Thatchmont Condominium
First Condominium in Massachusetts!
This page describes the role of the trustees at Thatchmont and
contains some
information that may be useful to unit owners serving as a trustee.
|
Overview
|
Thatchmont Condominium is organized as a legal entity known as a Trust,
which
owns the common area spaces of the condo complex and controls the
accumulation
and spending of money associated with the upkeep and cleaning of these
common
areas.
The Trust has a Board of Trustees that are responsible for
high-level decision
making and that oversee longer-term planning for the condominium trust.
|
Why be a Trustee?
|
In a busy world, it is often hard to find trustees willing and able to
work
diligently for the condo. However, a strong Board is critical to the
condo's
operation and to the cost effective and timely maintenance of our
buildings
and grounds. Past experience has shown us just how critical this is.
Here are the main benefits of being a trustee:
- Solve problems or help make improvements you would like to
see
- Save yourself from unnecessary condo fee increases (a very
real threat)
- Meet your neighbors
- See how others have made use of the same space you own
(this can be very interesting)
- Share snacks and drinks at meetings
|
Make up for the Board
|
At any given time there are seven trustees, one from each building and
one
additional "trustee at large" selected from among the buildings. Each
trustee
is elected at the annual meeting (usually in November) and serves for
two
years, with up to two consecutive terms. The terms are staggered so
that
at most four trustees come up for re-election each year. This helps to
preserve continuity in management of the condominium.
Note: The bylaws actually allow for as few as three
trustees and do not
enforce term limits, but generally trustees should step down after four
years
unless no replacement can be found.
Some of the trustees hold offices, including Chairman,
Treasurer, and
Secretary:
- The Chairman presides over the meetings and is
responsible for
drawing up the agenda before each meeting and making sure that the
agenda
is distributed to unit owners or posted in hallways at least a week
before
each meeting (posting may be delegated to the management company or
another
trustee).
- The Treasurer reviews and presents the financial
statement that is mailed by the management company before each meeting.
The most important
aspect of this role is to chart the condo's progress on its longer-term
financial goals, and to remind other trustees when their planning is
impacting
this goal. Taking a proactive role to money management is the best way
to make sure the condo is using its resources wisely. It also helps to
maximize
the long-term value of your property.
- The Secretary records the business of the meeting
and writes up
the meeting minutes that are subsequently distributed to all unit
owners.
The minutes act as the formal record of the meetings, so should contain
a detailed and accurate representation of all business that took place
at the meeting. Minutes are currently also being posted here
on this website.
These officers are chosen by the trustees themselves, the first time
they meet after they are elected.
|
Trustee Meetings
|
The trustees meet every month or two in one of the trustees' units, on
a
rotating basis. Meetings are generally about two hours in length,
including
some time for socializing. The representative from the condo management
company also attends these meetings.
All meetings start with a time that is available for unit
owners to bring
their concerns or questions to the trustees.
The rest of the meetings is according to the bylaws also open
for all unit
owners to attend, although there are rare exceptions to this rule, for
example
if the trustees need to discuss a lawsuit against the Trust or other
sensitive
issues that need to be held private.
At each meeting, the Chairman is responsible for facilitating
discussion
and making sure that the meeting stays on topic according to the agenda
that
he or she prepared before the meeting. Most agendas contain the
following
sections:
- Unit owners' time
- New business / new projects
- Status/update on old business and projects
- Review of financial statement
- Open discussion / social hour
Current hot topics such as "Landscaping Design", "Parking Lot
Repaving", or
"Water Savings Plan" can generally be added as sub-topics within the
above
framework. Since the agenda is posted for unit owners to see, adding
the most important items to be discussed is useful in helping them
decide whether
or not they wish to attend the meeting.
|
Powers of the Trustees
|
The condominium's bylaws give the trustees relatively broad powers to
run the
condo. This includes ability to raise and spend money; obtain loans;
maintain,
add to, or alter common area space; rent out apartments, parking
spaces, and
other property of the Trust; and so forth.
Trustees also have the power to fine unit owners that are
violating condo
bylaws (up to $100/day in 2005 dollars, adjusted for inflation) and
they may force
entry to a unit in order to effect repairs if a unit owner is either
unavailable
or unwilling to repair a problem that is affecting common area or other
unit
owners.
However, any major changes to the condominium that would
either result in
reduction of existing services to unit owners, that would result in
substantial fee increases, or that would cause other substantial
changes to
the services or quality of life of unit owners does require a vote by
all unit
owners before they can be authorized by the trustees.
Trustees must also be sensitive to the potential for conflict
of interest that
might arise from spending condo resources in ways that might benefit
only
a subset of unit owners (such as themselves).
As long as trustees are acting in good faith and not violating
any laws, they
cannot be prosecuted as individuals for actions they took as trustees.
If a
lawsuit is brought against any of the trustees, any settlement or legal
fees
payable as part of the lawsuit is paid by the Trust and not by the
individual.
|
Role of the Management Company
|
The Trustees' role is one of advising and providing oversight, and only
seldom
do trustees actually take care of projects themselves.
Most condo business is actually carried out by the condo's
management company,
which is authorized by the trustees to spend specific monies in the
completion
of specific projects, and who manage the contracting of day to day
cleaning
and routine services required by the condo.
The management company also keeps all records for the
condominium, collects
unit owner fees, manages condo bank accounts, pays bills and taxes,
manages
rental of our apartments and spare parking spaces, obtains insurance,
ensures
that routine maintenance tasks occur as needed, and so forth.
Except in emergencies, the management company cannot make its
own decisions about which maintenance projects should be pursued, how
much money to allocate
to them, or how to perform them. These are the things that the trustees
must
decide on and authorize.
In practice some projects may be undertaken by enterprising
trustees or unit
owners, and are not really appropriate for assignment to the management
company. Examples of these include organizing the annual picnic,
participating
in a landscaping redesign process, researching options for complex
projects
such as redesign of the parking lot, dealing with neighborhood issues
such as
noise or trash on Egmont Street, running the website, or reworking the
unit
owners' handbook.
|
Best Practices
|
These are some tips based on past experience:
- Let the management company handle conflicts -- When
the trustees
need to confront a unit owner, fine a unit owner, or engage in
otherwise
unpleasant enforcement of the condo rules, this should be delegated to
the
condo management company. There are two reasons for this: (1) trustees
should be neighbors first and trustees second (although this doesn't
absolve
them of obligation to enforce rules!), and (2) if litigation results
from
a problem, it is clearer that the trustees were acting on the part of
the
trust and not as individuals.
- Be good natured -- As a trustee, you may be
subjected to the
frustration owners feel when things go wrong. Be good natured about
this and
comiserate with them. The Trustee / Management Company system is an
imperfect
one that often benefits from friendly reminders, and suffers if owners
get
into conflicts with trustees or each other. If you feel someone is
being
particularly rude or aggressive, it may be appropriate to remind them
that you
are a volunteer and/or refer them to the management company as the most
appropriate contact for actually getting things done (which is after
all their
role!).
- Follow-up Follow-up Follow-up -- Trustees are busy
volunteers. The
management company is a business that runs many other condos. Meetings
can be
long with many details covered. All of these are reasons for careful
record
keeping and follow-up to make sure that projects that are authorized
are also
completed. This can be done using the minutes of the meetings, or it
can be
done by keeping a seperate project list that is reviewed periodically.
- Be fiscally conservative -- It's easy to spend
money, especially if
only 1/37 of it is yours. But trustees need to be very careful about
how they
spend the condo's resources. With huge projects like the parking lot
looming
in our future, it is critical to build and preserve the reserves and to
engage
in careful planning rather than compulsive spending. The alternative is
huge
special assessments that may come at a time when you can least afford
them.
Also, lack of reserves, a record of previous special assessments, and
the
existence of pending large and expensive maintenance projects all
substantially lower the value of your condo.
- Plan ahead -- For much of its history, Thatchmont
has reacted from
year to year rather than planning ahead. This is one of the reasons our
parking lot is in the state that it is in, and it explains how in one
year our
reserves plummeted unexpectedly from $130K to zero. With planning and a
bit of
discipline, we can substantially improve our facilities and reduce
financial
uncertainty. Use this website or similar records to build and maintain
a
five-year project and financial plan, and communicate this plan to
future
trustees (who will further edit and maintain it). See for example the five year plan spreadsheet (MS Excel
format).
- Take Action -- Don't expect the management company
to do literally
everything that is needed to run the condo. They are often a very good
resource of information and can help make suggestions for improvements
and
projects that are planned by the trustees, but they cannot replace
direct
initiative on the part of motivated unit owners or trustees looking for
a
better solution to a problem. Good examples include researching options
for
complex or unusual projects (like our recent change to bonsai style
pruning of
the yews on Thatcher St or the low-cost irrigation system used on
Egmont St),
updating and maintaining the condo unit owners guide and materials like
this
website, or planning the annual picnic. These are all things that won't
happen
unless you make them happen.
|
Perrenial Problems and Solutions (or Lack Thereof)
|
There are some issues that come up over and over again. Trustees should
be
aware of these:
- Too Much / Too Little Heat -- Our units do not have
individual
thermostats as you would have in a modern building. This is the result
of the
fact that there is only one large boiler per block of three buildings,
and not
one heater per unit. In this system, it is impossible to control heat
on a
unit-wide basis using a thermostat, and there is no way to add
thermostats
without totally changing the heating system found in these buildings
(at huge
expense).
Instead, the system works by monitoring outside
temperature and the
temperature of steam pipes at key locations. This is used to get the
heater to
run enough to service all the units on each block (there is one heater
per
block of three buildings) with enough steam to heat the unit.
Within-unit heat
levels are then controlled by the adjustable bleed valves on the
radiators.
See this guide for more information on
how to
make radiators work properly.
- Noisy Neighbors -- We have at times had complaints
among neighbors
about noise levels during sleeping hours. If you know do not know the
person(s) involved or feel uncomfortable confronting them, please
contact the
Brookline police, who have specifically encouraged us on several
occasions to
call them with noise complaints. See the contact
information.
- Ugly Dumpster -- The dumpster is unsightly and unit
owners
sometimes do not place their trash properly inside the dumpster, fill
the
dumpster with large uncollapsed boxes or other materials, or place
large items
outside the dumpster where they will not be collected by the trash
pickup
service. This is sometimes also sometimes aggravated by use of the
dumpster by
contractors working in the area, or even contractors that aren't
working here
at all but know about our dumpster as a convenient place to leave trash
without being challenged.
The dumpster is currently being moved to the top of the
lot during the
summers, which has reduced misuse of the dumpster. Unfortunately, it
must
be moved back to the bottom of the lot each winter, since the upper lot
is sometimes needed for snow storage.
The alternative of using smaller trash recepticles behind
each building has
already been tried. It resulted in trash all over the complex rather
than in
just one location and led to an infestation of rats. Curbside removal
of trash
is only available from the town at exorbitant rates and is subject to
the same
potential for spreading trash and rodent infestation we saw with
smaller
recepticles in the past.
We have already posted signs that list acceptible types of
trash (no hazardous
waste, collapse large boxes, etc) on the dumpster and these are often
ignored
by unit owners. The best solution to this is to talk to people when you
see
them violating the posted rules and ask them nicely to please dispose
of their
trash properly. Most unit owners will get the message and will bow to
gentle
peer pressure. Those that do not can be fined by the trustees, and may
be
subject to larger fines for illegal dumping (e.g., for leaving a fridge
or
other appliance that contains toxic waste).
All unit owners have the right to confront contractors
dumping renovation
debris and similar trash in the dumpster, and no unit owners have the
right to
dump or to authorize the dumping of such materials in the dumpster. All
contractors must remove debris as part of their contract with unit
owners.
Failure to do so can also result fines up to $10,000 and additional
fees to
recoup extra costs charged to the condominium by the trash removal
company.
- Wasted Water -- Water prices are very high locally
due to the
harbor cleanup -- visit the islands
for
a return on your investment! At home, it is particularly important to
avoid
running toilets, dripping or running faucets, and continuing use of
old-style
toilets. A running toilet costs about $4000/yr, dripping faucet about
$500-1,000/yr, a dribbling or running faucet about $1,000-2,000/yr, and
old-style
toilets about $1,000/yr.
The best solution to this problem is to encourage unit
owners to repair
bad plumbing. Flushometer toilets can be fitted with 1.5 or 3.0 gallon
flush regulators for very little money, and most other dripping or
running
faucet/toilet problems are also quite cheap to fix. The management
company
can recommend plumbers on request.
Trying to get people to waste less water, e.g. by not
running water while
shaving, is not only intrusive but also nowhere near as effective; it
takes
a heck of a long shower to waste anywhere near as much water as is used
by
a single dripping faucet.
- Selling the Rental Apartments -- Thatchmont has two
rental
apartments owned by the Trust, that are rented out for extra income.
Unit
owners often suggest selling these units for today's high prices and
using the
proceeds to build the reserves, pay for expensive projects, etc. This
is a bad
idea because the income generated by these apartments would be lost,
the money
would most likely be spent within a few years at most, and fees would
have to
go up by about $100/month per unit. By running a number of scenarios in
the five year planning spreadsheet
(MS Excel
format) it becomes quite clear that the best long-term fiscal choice is
to
retain and continue renting these apartments indefinately.
- Landscaping -- There has been some strife and
disagreement about
what should be done with the landscaped areas in front of our
buildings.
Issues have included volunteerism vs. no volunteerism, spending lots
and lots
of money or being happy with what we have, what is and is not
aesthetically
pleasing, whether or not to "waste" water on plants, and much more.
Often
disagreement in these areas has led to paralysis resulting in failure
to
perform any maintenance, or payment of huge sums of money to
landscapers for a
"cleanup" that has little or no lasting value (important lesson: do not
assume
landscapers know what they are doing; they can rake and mulch but many
lack
even a basic understanding of gardening and plants).
To make things simpler, the two sides (Egmont and
Thatcher) are now making
landscaping decisions independently. Currently, volunteers are working
on some
aspects of maintenance and design over the longer term, but
professionals are
used for larger jobs such as raking out leaves in the late fall or
early
spring and mulching when that is desired.
In making landscaping decisions, trustees should be sure
to consult the people
that have been involved in the landscaping for many years, as this
helps to
avoid remaking previous mistakes and/or causing damage to the plantings
we do
have (there are perenials that may not be evident at all times of
years). For
this reason, most landscaping decisions have been made by unit owners
interested in joining a landscaping committee, within the scope of the
budget,
and not by the trustees themselves.
See also the Project List,
which includes a
listing of routine landscaping tasks according to time of year.
- Superintendent -- Thatchmont used to have a live-in
superintendent.
Alas, for a condo the size of ours this is no longer a cost effective
option. Using a commercial cleaning service and contractors for small
repairs
costs us about half of the previous cost for hiring a superintendent.
|
Other Useful Info
|
|