Air Conditioner Charges

To Building #5 Shareholders:

The board was asked why tenants were paying monthly a/c charges ($15/unit) if they were being forced to remove them for construction work. In a normal building, none of this would be an issue because each apartment’s electricity use is measured and there is no special a/c fee. Because Luna Park doesn’t have the ability to do this (yet), our electricity costs are bundled into our maintenance. When the heavy duty power outlets were put in, the board had to decide how to share the higher cost for a/c energy and they did the best they could. The basic idea is that the cost for an a/c unit’s use in the hot months is estimated and then split out over twelve monthly payments. This is why we pay an a/c fee in winter months too.

The question for us was how to determine what to charge or credit someone forced to take out an a/c? We’ve come up with what we think is a fair answer. Although we know that sometimes a/c’s are used even in winter, on average, the most use is in the hot months of June, July, August, and September. For one a/c unit at $15 per month, a tenant will have paid $180 for the entire year. If we divide that annual sum of $180 by the four hot months it comes to $45 per hot month for the use of one a/c. Each tenant will be credited $40 per hot month they’re forced to remove their a/c and the $5 difference will count toward the other 8 months. To be clear, you will get the $40 credit for the month ONLY if you are forced to remove your a/c that month. If your a/c is removed June and July but back in for August and September, you will only get credit for those first two months your a/c was out.

To give an example, let’s say you live in building #5, wing 2956 and started in January 2010 with one a/c on your account at $15 per month and your maintenance is $600. In March you’re asked to take the a/c out of your window and you’re only allowed to put it back in August. Every month in 2010 you will pay $615 EXCEPT in June and July when you only pay $575. If you have three a/c units, in that example you’d pay $645 every month in 2010 except June and July where you’d pay $525. You don’t have to do anything; it will automatically be reflected in your account.

Any wing receiving the credit will have those a/c lines powered off, beginning the morning of June 1st.

Sincerely,
Luna Park’s Board of Directors

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