By Ron Duncan
Here’s an independent view of the ACHOA BOD meeting held 18 August 2015 from a pair of eyes and ears not confused by the straight jacket of ACHOA group think.
The meeting began at the usual 5:30 PM start time but without the usual Club crowd…Must have been all on vacation. Following the call to order and the Pledge of Allegiance, we got down to business.
Homeowner comments: I spoke briefly identifying that there was concern about the allocation of $25K for a new web site and $300 for an addition to the Reserve Study to “break out inside vs. outside ArrowCreek Parkway.” I also mentioned the Complaint registered against the ACHOA BOD and our committees for holding Non-public meetings. After those comments, President of the ACHOA Sam Fox, addressed the complaint and basically said they had not violated the law and I should expect a letter from our ACHOA lawyer regarding the Boards position. (The letter was indeed received on 18 August at 2:58 PM after I’d shut down to pick up my wife for the meeting. We could go on for pages about the lawyer’s response to a non-issue but that wasn’t the purpose of the Board meeting, so we’ll save that for a later discussion.)
That opening was followed by the ArrowCreek Club Committee (ACCC) and Communications Committee updates. Mr. Rich Kenney presented for the ACCC a fascinating discourse, which he also presented as hard copy to the recording secretary “so his words would not be confused.”
He went on to state that there are three principles guiding discussion with the FOA. First, dues will not be increased beyond $82 per month. [COMMENT: This would amount to $1,068,624 per year. For what purpose? Subsidize the golf course? If not a subsidy, why is this particular amount even being considered? Just to keep raised dues under $300?]
Second, No Mandatory membership [COMMENT: Then what do we get for our $82 per month ‘contribution?’ Property value ‘stability?’ Prove it.]
Third, No open ended financial commitment. [COMMENT: So, what does this mean in plain English if we aren’t buying anything?] He also mentioned, several times, that he believes this will protect our property values with a vague reference to the Realtor forum. [COMMENT: PROVE IT! There’s been NO factual evidence presented in any forum that supports this belief. So, the challenge is to those who continue to espouse this ‘belief’ to provide factual, repeatable evidence from Northern Nevada to support this belief.] The audience listened politely and asked a few questions before moving onto the Communications Committee presentation by Mr. Norm Reeder.
The Communications Committee is looking into what and when to hold the next informational meeting. There are apparently several topics under consideration not the least of which is a discussion of CC&R and By-Law changes to remove the developer perspective from the documents. That then transitioned to the financial report.
The financial report was reported by Mr. Alan Liebman. Alan presented the numbers and the ACHOA is in ‘Good’ shape financially. He attempted to present the budget management approach as being ‘like’ accrual accounting. Unfortunately, when talking to former CFOs, this is a definite non-starter. In fact, initial program/project engineers use the technique of equally spreading funding across twelve months and then accounting for variances due to the erroneous spread of spending. After a year or two as a program/project manager one learns to spread the expenditures across the twelve months based on the anticipated time of spending the money. It makes absolutely no sense to have snow removal monies allocated for June through October. Then we moved on to the reserve discussion.
The Reserve Committee update, presented by Mr. Gary Smith, was most fascinating. He again presented the need for an electronic sign at the entrance for announcements of community interest, the upgrade of one of the tennis courts with 10 ft fencing, $25k for a new website and lastly $300 for reserve study work to allow the ‘golf portion’ of the reserve study to be broken out (inside vs. outside AC parkways?). Several people questioned the need for the electronic sign and the projected cost. In addition there was discussion of the $300 for the reserve study when there isn’t any golf related deal on the table. Also, questions related to upgrading the residents center kitchen were asked. The response was, with the supposed purchase of the golf course, there wasn’t a need or ‘clamor’ to make that change. [COMMENT: For those who do not belong to The Club and wish to have neighbors and friends enjoy a party at the Residents Center, a fully functional kitchen would definitely be an upgrade for our amenities. Clamor? No need to clamor if it was already approved for 2015!?] Reports proceeded from there with the next one of consequence being Governing Documents.
The Governing Documents Committee has updated the CC&Rs and By-Laws to conform with current NRS wording and deleted the developer language. Ms. Rakusin presented some of what the committee considered major minor changes and asked for a community review of their draft documents. [COMMENT: There are at least two changes that deserve careful scrutiny. First, the elimination of reference to some amenity language will further disconnect the CC&Rs and By-Laws from our Articles of Incorporation rather than bring them into synch. The second, is a proposed change to the voting requirements to defeat a proposed budget. A possible third issue, is that the changes do not restrict the dues increase capability of the ACHOA BOD. See the initial discussion of the ACCC.]
The final presentation worthy of note was by the Fuels Management Committee, Mr. Moll. This was a disturbing presentation that requested a five year funding profile and efforts to support committee work that will police and impact all property owners. The claim, no proof was offered, that a wildfire prevention act will require individual property owners to comply with guidelines, such as a 100 foot perimeter around residences, established by this committee.[COMMENT: Mr. Moll, please provide your facts. We googled and found the HEALTHY FORESTS RESTORATION ACT of 2003. Is that it? We are not in a FOREST! Or maybe you are referring to the H.R. 1009 unapproved bill languishing in sub-committee, Wildfire Prevention Act of 2015, to provide hazard mitigation assistance through FEMA? It is NOT Nevada specific.) It is not clear where Mr. Moll’s ‘act’ was legislated but it certainly doesn’t sound like Nevada. If it indeed is the above Federal PENDING Act, then implementation in Nevada would require several changes to Nevadan’s property rights. This point was raised by the audience and dismissed by Mr. Moll and the ACHOA BOD.]
The meeting concluded on that note after no additional homeowner comments were offered.
Thanks, as always, for your interpretation of my remarks. Let me first state, again, for the record, that my name is Richard Kenny, not Kenney, as clearly shown in the minutes of various meetings, etc. When I detailed the three “no go’s” on what could be recommended by the ACCC, I did not have the advantage of fantasizing about what might be recommended in the future, only what wouldn’t be recommended. Given I can only comment on fact and not fantasy, I am, as always, at your disadvantage. If and when we present a solid proposition, I will be more than happy to discuss the facts. Of course, you will continue to argue that any effort to control the use of the property on which the golf club sits is irrelevant to property values in ArrowCreek. On that point, we will continue to disagree.
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I sincerely hope you can accept this very public apology for misspelling your name. That’s an error that I should have caught prior to any posting and will take every step possible to ensure it does not happen again.
As for any disagreement about the value of a private enterprise within the confines of our development, I do not perceive it as a disagreement so much as one of perception. I understand your, and others, ‘belief’ that the private enterprise adds value to property within the development. However, from a factual perspective, there has been no proof offered (factual, repeatable, authenticated) that the private enterprise adds any value to property within our development. Should that ‘proof’ be made available, I for one would most definitely change my tone and agree with the ACHOA Boards position on support or acquisition of the private enterprise.
In the mean time, we certainly have contrary perspectives about the impacts of this Non-Residential Use of property within the ArrowCreek development.
Ron & Susie, Great summary but I wish you folks spotlighted the omission of a report by our Security Director. For years I have been disappointed with Rick and Jeff’s reports at ACHOA meetings. In the past, I have even advocated that the BoD develop a template for each gentlemen’s report because of the narrow subject matter each now provides orally. Rick always focusses on traffic issues; Jeff is a one topic guy too. I think each are paid more than $100K per year yet no one is sure what they are really doing. With our Board as their boss, I think they are under supervised and underworked! Both need a report template!
P.S. Ron, Congrats on the ADRC appointment….a stepping stone of ACHOA Director??
Bill, thanks for catching the security hole. Actually, I was looking forward to it because I was wondering what happened to the stop sign at Marble Ridge Court and E ArrowCreek Parkway. I thought maybe some drunk “missed the curve” and ran it over. It was replaced the next day. But then the School Bus sign for the same corner was gone and is still missing.Do we have vandalism or something else going on?? Would have been nice to have had a security report.
I agree that a written report should be required of all committees and HOA departments for each board meeting. The reports should be presented by the group lead. If the lead is unavailable, the report is still due and should be presented by a representative or a board member.
Good points, well made. It has been irritating me that we don’t know what the HOA staff, including Rick Reyome, security officer, Jeff Anderson, operations manager, and Brenda, the Activities Director, is actually doing for us on a day to day basis to earn their quite respectable salaries and bonuses. We only see the budget, when it is ready to be rubber stamped. Financial accountability, and staff productivity/performance monitoring should be the next issues to tackle once this golf course debacle is over.