Fiduciary Duty: What is it?

From time to time you may hear that the Board of an association operates in a fiduciary capacity for its homeowners. Or you may read about the Board’s fiduciary responsibility in the governing documents. Just exactly what does this mean?

Fiduciary duty simply means the Board has an ethical and legal obligation to make decisions in the best interests of the entire association. That’s a small explanation for a very big responsibility.

Fiduciary duty includes a duty of loyalty to the association, which means that Board members should never use their position to take advantage of the association. They should never make decisions for the association that benefit themselves at the expense of the association and its members.

Fiduciary duty also includes the duty to exercise ordinary care. This means Board members must perform their duties in good faith and in a manner they believe to be in the best interest of the association, with such care as an ordinary prudent person in a similar position under similar circumstances would use.

In short, boards must act in the best interests of the association and act reasonably.

Board members fulfill their fiduciary duty by:

• Developing and using a formal budgeting process
• Establishing and adhering to budgetary guidelines
• Making sure the budgeting process reflects the wishes of the association members
• Promoting understanding and acceptance of the reserve accounts among the members
• Collecting sufficient fees to adequately operate the association 
• Soliciting bids and negotiating appropriate contracts 
• Authorizing expenditures

Keep Warm, but Safe

December, January and February are the deadliest months for home fires, according to the National Fire Protection Association (NFPA). And, heating equipment is the second leading cause of home fires and home fire deaths. That’s why it’s important for you and your loved ones to take extra precautions during the winter.

Thinking of buying a space heater? The NFPA recommends (and our association insists) that you make sure it carries the mark of an independent testing laboratory. Install it according to the manufacturer’s instructions or have it professionally installed. If you have an electric-powered space heater, plug it into an outlet with sufficient capacity. Never use an extension cord. The association does not allow liquid-fueled space heaters.

Turn off space heaters whenever the room is unoccupied or when manufacturer’s instructions say they should be turned off. Portable space heaters are easy to knock over in the dark. Turn them off when you go to bed, or at least make sure they’re placed in lighted areas or out of high-traffic areas.

If you use a fireplace or wood stove, use only dry, seasoned wood to avoid the build-up of creosote, an oily deposit that easily catches fire and accounts for most chimney fires and the largest share of home-heating fires. Use only paper or kindling wood, not a flammable liquid, to start the fire. Do not use artificial logs in wood stoves.

Make sure your fireplace has a sturdy screen to prevent sparks from flying into the room. After the ashes are cool, dispose of them in a metal container, which is kept a safe distance from your home.

Make sure fuel-burning equipment is vented to the outside, that the venting is kept clear and unobstructed, and that the exit point is properly sealed around the vent. This is to make sure deadly carbon monoxide does not build up in the home

Other reminders from the National Fire Protection Association include:

• Don’t use your oven to heat your home.
• Inspect all heating equipment annually, and clean as necessary. 
• Test smoke alarms monthly; install a carbon monoxide alarm outside each sleeping area.

For more information, visit www.nfpa.org.

Tracking Down Air Leaks

Air leaks are one of the biggest saboteurs of your energy bill. They cause your heating and air conditioning units to work overtime. But, you can increase the efficient use of energy by tracking down and eliminating sources of air leaks in your home.

How to Check for Indoor Air Leaks

Close your unit as tightly as possible—shutting doors, windows, flues, anything that vents to the outside. (Leave inside doors open.) Turn on the exhaust fans in the kitchen and bathrooms. This pulls air out of the house or unit and draws outside air in through the leaks. A common way to identify air movements is to hold a lighted incense stick near a suspect area. The smallest movement of air will cause the smoke to move. Another method is to simply hold your damp hand near potential leak sites. Air movement will feel cool.

Where to Check for Air Leaks

Any place one surface joins another (even if it appears closed) is a potential place for air to move in or out of your home—for example, where floor and walls come together, such as around baseboards or carpet edges.

Small spaces don’t allow much air leakage individually, but collectively they can eat up a significant amount of energy. Check all spaces where any type of opening exists such as electrical outlets and switch plates, fireplace dampers, around pipes, attic hatches, mounted air conditioners and mail slots.
Also, be sure to check caulked edges. Don’t assume they’re still air tight. Caulk dries over time and shrinks. Another application might be needed.

Doors and windows are in a category of their own. If they rattle or if you can see daylight around them, they leak. Fortunately, they’re easy to fix with caulking or weather stripping.

Making the Fix

Weather stripping is the simplest and least expensive means to eliminate air leaks around doors. Foam insulation is a variation on caulking that is available as an aerosol spray. It’s well suited for filling large gaps like the holes where pipes or wires enter your home. (Use with caution, however; it expands significantly and can be unsightly if overdone.) For just about everything else, standard caulking is all you need. Once the job is done, test again to make sure you stopped the leak completely.

Food Safety During a Power Outage

Power failures can be one of the most annoying and disabling occurrences in a community. Whether caused by summer storms, power lines crippled by winter ice, equipment failure, an overloaded regional grid or an animal disrupting a power line, electrical outages can be costly and uncomfortable. Without forethought, they can sometimes even be dangerous.

Residents can face many hazards when a power failure occurs, usually without any warning. This includes losing refrigerated and frozen foods. Some food items can be salvaged, however, if you’re prepared.

In anticipation of a power failure:

• Have at least one or two coolers on hand, and at least one spare 5-pound bag of ice in the freezer.
• Know where to get bag, block or dry ice quickly when you need it, particularly if you anticipate a long-term outage. (Caution: Dry ice is made from carbon dioxide, so it requires safe handling. Never breathe in its vapors or touch it with your bare hands.) According to the Food Safety Branch of Kentucky’s Department of Health, a 50-pound block of dry ice will keep a tightly packed, 18-cubic-foot freezer cool for up to two days. 
• Have an instant food thermometer or appliance thermometer available to ensure your freezers, refrigerators and coolers are staying cool enough store food safely.
• Arrange the refrigerator and freezer efficiently. Frozen food will last longer in a full freezer, up to 48 hours if tightly packed. Refrigerated food will last longer—up to four hours—if there is room for air to circulate around items. 

When the electricity goes off:

• Avoid opening and closing the refrigerator unless absolutely necessary. 
• Cook and use perishable food before using canned food. 
• Check the temperature of refrigerated foods if the power is out for more than a few hours. Discard any food item than has been at 40° F or warmer for two or more hours. Exceptions include butter and margarine; hard cheeses like Parmesan and Romano; some condiments like mustard, peanut butter, soy sauce, olives and vinegar-based salad dressing; and fresh, uncooked fruits and vegetables.
• Check the temperature of frozen foods as well. While tightly packed freezer foods will stay frozen for many hours, some items that may have thawed can be refrozen if they still retain ice crystals or have remained at a temperature lower than 40°. Fruit and vegetable juices; breads, rolls and pie crusts; flour, cornmeal and nuts; meat and chicken; and prepared foods and casseroles can be refrozen safely if they have not been at 40° F or warmer for more than two hours.
• After the power comes back on, you may need to deodorize the refrigerator and freezer by washing surfaces with a solution of 2 tablespoons baking soda dissolved in a quart of warm water. Place an open box of baking soda inside the refrigerator to absorb any lingering odors.

Since the appearance and odor of a food item isn’t an accurate indication of its safety after a power outage, use the 40° rule-of-thumb. And when in doubt, discard the food.

While a power can go out any time, most power failures occur between mid-July and late September. But no matter when our community experiences an outage—and it inevitably will—knowing how to handle frozen and refrigerated foods can help us keep your food supplies safe until the lights come back on.

Tips for Protecting Your Identity during the Holidays

Identity theft is a problem any time of the year. But, while consumers are focused on giving during the holidays, crooks are focused on taking. If there’s one thing consumers don’t need, it is dealing with identity theft during the holidays. The National Foundation for Credit Counseling (NFCC) offers the following tips to help consumers protect themselves during the busy holiday season:

• Be aware of your surroundings. Sidewalks and malls will be crowded and shoppers will be distracted—the perfect combination for a pick-pocket. If someone bumps into you, don’t assume it was an accident. Women should clutch purses closely at their side or in front of them with the wallet hidden at the bottom. Men should stow wallets in an inside coat pocket.
• Don’t carry large sums of cash. Charge your purchases or use a debit card. Just remember that credit cards offer some protections that debit cards don’t. When you use a credit card, you can dispute a purchase before paying for it. With a debit card, the money is removed from your account at the time of the purchase. A thief can wipe out your checking or savings account before you ever realize the theft has taken place
• Guard your PIN number at the ATM. Be aware of anyone lurking around the ATM, and if someone is standing too close, simply ask him or her to step back. Thieves can also install devices that read your information at the ATM without you knowing it. If you notice anything unusual about the ATM, use a different one, and report what you’ve seen to the bank.
• Don’t let your credit card out of your sight. Unscrupulous clerks or waiters can copy your card information or swipe your card into a second card reader and later make a new credit card for themselves. Worse yet, they can sell your information to an organized crime ring.
• Lighten your wallet. Remove anything from your wallet that you don’t absolutely need to have with you. That way, if someone is successful in stealing it, they won’t get as much. Never carry your Social Security card with you, but check other cards that might use your SS# as an identifier. If you’re not going to be using your checkbook, leave it at home.
• Make copies of your credit cards. Copy both sides of all your cards. If you lose your wallet, you’ll have easy access to all of your account numbers and phone numbers, allowing you to alert your bank immediately.
• Keep up with all receipts. Not only will you need them to make returns easily, but crooks are very interested in stealing the information they contain. Never stuff the receipts into your car visor or leave them exposed in any way.
• Open your credit card statements as soon as they arrive. Check the bill for any unauthorized purchases. Even better, keep a watchful eye on your accounts by going online and reviewing your accounts each week. If you notice anything out of the ordinary, report it immediately to your bank. Doing so will likely remove any payment responsibility you might have for fraudulent purchases.
• Secure all personal information even while at home. Unfortunately, many times an ID thief is someone we know. During the holidays, you may have guests in your home. Remove temptation by putting personal information out of sight.
• Consider signing up for a credit monitoring service. Such services alert you via email anytime there is an inquiry or other activity to your credit report. In other words, if someone tries to open an account in your name, you’ll know about it. Such services are offered by all of the major credit reporting bureaus, and could be money well-spent.
• Order your credit report. Consumers are allowed one free credit report every 12 months from each of the three bureaus. Order a report now from one bureau, and order another one in January from a different bureau. This will give you a good snapshot of activity and will alert you to anything unusual.

In spite of all your efforts, if you are victimized by ID theft, contact an NFCC Member Agency for help. Their certified counselors can walk you through the steps to recovery. To find the agency closest to you, dial (800) 388-2227, or go online www.DebtAdvice.org. To locate a Spanish speaking counselor, call (800) 682-9832.

For more information and tips about identity theft visit NFCC at www.ProtectYourIDNow.org.

Avoiding Conflict with the Neighbors

We all can just get along. The key? Communication. It’s often the best way to prevent and resolve conflict before it reaches the legal system. You don’t have to be friends or spend time together to achieve a peaceful coexistence, but you should try to be a good neighbor and follow these tips:

Say hello. At the mailbox, while walking the dog or when you see a moving van arrive, introduce yourself. Learn your neighbors’ names and regularly offer a friendly greeting.

Provide a heads up. If you’re planning a construction project, altering your landscaping or hosting a big party, contact your neighbors beforehand.

Do unto others. Treat neighbors as you would like to be treated. Be considerate about noise from vehicles, stereos, pets, etc.

Know your differences. Make an effort to understand each other. Differences in age, ethnic background and years in the neighborhood can lead to different expectations or misunderstandings.

Consider the view. Keep areas of your property that others can see presentable.

Appreciate them. If the neighbors do something you like, let them know. They’ll be pleased you noticed, and it’ll be easier to talk later if they do something you don’t like.

Stay positive. Most people don't try to create problems. If a neighbor does something that irritates you, don’t assume it was deliberate.

Talk honestly. Tolerance is important, but don’t let a real irritation go because it seems unimportant or hard to discuss. Let your neighbors know if something they do annoys.

Be respectful. Talk directly to your neighbors if there’s a problem. Gossiping with others can damage relationships and create trouble.

Remain calm. If a neighbor mentions a problem they have with you, thank them for the input. You don’t have to agree or justify any behavior. Wait for any anger to subside before responding.

Listen carefully. When discussing a problem, try to understand your neighbor’s position and why he or she feels that way.

Take your time. Take a break to think about what you and your neighbor have discussed. Arrange to finish the conversation at another time.

Prepare Your Home for Winter

Fall is the time to prepare for winter—cold and wet conditions not only make you miserable, but they can damage your home. Some winterizing can wait, some can’t. Make a list of what needs to be done, and tackle the time-sensitive tasks first. Here’s a simple checklist to help you get a jump on winter.

Indoor Winterizing

• Examine doors and replace weather-stripping as needed.
• Examine window caulking and reseal where needed.
• Examine and repair vents where needed.
• Clean chimneys and flues.
• Remove items near heat vents.
• Place nonskid runners or door mats outside to help keep water, sand and salt out of the house.

Outdoor Winterizing

• Cut back tree branches and shrubs that hide signs or block light.
• Examine outdoor handrails and tighten if needed.
• Turn off electrical breakers for outdoor equipment.
• Close hose bibs.
• Clean out gutters and downspouts.
• Clear yard drains.
• Spray outdoor locks and hinges with lubricant.
• Stake driveway and walkway edges that may be difficult to find under deep snow.

Assemble, stockpile or refresh winter supplies:

• Batteries
• Candles and matches
• Ice melt and deicer
• Sand
• Snow shovels
• Generator fuel
• Antifreeze