The board has been researching tankless water heating systems for some time now.  Thanks to the efforts of Francisco and others, we have secured a fantastic offer that will solve our ongoing conventional tank water heater problems—all at a low initial cost.  Best of all, all owners will quickly recoup the cost in energy savings and Las Palmas will be on the road toward “going green.”

When our condo buildings were constructed, for whatever reason, the laundry rooms were not equipped with drains.  Thus when water heaters fail, which has happened with increasing frequency, extensive water damage results, not only in the original condo but also in the floors below.

Our HOA manager, Francisco, had a demo tankless system installed in Board Member Bruce Turner's condo. It has been used and tested over the course of the last several months with surprisingly good results.  The units work well.  Francisco’s report on its performance is detailed below.  Click on the You Tube link below to view a short video demonstration.  Stiebel Eltron, the German manufacturer of the state-of-the-art tankless system, has offered us a excellent price if we install a minimum of 50 units or more at one time.
 
Watch Video here http://www.youtube.com/watch?v=CUek9UdQkOQ

The unit pictured below is a 240 volt 50 amp Stiebel Eltron model DHC E12. As mentioned in the video, installation requires an additional breaker and wire size modification to the existing electrical panel in the laundry room.  Its close proximity to the water lines make the installation relatively easy and inexpensive.   Click on this link to view the manufacturer’s web site for further info:
 http://www.stiebel-eltron-usa.com/dhc-e.html .

ADVANTAGES:
Installation is less than or comparable to the cost of a conventional water heater.
Significantly reduces the chance of water damage, as there is no tank to leak or burst.
Energy savings--no electricity is consumed unless water is used.  You will not be paying to heat a tank of water while your condo is not occupied.
Constant endless hot water at 125 degrees Fahrenheit.  There is no tank to "recover" after several showers or wash loads for example.
The system automatically controls water flow to maintain the proper temperature.
Recoup cost in little over a year in energy savings. (About $25.00/mo. to keep a tank hot, less the operational cost of the tankless.)
Compact design frees up laundry room space.
It's good for the environment and, in the future, we may be able to tout Las Palmas as a "green" resort
Three year parts warranty.
POTENTIAL DISADVANTAGES:
Initial cost outlay of $339.00 - $100 allowance = $239.00 , including all taxes and installation which we feel is a super-deal.  Villa cost is $875. -100.
Although still warm enough to shower, water temperature may drop in the coldest winter months.  Although unlikely, there is a possibility that you may not be able to use more than one fixture at a time if the incoming water is really cold.
Since this unit is designed for one or two simultaneous fixtures, you may experience water a slight flow drop for each hot water fixture that is opened at the same time.
A larger more expensive unit is required for the Villas and 3 bedroom condos: $775.00.  It is also available for other condos who do not want to experience a drop in the water flow n the cold winter months.
The Board is proposing that the tankless heaters be installed as follows:
The Association will absorb some of the cost to the home owner of the initial installation of 50 units or more.  To do that, the HOA will remove and deliver the old tanks.  Each owner will receive a $100.00 trade-in credit. ($50 from HOA & $50 from installer)
The HOA rules would be amended to ban any future water tank installation in the condos.  Any owner who does not participate in the initial upgrade would be required to replace any future hot water system with a tankless system of their choosing—arranged, installed and paid for on their own.
The proposed tankless systems will be installed by an authorized dealer/installer from Mexicali.  As mentioned above, a 50 unit minimum is required to obtain the price quoted and to receive the $100.00 trade-in credit.  See price quote.

Please be prepared to vote on an HOA rule amendment banning the use of water tanks in condos at the next HOA owners meeting, tentatively scheduled for late January, 2012.   If approved, all water tanks will be banned after they reach the end of their useful life.  When that point is reached, owners who have not already gone tankless, would be required to replace with a tankless system of their choice at their expense.  Owners who do choose to participate will be invoiced in the next dues billing notice after installation as follows:  1 and 2 bedroom units --$239.00.  3 bedroom and Villas--$775.00
 
 

We will keep you posted on our progress and installation will be coordinated so as not impact rentals.
 
Many thanks David Frenznick and Francisco for assisting the HOA in putting this deal together.
 
Sincerely,
 
Las Palmas Home Owners Association