January Associa Website Updates

Posted on January 19, 2015 by arrowcreek411

Cool beans!! The top middle section of the ArrowCreek HOA Associa Sierra North website has new links to officially released HOA documents AND at the bottom of that section is a link to ArrowCreek411! IMPORTANT: The words above the link do say it is not an official HOA site. TA DA! We are now full circle entwined, back and forth to your hearts’ desire!  (The Associa link here on ArrowCreek411 is on the right-hand side under ArrowCreek Links.) Under the ArrowCreek411 link on the Associa website is an important paragraph to read pertaining to the relationship of the two websites. The ArrowCreek HOA Board is truly trying to get more timely information to you within their limitations.

The Updates on the Associa site are for the following:
FAQs Cover Letter
Club Purchase FAQs
Browning Reserve Study for Golf Acquisition
January 2015 Member Letter and HOA Responses

Any Renter, who tries to access these Associa links, can report here in a reply if they can read them. (When you click on the link it will download the document, not open a new window.)

Posted in Communication, HOA | Tagged , , , , , , | Leave a comment

Concerned Renter: AC Golf Acquisition Reserve Study

Posted on January 18, 2015 by arrowcreek411

Sunday, January 18, 2015 Email to Arrowcreek411 Webmaster from A Concerned Renter living in the ArrowCreek (AC) community:

I am a “Concerned Renter” and would certainly need to do a lot more due diligence before we purchased a property in ArrowCreek. In fact, we did decide not to purchase in ArrowCreek until the Golf Course issue was settled …

I did notice that your website hits are going up! I wish more people would sign up for your emails … it is a great way to be reminded that there are new posts on the website.

Since I do not have access to Associa or the Board to ask questions, I thought I would drop you a note and see if you knew the answers or had access to additional information. Here are my questions after a cursory inspection of the Reserve Study:

Component Definition:

  1. “Client input will further define this component.”
  2. “Client input regarding on-going maintenance, if not paid thru operating, will further define this component.”
  3. “Client provided information regarding cost and frequency of replacement will further define this component.”

Comment: It is a concern that the Reserve Study has so many ill-defined components. Since yearly “Transfer to Reserves” numbers are incorporated in current and future Operating Budgets, ill-defined components could have a significant effect on the Reserve Study, future Operating Budgets and future Assessments.

Client initiated cost reductions:

  1. “2014 – Cost reduced 50%, $nn,nnn to $n,nnn, per client 11/28/14 email.
  2. “2014- $nn,nnn anticipated parking lot repair in 2015 per client 11/17/2014 email.”
  3. “2014- Remove and replace in 2020 per client. Cost per unit decreased from $3.5 to 2.15.”

Comment:  Although client-suggested changes to the Reserve Study are not that unusual, the following information should be disclosed:

  1. The entity who initiated the changes and their relevant background
  2. The Reserve Company’s opinion of the changes

Component Lifetime:

  1. “It is possible that sub-components of this system can be replaced or rebuilt to extend its life.”

Comment: Possible? What effect does “possible?” have on the component lifetime?

 Operation Budget:

  1. “This is for miscellaneous xxxxx. As xxxxx is typically replaced as needed, most replacements will be from operating.”
  2. “Painting is completed through operating.”

Comment: There are a number of components that will be maintained through current and future Operating Budget. This will increase the future Operating Budgets by unknown amounts. What are these additional Operating Budget items? The impact of the acquisition on the future Operating Budgets should be disclosed (at least estimated).

Inflation and Interest:

  1. Inflation cost = 2.5%
    Interest income =

Comment: Inflation and Interest values can have a significant impact of the reserve numbers. Inflation at 2.5% seems modest, at best. I could find no mention of the Interest %. Since Interest % has an impact on the FFB, it should be disclosed.

 

Additional Comments: This Reserve Study strikes me as the best case scenario … not the worst … or even the most likely. With all the unknowns in the Reserve Study and on future Operating Budgets and Assessments, I would be hesitant at this time to agree with the purchase of the Golf Course (not that I actually have a vote). I agree with the CNA that the “Vote”, as I currently understand it, violates the governing documents regarding the majorities required for passage. Although I can understand why the Board wants to make the issue into a “One Vote” issue, for transparency and legality, I think it needs to be separated into a vote on each issue.

Additionally I can understand the FOA’s desire to make the sale and get out of the golf course business BUT I don’t understand the rush and believe that the deadline for the vote is artificial.

 

Good luck,
A Concerned Renter
(My name doesn’t matter since I am “only” a renter.)

Posted in ArrowCreek Community Club, Assessment, Economic Impacts, Reserve Study | Tagged , , , , , , , , , , | Leave a comment

January 15 Notice of Violation to ACHOA

Posted on January 17, 2015 by arrowcreek411

The Concerned Neighbors of ArrowCreek sent the following Letter of Complaint via certified mail to the ArrowCreek HOA via Associa Sierra North for delivery on January 15, 2015.

This is the link for the Complaint Alleging Violation of Governing Documents Request for Placement on Board Agenda

Posted in Articles of Incorporation, HOA, NRS | Tagged , , , , , | Leave a comment

ACHOA Golf Acquisition Reserve Study

Posted on January 17, 2015 by arrowcreek411

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

From: acservice=associasn.com@reply.bronto.com [mailto:acservice=associasn.com@reply.bronto.com] On Behalf Of ARROWCREEK HOA
Sent: Tuesday, January 13, 2015 3:56 PM
To: AMI acservice
Subject: ArrowCreek HOA – Reserve Study for Golf

*****************************************************************************
ACArrow2

RE: ACHOA – Golf Acquisition Reserve Study

Dear ArrowCreek HOA (ACHOA) Members:

As part of our due diligence, the ACHOA Board of Directors upon recommendation from the ArrowCreek Community Club Committee (ACCC) contracted for an independent Reserve Study from Browning Reserve Group to provide detailed information for the ACHOA members about potential reserve costs for consideration by the ACHOA members in deciding whether or not to approve the purchase of “The Club At ArrowCreek.” This study is similar to the Nevada Revised Statutes (NRS) and Nevada Administrative Code (NAC) Reserve Studies completed for current assets owned by the ACHOA.

CLICK HERE to view/print the GOLF ACQUISITION RESERVE STUDY

The Browning Reserve Group’s “Independent Reserve Study” provides a thorough evaluation of “The Club At ArrowCreek’s asset replacement schedule and needed Reserve Expenditures or capital improvements over time. The Expenditure Forecast in this study provides (1) current estimated replacement costs, (2) useful life of the assets,and (3) the estimated remaining life of the assets. It provides the ACHOA members with the ability to evaluate the total cash reserves necessary to repair, replace, restore and maintain each major asset wihtin the acquisition. It also provides the necessary information concerning proper funding levels as per the NRS and NAC. The actual cost of this study is being paid for by the ACHOA at a cost of $7,500.

The “ArrowCreek Golf Course Acquisition” Report is available with this email and will be posted on the ACHOA website along with the original ArrowCreek 2014 Update Report prepared for the 2015 Fiscal Year. The ACHOA 2015 Monthly Reserve Assessment is $80.00 per month per ACHOA member. The “ArrowCreek Golf Course Acquisition” Report establishes a $17.00 per month assessment per ACHOA member. This new report indicates an annual aggregate amount of $221,544 ($17.00 X 1,086 X 12 Month) if the ACHOA members vote to acquire “the Club At ArrowCreek”.

The ACHOA Board and the ACCC have been negotiating with Arnold Palmer Golf Management (“APGM”) that the $221,544 be paid to the ACHOA as an expense of the Joint Venture and not be paid by the ACHOA members. If negotiations are successful, this would mean that APGM and the HOA would share in the reserve costs for these newly acquired assets and the costs would come out of the joint venture revenues. The final decision is still pending at this time. The results of the negotiations will be reported to the ACHOA membership when completed.

If the operational vote by the ACHOA membership is to not enter into a Joint Venture, but to just purchase the property, the ArrowCreek Golf Course Acquisition” annual reserve fund would then need to be paid by the ACHOA members through an increased monthly assessment of $17.00.

Sincerely,

The ACHOA Board of Directors

Associa Sierra North
10509 Professional Circle, Suite 200 | Reno, NV 89521 | (775) 626-7333
931 Tahoe Blvd., Suite 2 | Incline Village, NV 89451 | (775) 832-0888

Posted in APG, Arnold Palmer Golf Management, ArrowCreek Community Club, Assessment, Communication, Economic Impacts, HOA, Reserve Study | Tagged , , , , , , , , , , , | 1 Comment

CNA Questions ACHOA Spending

Posted on January 17, 2015 by arrowcreek411

Questions from the Concerned Neighbors of ArrowCreek (CNA);
1.) Why is the ACHOA Spending our money on a property valuation study? Is it the intent of the ACHOA to ‘justify’ their decision to pursue a joint venture? What other explanation is there given the body of research already published/posted on ArrowCreed411.wordpress.com.
2.) Why is ACHOA spending our money on a ‘demographic economic’ study of our CIC? Peoples finances are not the business of the ACHOA. When people speak out and say they can’t ‘afford’ a $100 increase in dues you should take their word for it, not question the people who compose your constituency. Again is this a misguided attempt to ‘influence’ the outcome of the due diligence efforts, underway within the ACHOA committees?

Looking forward to your responses, either e-mail or posting to ArrowCreek411.wordpress.com.
Ron Duncan for CNA

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

Dear Mr. Duncan,

Thank you for submitting your inquiry to the board. Below is their response to your questions. This correspondence will also be posted on the HOA website.

I wanted to give you an update on the HOA information to be posted on the website and emailed. Due to various reasons, getting information out was delayed. However, today, the board-approved FAQs and the Golf Acquisition Reserve Study were emailed to all the members on the email program. These documents were sent yesterday to be posted on the ACHOA website; I am hoping the documents will be posted within a day or so. This afternoon I am sending homeowner letters and responses, such as yours below, to be posted so that all the members can have access to various questions and responses. A link to the ArrowCreek411 website is also being requested today and the meeting Minutes will also be posted this week. Thank you for your patience.

Sincerely,

Jeanne Tarantino, PCAM, AMS, CMCA
Nevada Certified Supervising Community Manager
Sr. Vice President
Associa Sierra North
10509 Professional Circle #200, Reno, NV 89521
Office Phone: 775-626-7333

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

Dear Mr. Duncan:

Thank you for your questions sent in your email dated January 10, 2014. The Board appreciates your time in formulating your questions and we will respond to each question asked.

1. The ACHOA Bylaws state that “All assessments shall be collected by the Association. Association funds shall be paid out or distributed as authorized or directed by the Board.” The NRS requires that all common expenses (operating budget), including the reserves, must be assessed. [NRS 116.3115] The ACHOA Board must adopt budgets for revenue and expenditures and reserves and collect assessments for common expenses. The ACHOA Board can make contract and incur liabilities on behalf of the ACHOA as outlined in NRS 116.3102. The 2014 Budget and 2015 Budget were approved by the ACHOA Board members and ratified by the ACHOA members. The ACHOA Budget allows the Board at their discretion to incur expenses or liabilities that fulfill their fiduciary responsibility to the ACHOA membership. AS such. All approved expenditures by the ACHOA Board are within the approved framework of the ACHOA 2015 Budget. Please review at the ACHOA website.

2. The Phase One Property Valuation study is the result of numerous ACHOA members voicing their concerns that the information provided in the August 24, 2014 ACCC presentation was inaccurate and incorrectly reflected the current literature concerning golf course communities. There are other ACHOA members who believe the information provided was accurate and disagreed with the contrarians. It was decided by the Board that an independent study for all ACHOA members to review should be provided. The Board felt that an independent study that collected all of the literature on the subject of golf course communities with a bibliography and summary opinions provided by an independent economist was in the best interest of the community. The studies intent is to provide to the community a transparent factual document that could be reviewed by the ACHOA members as they consider the issue that they may face concerning – “How does a golf community impact my property values.”

3. The demographic or census survey is a direct result of the Candidate Night meeting that you (Mr. Duncan) participated in concerning the ACHOA Board’s failure to understand the ACHOA community needs and wants. This demographic or census survey is designed to develop the common interests within the community, interests in specific amenities and programming, changes to communication systems, capture demographics on the community that have never been accomplished in the past, facility improvement plans, and other topics that the ACHOA members would like to share with the Communications Committee and the ACHOA Board of Directors. The survey is not designed to influence any ACHOA members. It is solely designed to collect information that will assist this and future Boards when asked to add specific amenities and programming within the current budget process. It will also assist in giving the ACHOA Board and ACCC during its due diligence evaluation of any social or recreational benefits form the proposed joint venture proposition.

4. The Communications Committee an Advisory Committee of the ACHOA Board has been tasked to provide accurate, factual and nonbiased communications both pro and con to the ACHOA members. Most of the recent information provided to the ACHOA web site and to ArrowCreeek411 by the committee has been an effort to respond to ACHOA member questions. Factual verifiable information for ACHOA members to refer to and evaluate is the only goal of the Communications Committee. There are no nefarious hidden agendas for the Communications Committee.

We look forward to receiving your future questions and we thank you for your concerns.

ACHOA Board of Directors.

Webmaster Note: This was one of the ACHOA responses included in the January 24, 2015 ACHOA Associa website posting.

Posted in CNAC, Communication, Demographics, HOA, Homeowner Questions, Land Value Study, Property Value | Tagged , , , , , , , , , , | 4 Comments

One Homeowner’s Synopsis of AC Country Club Purchase

Posted on January 12, 2015 by arrowcreek411

Please allow me to join the ongoing website discussion about the proposed purchase of the AC Country Club (ACCC) from the Friends of ArrowCreek (FOA), by going into a Joint Venture (JV) with the Arnold Palmer Managing Group (APMG). I would like to put together some of the major facts as I know them from HOA meetings, briefings, and reading pertinent literature so far. I freely disclose that I have made use of and copied documentation available to me. Some of it has been said before, but I feel it cannot be said often enough. Here is my synopsis. It can also be found from The Concerned Neighbors of ArrowCreek page.

Posted in APG, Arnold Palmer Golf Management, ArrowCreek Community Club, Assessment, CNAC, Communication, Economic Impacts, FOA, Friends of ArrowCreek, Golf Industry, HOA, Law Suits, Mandatory Membership, Property Value, Residents Center | Tagged , , , , , , , , , , , , , , , , | Leave a comment

More Discussion to Consider

Posted on January 9, 2015 by arrowcreek411

The Somersett United blogsite has two more blogs and accompanying remarks worth a look for ArrowCreek residents and property owners:
HOAs and Country Clubs – Are They a Good Match?
HOAs and Country Clubs – Are They a Good Match? – Part 2
(Some of the information is a rehash of articles on ArrowCreek411.)

One of the responses on the first part (from Barry) mentions two articles (actually, the first one is a website of a golf consultant.) “in favor” of buying a golf course in today’s financial environment. I only found a few positive articles myself. Most of the literature overwhelmingly warns against doing so! The last article is very worth reading.

The first one is a guy who really wants employment as a consultant to help make a go at being successful.

Kahn Golf Business Consulting

Before an intelligent HOA meeting over a failing golf course can take place, you must have an analysis. How can any decision be reached without knowing all the facts. (Good Point!)

The second article really sounds a lot like the discussions currently going on in ArrowCreek and details more of the thinking behind some of the arguments. Well worth the while to read and think about for a few moments…

Cast Your Ballots: Trilogy residents face vote for golf course purchase (Rio Vista, CA)

Pay attention to the loan conditions as described as it sounds similar to what may be in the works for ArrowCreek. Article 7 of the ArrowCreek Articles of Incorporation states “Members of the corporation shall not be liable for the payment of any corporate debts of any nature whatsoever nor shall any property of the members be subject to the payment of corporate debts to any extent whatever, except to the extent valid and proper assessments for the corporate purposes provided herein create such liability or subject members’ real property to assessment liens.”

When we bought our lot: the golf course was not an item, the courses are not centerpieces nor that visible from the main drag, I totally don’t see them from my house and high desert is high desert is high desert. If you don’t like high desert, you don’t need to be in Reno. THIS Statement is to counter the statement made: “If you didn’t want a golf course, you can move.” When we bought our lot we had a CHOICE to join the country club. It was not MANDATORY. If it were, we probably would have never bought it in the first place. Even though we fell in love with our lot’s view of Reno and the Truckee River Valley. It is about as far from any golf course as it could be.

And – about the home value comment – maybe at first home values in D’Andrea may have been distressed, but now the “sold” average value percentage is quite remarkable. Twenty to 40% drops in value may be for homes right on a golf course in Florida, but the percentage can drop considerably every 100 ft. (“Does Proximity to a Golf Course Matter?” Kwame Owusu-Edusei & Molly Espey, Clemson University, 2003: http://ageconsearch.umn.edu/bitstream/18812/1/wp012203.pdf **) It all depends on which study or studies you want to consider, if you do not consider any and all of them. And, once memories fade and if the high desert is allowed to take over, it makes no difference at all. The neighborhood is still a nice place.

** From Page 4 of “Does Proximity to a Golf Course Matter?”:
Asabre and Huffman (1996) studied negative and positive impacts of golf courses to homes and found a negative impact on houses proximate to the gate, but positive for houses having frontage on golf courses in Burlington county, New Jersey. Do and Grudnitski (1995) focused on proximity to golf courses and found that the impact on property values did not extend beyond 100 feet. They concluded that houses abutting golf course were 7.6 percent more in value. Hirsh (1994) confirms that, “significant value can be derived from golf course frontage.” Firth (1990) found that golf course frontage may increase residential land value by over $10 per square foot. Other studies have used hedonic pricing models to estimate the effect of different open space types on a house’s sales value or assessed value.

Posted in Assessment, Communication, Golf Industry, Land Value Study, Mandatory Membership, Property Value, Somersett | Tagged , , , , , , , , , , , | Leave a comment

FAQ Now Ready for YOU!

Posted on January 3, 2015 by arrowcreek411

The first installment of frequently asked questions (FAQ) and the ArrowCreek HOA/Communications Committee responses to those questions is now available for your reading pleasure. It is a self contained document at this point. If you have any issues with working with the document, please do not hesitate to contact the webmaster via email at arrowcreek411@gmail.com for help.

ACHOA FAQ

Posted in APG, Arnold Palmer Golf Management, ArrowCreek Community Club, Communication, Communication Committee, FOA, Friends of ArrowCreek, HOA, Homeowner Questions, IMPORTANT!, Joint Venture, The Club at ArrowCreek | Tagged , , , , , , , , , , , , , , | 3 Comments

Somersett After Ratification: What’s Next? Communication?

Posted on December 30, 2014 by arrowcreek411

There is a new Somersett United blog post about their next steps after owner ratification was obtained for SOA purchase of the golf course: Next Steps for SOA purchase of golf course. Lots of work to accomplish in a short period of time! SOA Communication is lacking!

LESSON LEARNED: Communication is everything.

ArrowCreek HOA is organizing communication! Coming soon!

Posted in Communication, Somersett | Tagged , , , , , , , | Leave a comment

One HOA Solution with Arnold Palmer for Impending Permanent Closure of Golf Course

Posted on December 28, 2014 by arrowcreek411

Interesting…. I haven’t gotten feedback yet on how this community golf club is doing today. The HOA still exists. There is no mention of the golf club in the HOA on-line information: Balcones Village/Spicewood HOA. The Balcones Country Club still exists: balconescountryclub.com . It is an Arnold Palmer Management run club. By golly! It is listed indeed on the Arnold Palmer slides (the one showing locations in the United States) that were presented to ArrowCreek on Dec 9, 2014. Look at the same benefits that APG was touting at our ArrowCreek Annual Meeting in December: Palmer Advantage Platinum!

So, it appears that this community has been successful in collecting voluntary membership into the golfing/country club concept.
Back in 2011, the Balcones Village/Spicewood (BVS) HOA sent out this letter that has several points that will resonate with many ArrowCreek HOA readers – with the distinction of a very different solution: 2011 BVS HOA Appeal on behalf of BCC.

It was not forcing everyone to fund the country club. As a matter of fact, even the HOA membership is voluntary!!

“The BCC [Balcones Country Club] offers both full golf memberships and social memberships. The social memberships cost $100 per month. The full golf membership costs $265 per month. These are small costs to pay to preserve the beauty of our neighborhood and our property values. In fact, several of the HOA board members have recently joined the BCC to help solve this problem. We encourage you to consider joining the BCC too in the next few weeks.”

If it is so sure that so many ArrowCreek owners are in favor of retaining the ArrowCreek Golf Courses, let’s see them put their voluntary dollars into a membership to maintain it so that the rest of the non-golfing residents can maintain status quo and not subsidize the golfer/clubbers. … And leave our Residents Center to the HOA and residents!

Posted in APG, Arnold Palmer Golf Management, ArrowCreek Community Club, Assessment, Communication, Mandatory Membership | Tagged , , , , , , , , , , , , | 4 Comments