MORE FAILED GOVERNANCE! MORE FAILED LEADERSHIP! MORE BAD FAITH! THE EVIDENCE SUPPORTS THE CHARGE!
Here are excerpts from a certified letter sent as required to attempt to get SCA to comply with Nevada Law. It was rejected in bad faith with a letter from Community Manager Doris Logar that stated “ The Board Report does not contain the views or opinions of a Board member concerning an issue of official interest.” The issue of official interest is the 2024 assessment that is going to be voted on in November at Ratification meeting by homeowners as the board passed a 2024 Budget that included the assessment portion which I believe the actual assessment chosen to be bad policy for SCA. I had an opposing opinion. You can read the September Spirit Board Corner as it ties in Finance Committee article as part of its article and opinion of co author Greg Swenson, Treasurer. Their bad faith couldn’t be clearer. The presented opposing view is below. Time to change personnel. Your 2024 BOD votes matter as you have the ultimate power. SCA homeowners deserve better governance and management. Help create change.
For some this is too much detail. For some it is just the summary of the evidence. But I provide you with an overview plus the opinion piece I asked to be printed in Spirit and was unlawfully rejected. I did file with Department of Real Estate( NRED )but don’t have high hopes. The good news in the long term may be that the Governor’s office is looking into evaluating changes at NRED. But for SCA homeowners Elections Matter as it is our only hope to restore integrity and the rule of law and equal protection for all of us.
September 22, 2023
Ms. Doris Logar, Community Manager
Board of Directors VIA CERTIFIED MAIL
Dear Management and Board of Directors:
- The September Spirit Magazine, an official publication contains the views and opinions of an officer and agents concerning an issue of official interest written by Greg Swenson, Mike Quinn and Andy Muha regarding Main Reserves for 2024. I have an opposing view and have enclosed the response to be published in the November Spirit with equal space. This will allow time for readers to determine their vote for the Budget Ratification meeting in November. NRS 116.31035 Publications containing mention of ballot question:
2. If an official publication contains the views or opinions of the association, the executive board, a community manager or an officer, employee or agent of an association concerning an issue of official interest, the official publication must, upon request and under the same terms and conditions, provide equal space to opposing views and opinions of a unit’s owner of the common-interest community.
5. As used in this section:
(a) “Issue of official interest” means:
(1) Any issue on which the executive board or the units’ owners will be voting, including, without limitation, elections; and
(2) The enactment or adoption of rules or regulations that will affect the common-interest community.
(b) “Official publication” means:
(1) An official website;
(2) An official newsletter or other similar publication that is circulated to each unit’s owner; or
(3) An official bulletin board that is available to each unit’s owner.
(Added to NRS by 2011, 2414)
(Added to NRS by 1991, 541)
Time is of the essence.
Sincerely
AND HERE IS THE OPPOSING VIEW I PRESENTEDTO BE PUBLISHED IN THE NOVEMBER SPIRIT. The deadline for this copy was submitted within the proper time frame.
In the September 2023 Spirit Magazine Co Authors Greg Swenson, BOD Treasurer, and Mike Quinn, Finance Committee member, partnered with Andy Muha, Chair of the Finance Committee to describe and define what is a reserve study and to support the 5 Year Reserve Study( 2024-2028).
Here is an opposing opinion as to what was asserted. I support funding the Main Reserves at 100%.
Mr. Muha asserts that “ To be at 100% , we would need to contribute and additional $5.9M to reserves in 2024, or $829 per residence.” He continues, “ So what is the “ right” percentage, is it 68%, 80 % or 100%?” He states “the answer- ‘it depends.”
First increasing the Main Reserves would be done over about a 5 year period through a combination of tight control of spending and gradual assessment growth to the Main Reserves. Doing it all in 2024 was just a “straw man” tactic. The fact is that over a number of years the board has drained the reserves from a previous 90% standard to where if this 2024 budget is ratified the reserves at the end of 2024 will be 68.4 %.
Two previous board Treasurers and members of previous Finance committees, Forrest Quinn and Jim Mayfield both have sounded the alarm against the current board’s mishandling of the Main Reserves. Jim Mayfield has said , “The Main Reserves are a mess and ought to be brought back to the 90% standard that was customary when I served.” He also mentioned that the current method used by the board’s Reserve Specialist is the least preferred and reliable method for funding and has been widely rejected by HOAs across the country.
All Reserve Specialists agree that funding the reserves 100% provides the best protection for homeowners from the unexpected and insulates them the best from possible special assessments. Mr. Muha’s answer remember was , “ It depends.” And that we agree on. However he asserts that “ the reserve balance over the next five years is more than adequate to maintain SCA’s assets in top- rate condition.” What happened to, “ It depends?” His conclusion is flawed by his own words.
Steve Anderson , HOA President, on Nextdoor earlier when defending the board’s pending actions for the Reserve Study and Assessment Component for the 2024 Budget said.” The key point is do we have sufficient cash flow to meet our planned and unexpected needs.”
RY on Nextdoor responded by saying,” As far as your argument that you are funding for the unexpected is pure contradiction because you cannot measure the unexpected.” “ The disaster with the Villas on your watch documents that. Their reserves were underfunded and the unexpected happened.”
Exactly! Mr. Anderson’s position is clearly refuted. In addition, what if Hurricane Hillary had hit us hard or an earthquake causes significant damage to cause insurance problems or whatever as that would be the unexpected and the best protection for homeowners is 100% funding of the reserves. The current board and current Finance Committee minimize or ignore the possible unexpected.
And because “it depends “,I urge all homeowners to show up at the November Budget ratification meeting and vote to reject the 2024 Budget.
NOTE: It would take a 90% rejection vote for budget not to be ratified. The point is the board’s and managements failure to act in good faith and abide by NRS116.31035 so that homeowners could evaluate an opposing view. Until next time….Robert