This article attempts to explain not only assessments but why they have not been reduced given COVID-19's restriction of amenities. 

ABOUT THOSE PESKY 'RECREATION' (and other) FEES\

Please understand that the term “recreation fees” does not appear in the Long term Lease Agreement signed between UCO and Benenson Capital Company, owner of the recreation facilities (Main Clubhouse, Hastings Building, several satellite pools) and lands thereunder (1980) or in the Notice of Amendment for all Condominium Associations in Century Village West Palm Beach (1999: the so-called “Millennium Agreement, a link to which is available on the left-hand side of the OUR VILLAGE blog)

Section 1 of the Millennium Agreement defines the two monthly assessments that unit owners pay: (a) the “Rent Increase Schedule” and (b) the “Operating Agreement.”

The rent increase schedule was set for ten years in 1980; ten years in 1990; and twenty more years in 2000 (hence the label “Millennium Agreement”).

The Operating Agreement outlines the process whereby the annual operating and maintenance budget for W.P.R.F. (Benenson's property manager) is established through discussions between the Operating Committee and the W.P.R.F. staff.

Currently, for 2021, the operating rent approved by the committee is $46.68 for every unit and the “average” base rent is $89.92 for a total of $136.60. (“Average” because square footage determines base rent.[Ironically, a one owner two bedroom pays more than a two owner one bedroom])

Alluding to the reduction in fees after the hurricanes of 2004 severely damaged the Clubhouse, some CV'ers have asked why the current monthly fees have not also been reduced, given that COVID-19 initially closed and now has restricted the use of Benenson's recreational facilities. There are, however, two significant and interrelated differences.

First, whereas the hurricanes physically destroyed the building itself, obviously suspending operations and maintenance therein, COVID-19 has, if anything, greatly increased operations and, especially, maintenance. As the chart below shows, over the past 39 weeks, COVID-19 has necessitated an additional 7402.5 hours of GLOW cleaning and maintenance. Residents' safety from this extremely contagious and dangerous (especially to the elderly and/or health compromised) demands approximately 190 hours per 7-day week, 27 hours daily, of continuous and continual cleaning and disinfecting. To meet the increased demand, (a) GLOW added a staff member to address COVID-19 cleaning; (b) additional janitorial staff had to be added for cleaning and disinfecting so that (c) Maintenance staff could be diverted to help with moving of furniture, floor markings, etc. to meet CDC requirements at all pools, as well as deep clean H/VAC units in the Clubhouse and Hastings.

MAINTENANCE & STAFF:
ENVIROSAN II AEROSOL	H/VAC CLEANING (MAINT ONLY)	USED M - F
FLASH II AEROSOL	MULTI-SURFACE (ALL STAFF)	USED M - F
LYSOL/CLOROX WIPES	MULTI-SURFACE (ALL STAFF)	USED M - F
HAND SANITIZER (STAFF & RESIDENT)		USED M - F
TOTAL HOURS = MAINT. STAFF HOURS SPRAYS COILS M - F , APPROX. 1.5 HOURS PER DAY = 7.5 HOURS A WEEK, APPROX. 39 WEEKS X 7.5 = 292.5 HOURS
GLOW:
DISINFECTANT BETCO FIGHT BAC RTU	MULTI-SURFACE	EVERY DAY
NABC NON-ACID DISINFECTANT	BATHROOM CLEANER	EVERY DAY
HAND SANITIZER	RESIDENT USE	EVERY DAY
GLOW HOURS :
DISINFECTING MCH from 7am - 8pm - totaling 13 hours a day, 13 x 7 = 91 hours a week, APPROX. 39 WEEKS X 91 HOURS = 3,549 HOURS
DISINFECTING HASTINGS from 7am - 8pm - totaling 13 hours a day, 13 x 7 = 91 hours a week, APPROX. 39 WEEKS X 91 HOURS = 3,549 HOURS
TOTAL DISINFECTING HOURS FOR BOTH HASTINGS & MCH = 7,098 HOURS                          292.5 + 7098 = 7402.5 TOTAL HOURS
UV LIGHTING INSTALLED: (AC TROOPER DID INSTALLATION)
MEETING ROOM C = 3 HOURS
ADMIN. OFFICES. X 2 UNIT = 6 HOURS
BILLIARDS ROOM = 3 HOURS
TOTAL HOURS = 12 HOURS FOR AC TROOPERS
THEATER ( IN PROCESS, PARTS ORDERED)
AS OF 12.3.2020

Second, because the hurricane's property damage triggered a reimbursable business interruption insurance claim, W.P.R.F. was able to reduce unit owner's fees. Conversely, W.P.R.F.'s business interruption claim filed in 2020 as a result of the pandemic's closing the recreation facilities was promptly denied as the specific language in most business interruption policies requires physical damage to the property to trigger a covered loss. Additionally, coverage for viruses is also specifically prohibited.

As you may have surmised, the Millennium Agreement expires on December 31, 2021. The Millennium Committee is currently negotiating with W.P.R.F. on Benenson Capital’s behalf not only about the base rent and annual increases, but also – and perhaps more importantly – about which entity (unit owners or Benenson) is responsible for certain expenses, especially capital improvements.

Thanks to the W.P.R.F. staff , especially Dan Cruz, Monica Wells, Aja Mejia, and Eva Rachesky their time, clarification, and numbers. Any errors are mine.

Richard Handelsman

ps. COVID-19 has also caused expenses at other facilities: On 12/5, Glow Cleaning Plus performed a deep cleaning of the laundry, with emphasis on sanitizing all “high touch” areas with virucidal products. Floors were scrubbed and mopped with bleach solution, and the rest room was also sanitized.

(LCAM”S report, Our Village, 12/6/20)