Root Cause Problem of the Current ACHOA Board Debacle

Posted on November 5, 2015 by arrowcreek411

By Jim Verhey

I think I may have found the Root Cause Problem of the current ArrowCreek Home Owners Association (ACHOA) Board debacle proposal for the purchase of the 475 acre ArrowCreek Golf Course Open Space from the Friends of ArrowCreek (FOA) at super inflated pricing and unbelievable maintenance costs.

Root Cause Problem: Our Homeowners Association does not have a Community defined Mission/Vision/Values/Principles document to guide the management of our common interest Community!

Last week, I thought it might be good to see how we are measuring up to our stated Mission/ Vision/ Values and sought a copy of our AC Mission/ Vision/ Values documentation.

First, I dug into the limited Associa AC website info about our purpose/mission/vision and found references to Sam Fox’s brief statements as Board Chairman about 1) Controlling our Destiny 2) Maintaining our Property Values and 3) Exercising our CC&Rs. I also remembered Rich Kenny’s Negotiation Committee presentation meeting about pre-negotiation goals but that wasn’t very helpful either.

Second, I emailed Jeanne Tarantino at Associa, our Community Management Firm, and asked for the ArrowCreek Mission/ Vision/ Values statement. She replied that she was not aware of one………………..

So, having struck out, I did a quick search of best practice Common Interest Community Mission/ Vision/ Value Statements, did some downloading, editing, and am now delivering an example of a consolidated model document that could approximate our community statement for your consideration.

Sample Mission/Vision /Values/Principles/Practices
for Homeowners Association, Inc.
11/1/15

Mission:

Our Mission is to establish, enhance &preserve the sense of community and quality of life in our community through effective and efficient management of common areas, enforcement of rules and covenants, support of initiatives that strengthen bonds among residents, and investment in capital improvements that benefit the greater good of the community..

Vision:

We envision a community of caring ,friendly, respectful neighbors working together in a private, cooperative voluntary association to achieve an inspiring lifestyle and quality of life while increasing property values by being a desirable place in which to live, volunteer and enjoy the benefits of family, friends and community.

Values:

To achieve our vision and mission we value in all our leadership & fiduciary duties & actions: long range cooperative and collaborative leadership, stewardship and financial propriety, respect for others, community participation, transparent communications, wisdom, teamwork, service, honesty, integrity, fairness, best practice management principles & methods,consistent firmness and common sense, cooperation, and sense of community

Principles:

  • Define, facilitate, protect and enhance the value of our common interest Community Brand by promoting and maintaining quality services,through prudent management of common services and areas for sustaining the Community Brand.
  • Utilize the experience of well qualified and proactive total community focused Board Members to make and implement responsible decisions and to be good stewards regarding the use of funds and assets belonging to the Association. Conduct business with transparency, perform regular owner services/needs assessments, promote new ideas for community services for the Community Brand, provide regular financial statements including statements of receivables and expenses on a periodic basis.
  • Uphold the Covenants, Conditions and Restrictions (CC&Rs) and policies of the Homeowners Association by taking a fair, ethical and objective approach in representing the interest of all homeowners to ensure that all additions/changes to lots, homes, and property in the community will preserve and/or enhance the value of the properties as a whole.
  • Treat every issue which comes before the Board with respect. Work with residents in a professional, objective, and ethical manner and resolve or respond to requests in a timely manner. Resolutions and responses will be clearly communicated to affected parties. In the event of a denial of a homeowner’s request, a reason for the denial will be provided, and where possible, suggestions to resubmit for consideration will be included.
  • Communicate with homeowners in a regular and timely manner through appropriate mediums. Facilitate opportunities for community activities and committees promoting a close-knit neighborly community that works together for the good of all.

Board of Directors Practices:

  • Encourage collaborative and diverse participation that includes an involved membership.
  • Establish and maintain appropriate and effective forums to actively listen to the concerns of the community.
  • Satisfy, maintain and enhance community support requirements relating to property values, legal and safety issues.
  • Build community relationships that capitalize on best practices and improvement opportunities.
  • Seek continuous improvements in effective and efficient management of the Association.
  • Establish and maintain a strong financial foundation for all operations of the Association.
  • Be forever mindful of and preserve the Association’s Mission Vision and Values.
  • Serve in the best interests of the Association.
  • Evaluate all issues on their merit to the Association, our Mission, Vision and Values, and not with regard to any particular interest group.

Member Practices:

  • Good Neighbors First – There is no better substitute for resolving community issues as neighbors.
  • Volunteerism – We highly value participation in the Association that extends beyond the normal commitment(s) of being a member/resident.
  • Property Maintenance – Property owners/residents will maintain their respective property in accordance with our covenants, conditions and restrictions that enhances the Association and does not detract from the value of our properties or common areas.

(*This sample is a composite of four example Association statements collected on the web and edited by Jim Verhey, ArrowCreek Home owner. Also see Good to Great an excellent download from the Community Associations Institute which will improve the draft model for a community based collaborative definition.)

Posted in ACHOA, ACHOA BOD, ArrowCreek, ArrowCreek 411, ArrowCreek HOA, ArrowCreek411, Board of Directors Practices, Community Member Practices, Community Principles, Community Values, Mission Statement, Vision Statement | Tagged , , , , , , , , , , , , , , | 3 Comments

Reblog: Is the FOA Getting Rich…

Posted on November 5, 2015 by arrowcreek411

Is the FOA getting rich from the sale of the land to the HOA?

Posted on November 2, 2015 by ArrowCreekTruth

Absolutely not. In fact, there are no plans to return any of the $3.3M to FOA investors. The FOA is not making a profit with this sale. The funds not used to pay off the bankruptcy debts will remain in the business to ensure that The Club at ArrowCreek remains a viable operation.

The FOA paid $2.6M (see chart below) to purchase the land out of bankruptcy and pay off delinquent water and tax bills. The FOA has committed to paying these expenses as part of the sale of the land. As much as these investments keep the golf courses playable, these dollars are also investments in the community, preserving the views and open space common to all. The FOA keeps the courses green, providing some protection for our homes from rapid spread of a wildfire. (More on that later.)

bankrdol
(Source: FOA management)

In addition to paying the assumed debts, the FOA has invested in much needed infrastructure repairs, maintenance and improvements to the Clubhouse and tent. The roof leaked, much of the kitchen equipment was broken and unusable, and the tent was ripped and torn. The FOA has invested additional money to return the Club at ArrowCreek to viability.

It is important to note that the clubhouse is a valuable resource for the entire community:

  • All residents are invited to attend the HOA Christmas party held in the clubhouse every year.
  • The Art Guild, which is completely separate from the golf club, has been hosting a couple of art shows per year featuring all ArrowCreek resident artists. The shows are open to the public and very well attended.
  • ArrowCreek resident children enjoy the Easter egg hunt every spring.
  • The HOA uses the clubhouse for board meetings, because the Resident’s Club doesn’t have room for all attendees at the moment.
  • Political candidates hold forums at the Club, open to all.
  • There are birthday parties and business meetings, which nonmembers attend.

Even though ownership of the clubhouse land is not part of the deal, the clubhouse is a community resource, maintained at no cost to residents. It is a valuable asset to the entire ArrowCreek community.

Posted in ACT, ArrowCreek, ArrowCreek 411, ArrowCreek411 | Tagged , , , , , | 2 Comments

Reblog: 31 Dollars a Month….

Posted on November 5, 2015 by arrowcreek411

Is your peace of mind to preserve your home value and our community worth $31.00 per month? 

Posted on November 5, 2015 by ArrowCreekTruth

The current loan terms the HOA has negotiated are for $3.3 million amortized over 15 years with an interest rate of 5.0%.  That equates to $26.00 per month per lot for 15 years. The loan may be adjustable but this is the term now so far as we know.

The second question that is asked is “How much will it cost to maintain the land we are buying?” The independent Browning Reserve Study has placed that number at $2.00 per month per homeowner lot through 2018 when a new Reserve Study has to be performed pursuant to NRS chapter 116. See the ACHOA web site for the Browning Reserve study. The total cost for the loan and reserves is $28.00 per month per lot.

The third matter that comprises the $31 is real property taxes which might increase by $3.00 per month per lot. This amount is waiting reassessment and may go down. The real property tax assessment would appear on tax bills and not be added to the HOA dues.

There are two speculative matters, the details of which are not known to everyone, but are completely manageable..

The first speculative matter that is a potential cost to lot owners if the HOA purchases the golf course is if the FOA allows some of the course to go brown. This is called “dormancy.” This cannot happen, if it all, until 2017 per the agreement between the HOA and the FOA.  If dormancy occurs, during or after 2017, the FOA will still provide irrigation. If, for example, the FOA could justify closing 18 holes, then the cost for this would be $80,000 for 90 days, or $74 per lot for the 90 days ($40,000 for 9 holes for 90 days).  It would be up to the HOA Board in place at that time to determine if it wanted to continue or to use the land for some other purpose. These sums are much less than the $575 to $700 per month per lot for 18 holes that had been projected in other communications.

The final potential cost is fuels reduction/mitigation for the golf courses.  This amount has been put forth, again by lesser informed parties, as “cost unknown.”  While the exact cost for this work is unknown at this time, a report conducted for the HOA in 2013 by RCI, an engineering, resource and environmental services company, evaluated both the HOA common areas and both golf courses in need of fuels reduction.  Areas were prioritized based on the highest hazards existing at the time. Only a small portion of the golf courses not covered by existing fairways, parking areas, and buildings were evaluated and listed as fuel reduction priorities. The HOA asked the company doing the report to provide priorities for the golf courses for information only.  A copy of the completed report was provided to the golf course owners at the time.

If the land is purchased by the HOA, a current analysis of those golf course areas identified in the initial report would have to be conducted again in order to re-prioritize the need for fuels reduction on both golf courses. Based on priority level, funds would be set aside to schedule fuels reduction and treatment by priority areas over time. The HOA would also apply for available grant funding to offset costs as the HOA has done to help fund fuel reduction and treatment in the common areas identified in the 2013 report. For example, the projected amount for the identified fuels mitigation of the 81.5 HOA common areas was approximately $100,000. The HOA applied for a State grant, and will receive two-thirds of the amount. (The State grant provided 2/3 of the total funds required for the fuels mitigation and treatment. The HOA had a required match of 1/3 or approximately $34000.) That fuels mitigation/treatment work outlined in the HOA grant application will be completed by the end of this year.

Sources: ArrowCreek ACCC and the Fuels Reduction committee

Posted in ACT, ArrowCreek, ArrowCreek 411, ArrowCreek411 | Tagged , , , | 3 Comments

Who Is Calling the Kettle Black?

Posted on November 5, 2015 by arrowcreek411

Ahhhhh! Maybe the ArrowCreek Community will start getting some information now that the FOA has created their own party “ArrowCreek Truth (ACT)” – however, contrary to ACT belief, there is no more attribution or source identification in their material than what the ArrowCreek411 writers have for these “facts.” See for yourself.

Why We Think ArrowCreek Home and Lot Owners Should Vote in Favor of the Proposal

Posted on November 2, 2015 by ArrowCreekTruth

  1. A successful 36-hole golf course in our community increases our property values.
    1. Why do you think land/community developers build the golf course before or in parallel with the sale of homes and lots?
    2. Recent University studies and multiple meetings with local realtors also confirm this 
point.
  2. A successful 36-hole golf course is the lowest cost option to having very significant green spaces, which help protect our community in the event of a wildfire. Without the golf course paying to water and maintain the courses, the cost to keep this land green would easily be +$100 per month per lot.
  3. In the best of worlds, the golf club would already be self-supporting with no concern for its future viability, but this is not the case.
  4. The Friends of ArrowCreek have paid or are already committed to pay approximately $4 million of the funds they have raised in order to: purchase the club out of bankruptcy, cover the club’s losses to date and provide funding for the repair/improvement of the club.
  5. The Friends of ArrowCreek have consistently stated that their purpose and objective is to operate a successful 36-hole golf course. But, if a 36-hole golf course does not prove to be viable, then the Friends of ArrowCreek will seek other options to protect their investment, including the development of some portion of the 36 holes of land that they own. Not a certainty they can do so, but it would be a compelling use of the land and a viable option versus bankruptcy.
  6. The price to be paid for the land could be on the high range when compared to undeveloped land in the county or on the low end when compared to the prices paid for other golf course properties in our area. Either way, at cost of $3.3 million or about $30 per lot per month this proposal gives:
    1. The HOA control of the land and the certainty it will not be developed upon and will remain a green space (either with the success of the club as the lowest cost option, or with failure of the club and whatever option the HOA chooses at that time) and;
    2. The Friends of ArrowCreek a better chance for success, as the funding, after paying off $1.2 million in taxes and water district assessments, will help cover losses as they work towards profitability and provide for some limited capital improvements.
  7. The Club at ArrowCreek has made a dramatic recovery in the last year and has grown from 140 golf members to over 520. They project they will reach their breakeven point during 2016. Hopefully, they will be successful as this represents the lowest cost option for the community to protect our property values and provide important wildfire protection.

We believe it is in the best interest of our community for it (through the HOA) to gain more certainty over the use of the land in question in order to help assure it remains green at the lowest possible cost; and that The Club At ArrowCreek is successful, which will help protect our property values and simultaneously keep the protective green space of the golf course in place.

Joe and Shelly Petite

Posted in ACT, ArrowCreek, ArrowCreek 411, ArrowCreek411 | Tagged , , , | 2 Comments

I Had Lunch with my Hilton Head Buddy…

Posted on November 4, 2015 by arrowcreek411

By Wayne Krachun

Had lunch with my Hilton Head buddy. He asked if The Club was doing all it could to increase revenues.

I replied that membership was growing.

“You don’t bank members,” he said, “You bank revenues. Are the membership fees at market price?”

“Well, The Club offered a wonderful promotion rate for a year” I said.

“Nice. How do the full paying members feel about that?”

“They’re likely feeling like suckers, but don’t you have to start somewhere?”

“Why don’t they try closing 9 or 18 holes, to reduce costs,” he asked?

“Because they would likely face lawsuits from owners abutting the course.”

“But didn’t you mention that if your HOA buys the land, The Club could then close 9 or 18 holes, and you’re obligated to maintain it until the Board decides what to do with it?”

“Yes” I replied, “but then we get sued! Pretty sweet deal for The Club, huh?”

“And what if your Board gets stacked with FOA sympathizers or investors? It could saddle owners with maintaining the closed course for quite a while, Wayne. Tell me, has The Club considered opening golf, the bar and restaurant to the public to augment revenues?”

“Certainly not. Members would never stand for that. It compromises the panache; the appeal; the brand. The whole idea of a Club is snobbishness, is it not? It’s PRIVATE.”

“If being PRIVATE is so dear to The Club, doesn’t seem disingenuous of them to expect the PUBLIC to subsidize them,” he asked?

To which I replied, “I’m losing my appetite, Joe.”

Posted in ACCC, ACHOA, ArrowCreek, ArrowCreek HOA, ArrowCreek411, Bail Out Golf Course, Control Our Destiny, FOA, Friends of ArrowCreek, Golf at ArrowCreek | Tagged , , , , , , , , , , | 1 Comment

Reminder: ACHOA Meeting is Tonight at 5:30

Posted on November 3, 2015 by arrowcreek411

All owners are invited and encouraged to attend board meetings.

TONIGHT’S MEETING
Time: 5:30-7:30 PM
Location: The Club at ArrowCreek
remember

A revised tentative timeline for the golf course purchase will be presented during that meeting. The Board will also vote on the managing company contract on November 3rd.Three Board member positions are up for election this December (two pro golf course purchase: Rakusin, Elliot, one against: Krisch) The proposed tentative voting period regarding the Golf Course purchase proposal is to start on December 15th when ballots are to be mailed out following the distribution of background materials on 23 November.

So far, the decisions that brought us to this point have been based on the votes of a few board members and the influence of a few committee members. We have incomplete information about the personal interests of our board members and committee members, although they profess that protecting property values is their only concern without any factual data with regards to the golf property purchase. We have little information as to their qualifications to guide the community through the process of a big real estate transaction like the purchase of the 475 acres of golf property. What we do know is that recommendations by committees have been ignored. Comments by homeowners during board meetings have been ignored.

If you want to change the status quo, want to slow down the accelerated path towards the golf property purchase as proposed by the ACCC, if you want to completely understand the ramifications of buying the golf property and associated changes of our CC&R’s, then take control over your destiny as an AC resident:

Come to the meetings, and vote!

ArrowCreek Resident updated message

Posted in ACHOA, ACHOA BOD, ArrowCreek, ArrowCreek HOA, ArrowCreek411 | Tagged , , , , , | Leave a comment

ACHOA: How to Petition as an Organized Group to Present at Informational Meetings

Posted on November 2, 2015 by arrowcreek411

ACArrow2

— New Associa Email Received Today: Mon, Nov 2, 2015 8:31 pm —
— (not on https://community.associawebsites.com/sites/ArrowCreek at this time) —

RE: ACHOA – ORGANIZED GROUPS, HOW TO PETITION TO PRESENT AT INFORMATIONAL MEETINGS

Dear ACHOA Members,

The ArrowCreek Homeowners Association, Inc. (ACHOA) Board of Directors is planning numerous informational meetings in early December. These meetings will involve multiple presentations by Board recognized groups, entities and organizations. The below link is a document that details the definition of these groups. The document also detials how groups can petition the Board for securing a position to make a presentation concerning the Ballot Proposition about the acquisition of the 475 acres of land within the community. Please review and submit your petition by November 25, 2015.

CLICK HERE TO VIEW/PRINT THE DOCUMENT “ORGANIZED GROUP NRS 116.31035”.

Thank you.

The ACHOA Board of Directors

Posted in ACHOA, ACHOA BOD, ACHOA Recognized Organized Group, ArrowCreek, ArrowCreek HOA, ArrowCreek411, HOA, HOA BOD, Informatioal Meetings, NRS 116.31035 | Tagged , , , , , , | Leave a comment

ACHOA 2016 Reserve Study with Golf Released to Homeowners

Posted on November 2, 2015 by arrowcreek411

ACArrow2

— New Email Received Today: Mon, Nov 2, 2015 8:09 pm —
— (not on https://community.associawebsites.com/sites/ArrowCreek at this time) —

RE: ACHOA RESERVE STUDY WITH GOLF

Dear ACHOA Members,

CLICK HERE TO VIEW/PRINT THE ACHOA RESERVE STUDY WITH GOLF

Browning Reserve Group recently completed its updated Reserve Study with the inclusion of the potential common area assets that the ArrowCreek Homeowners Association, Inc. (ACHOA) may acquire if approved by the ACHOA members. The entire report includes all infrastructure and land under the 36-hole golf course which includes sprinkler system piping larger than two inches in diameter, bridges, culverts, cart paths, and drainage. (Pages 16 and17) The “Current Replacement Costs” of all current ACHOA assets with the proposed acquired property would be $19,625,011. (Page 2 ACHOA Nevada Members Summary Section) The “Estimated Future Replacement Cost” of all current ACHOA assets with the proposed acquired property would be $30,573,480. (Page 52 of the Reserve Fund Forecast Component Method).

The Browning Reserve Study indicates that monthly Reserve Fund Impact for the proposed acquisition will be an increase of $2.00 per month per ACHOA member. This would increase the Reserve Fund monthly assessment to $82.00 per month for 2016 and 2017 per ACHOA member. The total increase would be $26,064 added to the ACHOA Reserve Fund. (1,086 X $2.00 X 12 Months) The Five Year required Reserve Study would re-evaluate the proposed acquired property in late 2017 to determine any revisions to the Reserve Monthly Assessment for 2018, 2019, 2020, 2021 and 2022. Future projections are provided on page 31 in the report in the section called 30 Year Reserve Funding Cash Flow Method.

If you have any questions, please email them to the ACHOA at acservice@associasn.com or send them care of Associa Sierra North to 10509 Professional Circle, #200, Reno, NV 89521, or call 775-626-7333, so that your questions can be forwarded and responses provided.

Regards,
The ACHOA Board of Directors

Posted in ACHOA, ACHOA BOD, ArrowCreek, ArrowCreek HOA, ArrowCreek411, HOA BOD, Reserve Study, Reserve Study with Golf | Tagged , , , , , , , | 1 Comment

Bob McDonald Announces He Is An ACHOA BOD Candidate

Posted on November 2, 2015 by arrowcreek411

ArrowCreek411 received an announcement from Bob (Robert) McDonald, a resident in good standing, that he is also competing for an opportunity to serve as a Director of the ACHOA. Mr. McDonald’s background in police work brings a distictive set of qualifications that would bring unique capabilities to the ArrowCreek Board of directors. His concerns for openness and integrity are refreshing.

His decision to run for office was prompted by the perception that a new degree of openness, integrity, and inclusiveness was needed to move the community forward

We expect to hear more from Bob in the coming days.
ArrowCreek411

*******************************************

I Need and Want your VOTE
To change the direction of
ArrowCreek

Bob McDonald

I Stand For and Behind:

    • High integrity and I will represent the interests of the homeowners
    • Transparency in all matters
    • Maintaining low ACHOA fees
    • Maintaining and improving our community amenities
    • Open Communication
    • Open and publicized committee meetings as allowed by NRS with scheduled meeting times to allow more community involvement



    This ad is consistent with the guidelines of NRS 116.31034 and is sponsored by Robert McDonald

Posted in ACHOA, ACHOA BOD, ACHOA BOD Candidate, ArrowCreek, ArrowCreek HOA, ArrowCreek411 | Tagged , , , , , , , | Leave a comment

Holiday Art and Music Extravaganza at The Club at ArrowCreek

Posted on November 2, 2015 by arrowcreek411

rememberThe ArrowCreek Art Guild Presents their “Holiday Art and Music Extravaganza” on Sunday November 8th, 11am to 5pm.

The Club at ArrowCreek will stage the venue for the artists to exhibit their diverse artistic talents which include; painting, sculpture, glass, wood carving, jewelry, fabric arts, mosaics, ceramics and photography.

The Clubhouse will be available for visitors to enjoy “Happy Hour” prices on select beverages and plates while being accompanied by local musicians through out the day. Raffle tickets will be available for purchase. The proceeds will be donated to Step 2, and organization that provides women struggling to overcome substance abuse, poverty and family violence to rebuild their lives. A raffle ticket will be given in exchange for bringing hotel size toiletries which will be donated to Cross Roads which is a housing program that assists local men and women in making the transition from substance abuse and homelessness to a productive and healthy lifestyle.

Address: 2905 Arrowcreek Pkwy, Reno, NV 89511 Phone:(775) 850-4653

Nov8Art

CLICK HERE TO VIEW/PRINT THE EVENT FLYER

Posted in ArrowCreek, ArrowCreek Art Guild, ArrowCreek Artists Guild, ArrowCreek411, Art, Art Appreciation, Art Show, Holiday Art and Music Extravaganza, The Club at ArrowCreek, Things To Do In Reno | Tagged , , , , , , , , , , , | Leave a comment