earlier boards. The driveways are an example.

• Since 2009 52 driveways were replaced
• Based on lifecycle studies, only 32 should have been replaced
• The additional 20 that were replaced since 2009 were part of the maintenance backlog created by earlier boards. 
• Add to this streams, patios, common area patios, garage floors, etc. which were maintenance delayed. 

The current driveway data was collected by me and provided to the board [There were actually two surveys this year; one in the spring and one as fall approached]. This approach is typical of ongoing and frequent conditions surveys I instituted in this association in 2010. In 2016 there was no resistance to replacing the four driveways because I had take photos of all of the older driveways and presented that information to the board.  This is an example of an approach which avoids sticking our heads in the sand to the detriment of the association and its owners.

Driveway Survey August 2016

Prior to 2009 we had problems with aging driveways. The boards were faced with the magnitude of the roofing project and rising annual fees to accommodate it. Fees and the roofing project are only part of the problem.

It seems that annual condition surveys were suspended prior to 2011. With the infrastructure aging, it was easier I suppose to simply sit back and deal with those upset owners who came to association meetings. So the squeaky wheels got the grease. This approach has other problems, including the establishment of a substantial maintenance backlog.

Irate owners finally stormed association meetings. Most of the "kick the can down the road" leadership was replaced. However, the new board faced some real challenges in 2009. I think they replaced more than 12 driveways in 2009-2010. That was the tip of the iceberg.  They had made some big promises to win those seats in 2008. Those promises, combined with a real maintenance backlog led to a steady stream of owners attending association meetings with their hands outstretched. So the squeaky wheels had taken over the association. Expectations were high. Walking the talk is the difficult part.

The earlier boards had left several land mines behind for the replacement board of 2008. That included severe animosity toward any board by some owners. A failure to communicate was another. So we had a backlog of maintenance issues, an underfunded mega dollar roofing project underway, our major street was failing, we had chronic communications problems and owners were angry. That was directly a consequence of a failure of leadership and vision by earlier boards.

The true magnitude of the problem became apparent with the reserve studies that followed.

Another casualty was future boards. Is is any wonder that owners don't want to participate? But I'm making excuses for the owners. There is no excuse for avoiding involvement and protecting one's major financial investment. But too many owners used the problems as an excuse and simply promoted their personal agenda. Some had difficulty believing what was so. After all, the earlier "kick the can down the road" boards hadn't communicated and then the new "neighborly" board painted a rosy, fictional picture. Some owners were confused and had a right to be.

Solving the Problem
To deal with these types of problems takes leadership by example and vision. Not everyone comes to a volunteer board position to work; after all it is a power position and it does carry some cache in the community. When the going gets rough, some will run, some will attack those who communicate the bad news, and some will attempt to assassinate the champions. Others simply fulfill the role of underminers. There may be personal agendas and legacies to protect.

The new board of 2008 attempted to resolve the communication issues. But they lacked the backbone to tell the owners what was really so. After all, if one runs on a political slate of "change, " "neighborliness" and "we have enough money" it becomes difficult to tell the owners otherwise. So there was some real silliness. For example "We can maintain the property with an army of handymen." One of the board actually had a non-owner handy guy come to an association meeting to promote his agenda. Another silliness was "porous asphalt." At best these were diversions. At worst they pushed serious matters far lower on the scale of priorities.

It was difficult for the board to own up to the serious delinquencies and foreclosures that occurred commencing with the financial crisis of 2007-2008. They couldn't replace a rosy picture and communicate reality. It is really difficult to walk the talk, and our new board at the time discovered just how really difficult that is. The reserve study of 2010 was the sign to leave and all that they needed was to find an excuse. I was it and three ran for the exit.

There is that old expression "Lead, follow or get out of the way." When faced with underminers I'd prefer they simply get out of the way. But not all do. Nevertheless, there has been sufficient opportunity to move this association forward.

Major Steps
Here are some of the major steps undertaken at our association in recent years:

• Reserve Studies.
• Using reserve studies as the tool they are meant to be.
• Frequent condition surveys
• Establishing priorities
• Responsible budgeting
• Honest and thorough communications
• Continuous improvement
• Using data rather than automaticity.
• Acknowledging that budgets must consider property values, the financial impact on owners and the assessment increases necessary to fund reserves. 

Not everyone agrees with the previous steps and it has been an uphill struggle. You really can't "teach old dogs new tricks" if they are too inflexible and set in their ways. But they may be absolutely certain that they are right, never mind the numbers; that's an inconvenience. I supposed the "new tricks" expression could be the slogan for some HOAs. I can't take credit for the current amounts we collect via reserves. That goes to the boards of 2000-2010, who ramped up our reserve budgets by very large amounts. The average fee increase for reserves from 2002 to the budget meeting of 2010 was nearly 13% each year. It would have been higher had I not argued for a moderation of these increases in recent years, based upon:

• Current infrastructure knowledge
• Current 10-year infrastructure projections
• Current 30-year projections
• Knowledge of the financial impact on owners and property values.

Leadership and Vision

There are many aspect to leadership in a homeowners association. 

• Setting long term goals
• Establishing priorities for goals
• Managing our managers
• Managing a diverse group of volunteers
• Dealing with belligerent owners who run their personal agendas
• Building better boards
• Mentoring new board members
• Communicating responsibly to owners while avoiding glossing over inconveniences

It is unfortunate, but some association board members become bullies, some lose their vision and some fail to communicate honestly and authentically with owners. 

Nevertheless, I do think we have sufficient owners with the necessary qualifications to fully staff our board and tun the association. But to do so requires dealing with the bullies and some honest work. Perhaps that's the reason why "Ken" the apple orchard guy doesn't hire young people to help him in his orchard. At 95 Ken was pruning and climbing ladders with a half-bushel basket attached with a harness. He said younger people would expect a Cola machine and some would have their mothers come along. As for the older? Simply too lazy, I guess. 

Spring Surveys

One pond in late summer

This post includes a brief video.

It's spring and that means it is time to get out of our winter hibernation and into action here at BLMH. I actually began the planning process in January and provided the board with a multi-page list of issues and objectives during the January 2015 HOA meeting. As I have frequently stated to owners and a variety of board members, we have about 8 months to get done whatever it is we hope to accomplish in mild weather. It is absolutely necessary to "hit the ground running."

I gave the board and any owner who attended the January meeting a thorough but brief summary of the issues and what I will be working on for our HOA this year. When an owner complains about transparency, I suggest they attend these meetings. I am being very, very transparent.

One of the tasks for the Architecture & Project Director is to conduct surveys. Currently the HOA has a Maintenance Director and an Architecture Director. For this HOA that is a first; those duties were never previously shared. However, we also were short staffed. We work closely together and share the duties and responsibilities. For that reason we conduct some of these surveys together and with management.

It can be a daunting task. We have 84 4-unit garages, 84 wide driveways, 336 decks and concrete patios, three independent waterfall-stream-pond systems, several large decks and a gazebo. Etc. The surveys can include streets, storm sewer inlets, walks and hundreds of exterior electric lights. It's good to be watchful for tree issues, or other building exterior problems. Drainage is an ongoing project and so that's another area of scrutiny. We've made a lot of drainage improvements since 2010.

With such an extensive property, a complete and thorough survey of everything each year may not be possible. I remind the reader that we usually have six volunteer board members and another 330 owners. None of the 330 other owners are presently on any committee. It falls upon our maintenance, management and the board to do these tasks.  I've taken the position that if owners want more, then they should get involved.

Why these surveys? In an extensive property such at this one, it is necessary to set priorities. Owner or resident complaints can be useful, but in HOAs there is a tendency with boards to see that "the squeaky wheels get the grease." Some owners want to keep fees from increasing and will make sacrifices for that purpose. So at the ends of the spectrum we have the complainers who will manipulate the system if possible and then there are the others who keep a very low profile with the assumption this will keep fees lower than they might otherwise be. Unless the board is diligent the squeaks will spend the money.

Frequency
How frequently should these surveys be conducted? For more permanent structures, such as driveways, a survey independent of our maintenance workers may be adequate every other year. For garage floors, perhaps every three. Some of these things don't change dramatically from year to year. However, walks can tilt or shift and so that may be an annual event.

Driveways
For example, in September I did a survey of the 84 driveways on the property and rated them. The purpose was to get an idea of what would be necessary in 2015.  That information was used as the basis for another survey with the maintenance director and our professional manager. That work was completed and a summary has been sent to management. We'll use this to obtain bids, determine the scope of work and solicit board approval. It is important for owners to realize that it takes an entire board to make these decisions. I go out of my way to provide information and I prefer not to second any motions I have presented. After all, I wouldn't make the presentation to the board if I didn't think the issue had merit. It is ultimately the decision of the entire board to proceed or not. If the board stonewalls, or votes "no" then the initiative doesn't pass.

In conjunction with the driveways we are also adding concrete aprons where there are none, and a narrow walk. So it was necessary to determine which driveways had these, which did not and to inspect the garage floors; there is no point to adding an apron to a garage floor in serious need of replacement.

Garages
Another survey a few years (April, 2011) ago was 84 garages. That survey generated a comprehensive report and it was used to replace a number of 4-unit garage floors. A summary was provided to owners in a newsletter after my earliest survey of garages several years ago. I've only been on the board for about 5 years. I've transformed some of the processes in that time.

I included an article in the May, 2011 HOA newsletter on this, The article is brief and provides some insights into the method used:

Clicking will open a  New Window> May 2011 HOA Newsletter including Garage Survey

Streams and water systems
Last year, we replaced a bridge on the property; where there are streams and waterfalls there will be bridges. Some are concrete and others are wood. We are replacing the wood bridges with more permanent man-made materials. Last year management agreed to survey all streams this spring so we could determine a 5-year plan. We do have this included in our 2011 reserve study. However, getting boards to allocate the funds is not an easy task.

These are significant architectural features of BLMH. It is a fact that nearly half of our residents, about 46% are either on a stream, waterfall or pond, or have an view of these.

Here's my summary video of the survey. We are currently repairing a pump system. These streams are completely man made. The survey video is supported with written materials.