My alternative budget to avoid a maintenance increase

It has been brought to my attention that a number of unit owners have not yet turned in their budget proxies. It is critical that owners submit their proxies as soon as possible. To avoid a maintenance fee increase of 30 percent or more, you must vote “Yes” to waive reserves and send in your proxy in time for it to be received by the association by the Dec. 17 deadline, which is the date of our budget meeting. Some of you have told me you misplaced your proxy or never received it. No problem. Click HERE to download and print one. Others have asked me for specific instructions on how to complete it, so here goes: 

Fill out the very top part where it asks you for your unit number and building. Leave the line just below that blank; the board secretary will act as proxy and is required by law to cast your proxy form as you filled it out. Just make sure you check "Yes," date it, sign where it says "Signature of voting representative" and print your name below that, and leave everything else blank, including the "Substitution of proxyholder" part at the bottom. (If you have more than one unit, fill out as many proxies as you have units.) 

You can bring the proxy to the office in person, fax it or scan and email it. You could also mail it in, but considering that the proxy must be received by Dec. 17, it might be safer to use one of the other methods.

To email it, just scan the completed form and send it as a PDF or jpeg attachment to admin@internvillage.com and include the word “Proxy" in the subject line.

To fax it, send it to 954-486-5677.

MY BUDGET PROPOSAL

As for the budget itself, I have taken the time to review the proposed 2014 budget, with some help from a fellow unit owner, in advance of our Dec. 17 budget meeting, and I am now confident we can cut the $159,000 needed in savings to avoid a 7.4 percent maintenance increase. 

First off, let me state that our employees are greatly appreciated for their hard work and dedicated

service to International Village, but I cannot in good conscience support the proposed 4 percent salary increase at the same time the budget is asking already struggling owners to pay 7 percent more in maintenance (which happens to be about seven times the current rate of inflation). Let’s keep in mind that our employees are already going to get a substantial increase in health insurance benefits as a result of Obamacare mandates, which will require us to spend an extra $16,000 in health benefits next year. That’s the equivalent of a raise in my book. So why would we add another $30,000 salary increase on top of that, just because it represents the same 4 percent raise that was given last year? In this economy, how many of us can expect an automatic 4 percent raise every year? Salary increases and bonuses have their place, but they should be tied to performance using defined benchmarks such as, say, success in balancing the budget without raising fees. Here's the deal: I pledge to support this proposed 4 percent salary increase for all employees if our property manager presents the Board with a budget that doesn't include a maintenance increase at our budget meeting this coming Tuesday. Of course, this will require coming up with the $159,000 in savings I mentioned earlier. To make this task a little easier, I took the liberty of identifying some savings in the budget myself, and have come up with the following proposed cuts, which add up to exactly the amount of savings we need. 

1. Legal fees – Save $25,000 by engaging in less unnecessary litigation, which often seems driven by Board members’ personal animosities.

2. Computer expenses – Why are we budgeting $15,000 for such a tiny operation? Save $7,500.

3. Office equipment and supplies – Again, for such a small office, the proposed $15,400 sounds exorbitant. Save $8,000 by shopping at Walmart.

4. “Other expenses” – This very vague line item is budgeted at $10,000. Unless we can get a better definition of at least what general category of expenses we are talking about here, I would eliminate this item altogether.

5. Signage – Why is $2,500 budgeted for signage when less than $200 was spent in 2013? Save $2,300.

6. Cell phones – There is no justification for spending $1,350 for the Board of Directors president’s cell phone when all other Board members pay for their own. I have no problem letting the three other individuals with association-paid cell phones keep them since they are employees and need them for their jobs, but there are cell phone plans for $50 a month – less than half of what we’re paying now. Save $3,600. 

7. Cable – Eliminate premium channels like Showtime (trash time). I don’t know how much this will save, but let’s say $35,000 (about 10 percent of the annual price of the contract).

8. There appears to be some redundancy in the budget. We have an air conditioning contract, a landscape contract and a pest control contract, which are costing us a total of $66,540. But in a separate part of the budget, a total of $60,000 is set aside in maintenance costs for air conditioning, landscaping and pest control. Why are we paying twice for the same things? We don’t seem to be getting our money’s worth on these contracts. Let’s rebid them to make sure our contractors do more so we don’t have to do so much. Save $30,000.

9. Copier lease – Why are we spending $4,500 a year on this? Wouldn't it be cheaper to buy a copier? Dump this expensive leased copier. Save $2,000. 

10. Water and Sewer – At $600,000, this is the single biggest line item, but maybe we could get some of it back. There has been talk of enforcing the Village’s ban on washers in units, but also of the impracticality of forcing owners with “grandfathered-in” washers to remove them. But we could turn this negative into a positive by simply acknowledging that they exist and charging these owners a fee based on their estimated increased water usage. Recover $5,000.

11. Open the clubhouse one hour later every day, at 8 a.m. instead of 7 a.m. According to our property manager, only between 3 and 10 people a day use the clubhouse between 7 and 8 a.m. anyway. This would save about $4,700.

12. Paint – Let’s cut the $6,000 budget for this item in half by stopping the practice of repainting the walkways every year. We could easily get away with painting them less often and just giving them a good sweeping. But if the paint is fading faster than it should, we need to switch paints. Save $3,000.

13. Social activities – I believe this should be mainly a volunteer initiative. In fact, this past year, volunteer owners organized several successful and very well attended parties that didn't cost the association anything. Save $4,500.   

14. Maintenance and janitorial supplies – $78,000 seems like a lot. Let’s try to make do with $65,000. Save $13,000. 
15. Gym – We just replaced all the gym equipment. So why is the budget $3,000 higher than last year's approved budget? Save $3,000.
16. Tennis and racquetball courts – Why are we spending $3,000 on these two items? Save $2,000.

There you have it. I don’t believe I have exhausted all the potential savings in the budget, but just doing the 16 items above will avoid the threatened maintenance fee increase. Let's hope our property manager and Board take heed. And be sure to attend our budget hearing this coming Tuesday, Dec. 17 at 7 p.m. in the clubhouse (as well as our regular meeting scheduled for the day before on Monday, Dec. 16 at 7 p.m.).

SECURITY SCAM

In other news, the Safety & Security Committee held its first meeting last week. (See it HERE by scrolling down the page to "Safety & Security Committee.") The committee, which was established last month by Board of Directors President Marvin Tow, had been billed as a way to solicit ideas from owners on addressing safety concerns in the Village. But the first hour or so of the meeting was devoted to a slick sales presentation by two representatives from a local security firm, who pitched several unsolicited big-ticket items including front entrance locks and a telephone entry system for each residential building, a new electronic key access system and, of course, a camera surveillance system – none of which they provided price estimates for, saying they were under strict orders by someone on the Board (the president?) not to discuss costs.

Some cynics had suspected that this committee was just designed as another vehicle for our Board president to once again push his favorite pet project (despite a recent ruling by the Florida Department of Business and Professional Regulation that forced his $150,000 camera scheme to be put on hold). What they probably didn't see coming was an even more ambitious maximum-security plan to convert International Village into a virtual prison.

ART FESTIVAL

On a lighter note, International Village will be hosting its own mini version of Art Basel this weekend, with an Art Festival to be held this Saturday, Dec. 14 from 3 to 6 p.m. at the fountain in the “French Quarter” of the Village. Bring your art works to sell and share, bask in the beauty of this perfect gathering place, and meet and network with your neighbors while enjoying some free cake courtesy of our social activities chairman John Henderson. Musicians are welcome.

International Village budget package and election notice

By now, all unit owners should have received two important pieces of mail from International Village: the 2014 budget package and the notice of the Board of Directors election to be decided on Monday, Jan. 27, 2014.

First, the budget package: As I have stated previously in my blog, I disagree with some of the spending contained in the proposed $3.5 million operating budget (including $1,350 for our Board of Directors president's cell phone), and I look forward to proposing a number of cuts to bring spending down because I don't support raising maintenance another 7 percent after this past year's nearly 20 percent increase.

As for the election package, those of you planning to run for the Board of Directors must submit the enclosed Notice of Candidacy to the office by Wednesday, Dec. 18, 2013. Candidates also should submit a bio no later than Monday, Dec. 23, 2013. Ballots will then be mailed out to unit owners including the names of all the candidates as well as a number of proposed changes to our condo docs, some of which were discussed at our last Board meeting on Nov. 18. (See 11/18/13 meeting video.)

There was also discussion last month of holding a special meeting in the very near future to revisit "Part II" of last year's special assessment, which the previous Board voted to postpone in September 2012 after approving the "Part I" special assessment of $1.3 million, which was collected over four months from October 2012 to January 2013. The idea of a meeting to impose another $1.4 million special assessment just before an election is insane, and I hope it doesn't happen.

In another action last month, the Board voted to ask our association attorney to prepare a petition to the Department of Business and Professional Regulation (DBPR) requesting a declaratory statement to determine the legality of installing a camera surveillance system in International Village before proceeding any further with the idea. But instead of asking for a decision on the proposed system, the Board voted 6-1 (with me dissenting) to inquire about the propriety of the camera system that was installed in the Zurich building a few years ago by a committee of Zurich unit owners. A DBPR official I spoke to after the meeting told me in no uncertain terms that the petition will be denied because the agency won't issue declaratory statements on actions that have already taken place (as made clear in Finding #11 of this recent DBPR ruling). So before we spend $3,000 in legal fees so our association attorney can prepare a worthless petition, I hope the Board will reconsider its move.

Finally, the new Safety & Security Committee, which was created to discuss safety issues after the proposed camera system hit its DBPR roadblock, will hold its first meeting this Wednesday, Dec. 4 at 7 p.m. in the clubhouse small card room. If you're not too busy, I encourage you to try to make it. 

Another 7 percent maintenance increase?

How do you feel about paying an extra 7.4 percent in maintenance fees next year? If the proposed $3.5 million operating budget our property manager just submitted to the Board of Directors this past week is approved without changes, that’s exactly what you can look forward to (not including any potential special assessments for various "priority" projects already under discussion).

Under the plan, the owner of an average one-bedroom unit currently paying $282 monthly maintenance would pay $303 a month, while the owner of an average two-bedroom unit who is now paying $393 monthly would pay $422 per month in maintenance. The Board will take up the 2014 budget at a hearing set for Tuesday, Dec. 17 at 7 p.m. in the clubhouse.

If you feel a 7.4 percent increase is too much after this past year's nearly 20 percent maintenance hike and large special assessment, I encourage you to carefully review the budget to help the Board identify potential savings. Share your recommendations with us BY EMAIL ahead of time and in person at the budget hearing. Remember, this proposed budget is not the last word, nor is it one I personally would have produced. I would prefer to see more cost savings, resulting in less financial burden to unit owners.

To give a brief overview, the proposed budget calls for spending $159,000 more next year than this year. The biggest increases come in the categories of insurance, cable, employee salaries, plumbing maintenance, air conditioning, and employee health care costs due to Obamacare. In his budget cover letter, our property manager defends the higher spending by citing cost of living increases and the aging of the property. These may be valid points, but it is interesting to note that the Inverrary Association (our master property association) has managed to produce a 2014 budget that calls for no increase in maintenance from its member associations. If they can tighten their belt in tough economic times to live within their means, why can't we do the same at a time when many owners are still struggling financially? For example, the association is projected to spend $5,400 next year on cell phone service for four individuals – amounting to $1,350 per phone. One of these four individuals is our Board of Directors president, Marvin Tow. Since Board members are volunteers, and the rest of the Board pays for its own cell phones, I fail to see how this expense is justified.

In other news, unit owners with ideas for improving security at International Village are being invited to join a new Safety & Security Committee to recommend safety-related initiatives for the community. Mr. Tow announced the committee's creation last Monday at a special meeting (see 11/11/13 meeting video) that began gathering owner feedback on safety in the wake of a recent Florida Department of Business and Professional Regulation ruling that has halted plans for a massive camera surveillance system. If you would like to join the committee, send an email to assistant@internvillage.com including your name, building and unit number. In the meantime, our association attorney is recommending that the association seek a declaratory statement from the DBPR regarding the legality of a camera system in International Village before proceeding any further with the idea. (See his opinion letter HERE.)

Finally, the Board will set a date for the upcoming Board of Directors election at our meeting this Monday, Nov. 18, at 7 p.m. in the clubhouse. The election will take place in January, so if you're thinking about running, it'll soon be time throw your hat in the ring. The election also may be an opportunity for owners to consider changes to our condo docs and rules and regulations. (See our Declaration of Condo here, our Rules & Regulations here and our Bylaws here.) Board members will discuss some possible amendments to place on the ballot at this Monday's meeting. If you have ideas of your own in this regard, please come to the meeting and share them, or CONTACT US NOW by email.

Camera system proposal placed on pause

You did it – again! 

After a good number of you emailed or called Board members to oppose a proposed $150,000 camera surveillance system, the idea has been placed on hold. A special meeting this Monday, Nov. 11, originally scheduled for the purpose of discussing and voting on the project, has been re-purposed as an open discussion forum "for the Board of Directors and all attending unit owners to discuss the safety, security, and quality of life challenges facing our community," according to Board of Directors President Marvin Tow. (See his letter to unit owners.)
 

I applaud the decision to hit the “pause” button on this huge overreach of a project, which would have called for the installation of nearly 300 cameras in a community of just over 800 units, at a cost of over $500 per camera and a potential special assessment of about $220 per unit owner. Not only was the project ill-conceived, but as I have reported in my blog, approving the project without first allowing owners to vote on it would have been a violation of Florida law regarding “material alterations.” (See my post about the issue HERE.) 

I like the idea of a town hall style meeting for owners to share their concerns and recommendations on the general topic of security, and I encourage all owners to attend this Monday’s meeting, which will begin at 7 p.m. in the clubhouse. Now that the threat of a massive camera surveillance system being forced down our throats is out of the way (at least for now), this meeting will be a good opportunity for owners and Board members to calmly and intelligently discuss the issues of safety and security.

Camera meeting postponed – again!

For the second time, a planned special meeting to consider a proposed $150,000 camera surveillance system has been postponed. International Village Board of Directors President and chief camera project proponent Marvin Tow decided to reschedule the meeting from Nov. 4 to Nov. 11 after two Board members whose votes he was counting on informed him they would not be able to attend on the 4th. The meeting had originally been scheduled for Oct. 14, but that date was scrapped after many of you complained about the rush to hold a meeting at a time when three Board members were out of town.

Hopefully, this delay will allow more returning snowbirds and other seasonal occupants to attend. The Monday, Nov. 11 meeting will begin at 7 p.m. in the clubhouse. As I mentioned in my last e-mail/blog post, at the request of many of you I am preparing a petition to challenge the $150,000 camera project if the Board unwisely decides to approve it without putting the issue to a vote of unit owners as required by Florida law and affirmed in a recent ruling of the Florida Department of Business and Professional Regulation.

I must say I am surprised by Mr. Tow's latest mass e-mail to owners attacking me (which he failed to copy me on), in which he so strenuously objects to the idea of letting owners vote on the camera issue, since he has repeatedly and emphatically claimed that his views on cameras represent the opinion of the overwhelming majority of unit owners. I would have thought that he would welcome the opportunity to prove his case with a referendum on the project, especially since it won't cost us anything if we combine it with our upcoming Board of Directors election in January.

If you would like to sign the petition demanding a vote on cameras, let me know, or meet me at the Halloween costume party/potluck dinner this Saturday, Nov. 2, from 5 to 9 p.m. in the clubhouse, as I will have copies of the petition with me. I will be wearing a privateer’s hat to signify my dislike for Big Brother-style schemes to invade our privacy with cameras galore which, speaking of Halloween, I find rather creepy.

But most of all, come to the party this Saturday to have fun with your neighbors. Our social activities committee chairman John Henderson has been working hard to organize this event for everybody’s enjoyment, so plan on being there and having a good time!

Cameras? Let the people decide!

For weeks, proponents of a $150,000 project to install almost 300 "security" cameras throughout International Village have declined to consider the option of letting the owners decide by putting the issue to a vote.

Now they may be forced to do so.

Earlier this month, an arbitrator with the Florida Department of Business and Professional Regulation (DBPR) – the agency that regulates condos – ruled that the installation of cameras by a condo association constitutes a "material alteration," which under Florida law requires the approval of unit owners.

The ruling was in response to a petition by a group of owners of the West Coast Vista Condo Association near Tampa, who complained that their association’s Board of Directors had failed to get owners' approval before installing cameras in the condo's pool area. The arbitrator sided with the petitioners, rejecting the Board’s argument that the cameras were an emergency "security" measure, since they don't actually prevent incidents from happening (the deterrent effect being purely speculative). The association has been ordered to schedule a vote on the cameras and – if the owners decide not to approve them – to remove them within 30 days after the vote.

I have been in touch with the lead petitioner in this case, and he's eager to offer his assistance to ensure that proper procedure is followed in our case. He also informed me that the DBPR was so helpful in guiding him through the process that he didn't even have to spend any money hiring an attorney. On the other hand, the West Coast Vista Association spent about $1,800 in attorney fees in its unsuccessful attempt to defend its actions.

We don't have to make the same mistake, needlessly wasting $150,000 on a camera system we would later have to remove, along with associated litigation expenses. We can handle this the right way by simply agreeing to hold a vote. This will cost us nothing if we combine it with the mailing of ballots for our upcoming Board of Directors election in January (thus saving about $500 in additional mailing expenses). Let the owners decide if they want a massive surveillance system paid for by either a $200-per-unit special assessment or a permanent increase in maintenance fees – which would be on top of another potential special assessment to pay for about $1 million in various other "priority projects" discussed at our last Board meeting, in which the Board ironically approved new procedures for the installation of personal security cameras by individual owners in front of their units. (See the 10/21/13 VIDEO.)

A special Board of Directors meeting to discuss and vote on the $150,000 camera proposal has been scheduled for next Monday, Nov. 4, at 7 p.m. in the clubhouse. I, with the support of many like-minded unit owners, am putting the International Village Condominium Association and Board of Directors on notice that if the proposed camera installation project is approved without the required vote of unit owners, we will file a petition with the DBPR and the Florida ombudsman for arbitration to challenge the illegal move.

Please encourage all members of the Board of Directors to do the right thing. E-mail them HERE now to let them know how you feel, and be sure to attend our Nov. 4 meeting to make your voices heard. When enough of you have complained in the past, it's made a difference. Here's your opportunity to turn things around once again!

Thank you.

Camera meeting postponed!

You complained, they listened. The special meeting to consider a $150,000 surveillance camera system, originally scheduled for tonight (Monday, Oct. 14) has been postponed until Nov. 4 after a majority of Board members agreed that the rush to hold a meeting while three Board members were out of town was unjustified.

Thanks for all your emails to Board members. Apparently, when enough of you complain, you get results. But the battle isn't over, so keep up the pressure, continue emailing Board members HERE, and be sure to show up at the Nov. 4 meeting, as well as our regular Board meeting coming up next Monday, Oct. 21.

Thanks again!!