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TIME TO RETHINK HURRICANE PREPARATIONS
October 1, 2004
In the wake of Hurricane Charley, Frances and Ivan, we need
to rethink our preparedness for hurricane and other major
emergencies. Associations, local governments, management
companies, sub-contractors, suppliers and other
professionals related to community associations, need to
realize that whatever plans that we had in place for
emergencies was inadequate. This is especially true for
multiple storms and/or slow-moving storms that cause
destruction in large areas that will overload the resources
of the public and private sectors in terms of preparedness
and post-storm clean-up.
Within days of the passing of Hurricane Frances, we saw
many associations that sustained roof, structural, common
area and landscape damages. For the most part,
associations were not prepared for damages and most are not
prepared for the resultant costs that now accompany the
post-storm clean-up.
Due to the lack of budgeting for emergency funds and storm
clean-up funds, many associations will now have to resort
to emergency special assessments, deplete any savings that
may be on hand or borrow from banks to help accomplish the
clean-up and repairs.
If the damage to your association was covered under your
Windstorm Policy, most associations do not have the funds
and/or made provisions to have the funds to make up the 2%
Windstorm Deductible. These funds will also have to be
made up in some fashion that was not budgeted.
Recently, the National Weather Service predicted that we
have entered into a period of “Above Normal Hurricane
Activity.” If this is true, and it seems to be, we need to
begin to make preparations and provisions for this future
heightened activity in terms of planning and budgeting. In
most cases, this will require increases in future
maintenance assessments and reserve funding.
It may make sense to hire structural engineers to evaluate
and survey your buildings and common elements and make
recommendations concerning their ability to withstand
various strength hurricanes. Are there items and elements
that can be changed, altered or retrofitted to strengthen
your building and structures? Have the engineer recommend
and evaluate these items and then act upon them, as they
may help to lessen any future damages and expenses.
To begin preparing, we need to educate our Membership on
the realistic costs on the planning for, actual preparation
of a storm and then for the cost of the post-storm
clean-up. Begin including in your operating budgets or
your reserves for the following items:
1. Pre storm labor
2. Pre storm tree trimming
3. Post storm labor
4. Post storm tree trimming & removal
5. Storm repairs
6. Repair and replacement items not
covered under the “deductible”
7. If the above is not included in the
Operating Budget, then establishing
Reserves for these items.
We recommend that associations have reserves for these
items. After the reserve is in place, if we have a season
without a hurricane, the reserve would not have to be
funded until they were used. Whereas, if these items are
included in the operating portion of the budget, they need
to be included year after year. What happens if the funds
are not expended? Will this create a surplus that needs to
be returned to the owners? By this method, you have
defeated the purpose of saving for an emergency and having
the funds available immediately.
After Hurricane Frances many associations have been unable
to get contractors to respond to their needs quickly.
Should an association have emergency equipment, chain saws
available and supplies on hand to protect their residents
and common elements, etc.? Prior to the hurricane season,
should the association have contractors “on staff” or “on
retainer” in order to ensure that they will show up and
respond quickly in the preparation of a storm and in the
aftermath of a hurricane? This list of contractors would
include roofers, electricians, plumbers, landscapers, tree
trimmers, HVAC, irrigation and labor. Other contractors
might include screen, railing and gutter contractors, pool,
glass, sign, awning companies, elevator, generator and pump
contractors. When hiring or considering a contractor or
professional consultant for your association, it might be
wise to inquire about their emergency preparedness plans.
Do these contractors have the resources and labor to handle
a situation like Frances? If they will not be able to
respond to or be available prior to a storm, or after the
storm how can help you’re your association? At least
choose the contractor that also has a plan in place to
respond to your needs.
Finally, if associations are unable to or are unwilling to
budget for these expenses, then at least set up a
Line-Of-Credit with your bank, that could be used in case
of an emergency. In this way you can respond quickly to an
emergency without having a special assessment that is not
only time consuming, but at that point-in-time, difficult
for many to fund. Have credit cards for Home Depot or
Lowes available for supplies and materials for immediate
repairs. Have accounts set up with labor companies,
whereby you can call for day labor and pay later. Prepare
for the worst and hope for the best. But overall, be
prepared as well as possible.
We need to begin to prepare, plan and save for emergencies,
especially for future heightened hurricane activity or be
prepared to suffer the consequences and costs of being
complacent. We all know now what we have to do in the
future, it is the right thing to do in order to secure our
homes, protect our investments and our way of life without
too many disruptions.
Copyright 2007© Associated Property Management of the Palm Beaches, Inc.
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