Covenants Rewrite Committee:
It is my understanding that the Covenant Rewrite Committee will soon meet with interested property owners to discuss the new revisions to the Covenants.
As it stands now, the Covenant Rewrite Committee will add an amendment to the covenants to allow the POA Board to spend up to $1,000,000 (using banks loans) for new “Capital Improvements” without having to get approval from the property owners.
As it stands now, there will be “no requirement” for the Board to use a competitive bidding process for the Capital Improvement expenditures (Do you remember the no-bid Sconti Rebuild?)
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Follow-up comment rss or Leave a TrackbackI have talked with members of both the Covenants Rewrite and Reserve Fund Committees.
It is my opinion that they have done a good job of taking care of our business but with one very big exception - for accountability/control of our money.
If there is not a “bidding process” included in the “new capital” projects spending amendment to the revised Covenants, and if there is not a “bidding process” included in the Repairs and Replacement Fund (no “new capital” projects spending will be allowed from this fund), we will be inviting cost over-runs as we had with the Sconti Rebuild.
I would recommend that any project greater that $100,000 must be part of the bidding process, and no less than 3 bids taken before awarding the contract. This bidding process must be made official by including it in the revised Covenants and in the Repairs and Replacement Fund documentation.
One member of the Covenants Rewrite Committee told me that there is already a bidding process outlined in the Board’s operating procedures; but I pointed out that it was not followed during the Sconti Rebuild. I told them that a bidding process must be included in the amendment to the revised Covenants. The same is true with the Repairs and Replacement Fund.
If we let them add this amendment to the revised Covenants, the POA Board will be able to fund multi-million dollar new capital projects like the Sconti Rebuild without our approval.
They will be able to sub-divide a multi-million dollar new capital project into a few smaller projects, each requiring funding of under $1,000,000. And they will be able to do so without our approval. Once this spending authority is added to the Covenants, it will never be removed.
Is the POA Board trying to legalize a financial power grab from the property owners?
The Covenants Rewrite Committee should change this new amendment in their/our revised Covenants, reduce the $1,000,000 spending authority to $200,000; or I will vote NO to the revised Covenants.
For the first time in Big Canoe history, an amendment is being added to our covenants giving the POA Board approval to spend the property owners’ money. Why is this being done? Blank check spending amendments don’t belong in our covenants. I will not vote for such changes to our covenants.
There is no need for this amendament in our covenants!!!!!!!!!!!!!!
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