THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Saturday, May 13, 1995 TAG: 9505110337
SECTION: REAL ESTATE WEEKLY PAGE: 02 EDITION: FINAL
COLUMN: Common Ground
SOURCE: G. Robert Kirkland and Michael A. Inman
LENGTH: Medium: 77 lines
As the chairperson of the finance and budget committees, I am trying to find ways to save money. With all the street lights, pool pumps, clubhouse, etc., our largest expense outside of water and sewer is for electricity.
Do you have any suggestions on how we can cut our costs without losing the quality?
Yes, there are a number of ways that the association can save on utility costs.
The first is with water. By purchasing and giving each unit owner water-restrictive shower heads or water saver packs for the toilets, usage can easily be reduced. The problem is getting owners to install them, so you might consider offering installation.
Other communities have found that by reducing leaks that water usage can drop significantly. This can be done by checking the sewers at a time when few residents are using water.
If the drains show a steady water flow, then you probably have leaks that can be corrected. Every faucet and toilet in all units should be checked and repaired if necessary.
Some communities have gone even further. They have purchased and installed low-usage commodes in all units. While the toilet is part of the unit and not a common element, the savings to the association can easily be justified. The savings in one community was enough to pay for all the commodes in less than a year.
All these suggestions require repairs to a unit, something an association rarely does, but now the savings justify the action.
As to electrical savings, they can come in a number of ways. The first is to replace all lights with more energy efficient bulbs such as halogen or fluorescent. This alone can often cut an electric bill by 10 to 15 percent.
Also, check all air-conditioners, pumps and motors to make sure they are working properly. You should check filters, oil, belts, etc. Check new replacement equipment to see whether they are more energy efficient than the old equipment.
Set times for equipment that may be running all the time but is not needed 24 hours a day.
Another alternative is to check with your electric company to find out if there are alternate rates available. For example, you may be paying for street lights at a higher rate than required.
The power company has a special rate for exterior lights under certain conditions that could save you 30 percent or more.
Yet, another approach is to look at the computer-type devices that help you regulate your usage. These systems, like Energy Sentry, regulate when certain equipment operates.
This regulation of operation, plus taking advantage of the various rate structures from the power company, can result in significant savings. We know of several circumstances whereby the association is saving as much as 30 percent on electricity.
In these cases, an evaluation must be done to determine how long it will take to recover your investment in the new equipment. We feel that any device that pays for itself within one year is great, two years is good and three years is OK.
Do the analysis carefully and check to make sure that the equipment and installation are warranted by the manufacturer and the installer. By careful investigation, review and application any association can probably reduce its utility consumption by 15 to 25 percent. And be sure to turn out the lights on the way out of the clubhouse. MEMO: G. Robert Kirkland, president of a Virginia Beach property management
consulting firm, and attorney Michael A. Inman specialize in Virginia
community association issues and are affiliated with the Southeastern
Virginia chapter of the Community Associations Institute. Send comments
and questions to them at Real Estate Weekly, 150 W. Brambleton Ave.,
Norfolk, Va. 23510. To submit questions by phone, call 446-2033; fax:
446-2531.
by CNB