The Big Canoe POA Board failed to do their fiduciary responsibility by building a $10,000,000+ restaurant after the property owners “voted” approval for a $4,000,000 restaurant.
If the POA Board had stayed within the property owners’ “approved” funding, the Capital Reserve Funding (Initiation) Fee would not be needed.
The Sconti Rebuild over-runs have placed the community in a precarious financial position. If the Board really needs the Capital Reserve Fee money to cover their current liabilities, they should say so and ask the community for a special assessment to cover the funding shortfalls. The POA Board’s very own Financial Audit Committee Chairman resigned last year due to the Board’s less than truthful statements to the Property Owners.
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Other reasons for voting NO:
1. For preparing a “propagandized” program to sell the property owners on the importance and need for the Capital Reserve Fee (even if needed). For giving the property owners misleading Capital Reserve Fee justification information, such as using communities in LTFC justification white papers, for comparisons, that was not similar to Big Canoe. There were other white papers dishonesties. Isn’t it true, that the POA Board’s first two LTFC Chairmen resigned due to ethics concerns?
2. For not telling the property owners, that due to the collection “method” selected, the Time Shares property owners would NOT be required to pay the Capital Reserve Fee; and that they would still be allowed to vote in the election. Was this done to get their YES block-of-votes?
3. For not telling the property owners that, if approved, the Capital Reserve Fee percentage rate will be adjustable, down or up, without the property owners’ re-approval. Once the Capital Reserve Fee is approved, the POAB can “increase” the CRF percentage rate without a re-vote of the property owners.
4. For initially trying to sell the notion that the buyer would be paying the Capital Reserve Fee upon the sale of a property.
5. For initially denying that the current Amenity Fund existed.
6. For not telling the property owners that they must vote (return their ballot – “properly executed”) to overcome the block-of-votes that they have acquired. If a very large majority of the property owners don’t vote, the block-of-votes will decide the Capital Reserve Fee election (See Item 2 above).
7. For considering bringing election vote counting in-house, an independent audit firm will no longer count election ballots results.
8. For refusal to have KPMG (or some other nationally know independent audit firm) to do a deep forensic audit of the Sconti Complex costs, as well as an audit of Big Canoe’s other financial records? And after doing these audits, to assist in installing a very firm set of financial controls, checks and balances?
9. For representing the corporation rather than the property owners. The current POA Board Directors answer to the corporate charter, not to the property owners.
10. For failure to provide the property owners requested copies of any and all agreements between the POA Board and the Developer.
11. For failure to have “open” work sessions, and intentionally not recording the minutes of these closed work sessions.
12. For initially allowing the POA Board President to sign POA checks for $100,000s plus without the co-signature of another POA Director.
13. For approving past changes to the CC&Rs, without an election and vote-of-approval by the property owners. The Board will be using the upcoming By-laws election to secure approval of the new Capital Reserve Fee: be aware that they may secure approval without an election, and approve the By-law changes in executive session.
14. For refusal to do “comprehensive” background checks on all “current” POA Board Directors, and executive employees. And failure to require “automatic” comprehensive background checks on all future POA Board Directors, and executive employees.
15. For doing a separate “closed” sample Capital Reserve Fund Feedback Survey and asking one or more samplers to falsify their forms?
I’m voting NO.
1 user commented in " Why I’m voting NO on the new Capital Reserve Fee "
Follow-up comment rss or Leave a TrackbackI have say this is an amazing list. If all these matters are true, I would think we should ask for a new election. Assuming all this matters are factual and true, I find this list to be completely objectionable as a property owner. I sure hope there is an answer to each one. I would suggest you post this same blog in question form to the POA Forum requesting answers. Or even better, maybe we should submit as formal “Public” letter to the board. Then place it in Smoke Signals with the Board’s written response. What do you think? Does anyone else have some issues. These issues redirected as questions would be an interesting document for the board to address.