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VOCA Budget Nearly Final But Do YOU Approve

Sedona AZ (November 4, 2014)The following is a letter to the SedonaEye.com editor written by Barb Gordon, former VOCA board member:

Village of Oak Creek  Photo by Bill Kusner

Village of Oak Creek Photo by Bill Kusner

VOCA Budget Nearly Final But Do YOU Approve?

VOCA (Village of Oakcreek Homeowners Association) will hold a meeting on November 12, 2014 at 3:00 p.m. in the VOCA building on Bell Rock Boulevard. The purpose of the meeting is “VOCA Budget Hearing.”

At 1:30 p.m. that same day, the “Policy Committee” will meet. Did you know there is a policy committee deciding rules and regulations and advising about by laws and master declaration changes?

As of November 3rd, to see the agenda for the policy committee meeting or the budget meeting, you must go in person to the VOCA building and read the bulletin board. Will you get an email informing you? Maybe. Will you read it? Maybe. What if you don’t have email? How will you be informed?

You will NOT read about the meeting times, dates or agendas in “The Villager.” The most recent edition of “The Villager” has no mention of these two important meetings on November 12th nor the recent finance committee meetings where quorums of the board and the finance committee recommended the 2015 budget. Meeting agendas and minutes or even simple reports of meetings have not been published in “The Villager.” VOCA members and the community must find other means to stay informed.

Former VOCA board member Barbara Gordon resigned in protest over perceived clandestine board activities

VOCA board member Barbara Gordon resigned abruptly last month in protest over perceived clandestine board activities that compromised her ethical standards.

“The Villager” is a print source for the community and VOCA members. The newspaper is subsidized by VOCA. Rather than inform about what the management of VOCA is doing, there continues to be long articles that, in my opinion, insult the community. The articles, in my opinion, defend actions that have been made unlawfully and unethically. “The Villager” should be used to inform about meeting dates, agendas and board proposals so that members can participate in decision-making, participation that is supposed to be assured by the laws governing homeowner associations in Arizona.

I resigned from the VOCA board because I would not compromise my ethical standards. I do not approve of what I consider unethical actions by the board. I do not agree with board actions that are, in my opinion, personal agendas. I do not approve of violating or circumventing the bylaws and state laws, including but not limited to, closed meetings that are required to be open to members and decisions made via email to avoid meeting in the open. These actions put our association at legal risk.

Many people believe VOCA has an impact that reaches beyond the 25 subdivisions. This includes the golf course that has economic impact. This includes impact on property values.

A bit of background:

For financial statements, VOCA is divided into four basic categories. The park is one category. The restaurant is another category. The restaurant management is contracted to outside managers. Financially, it has been about break even for 2014 if the depreciation is not included. There is still over $70,000 in depreciation as a result of the over half-a-million dollar remodel. The golf business (including the pro shop and the actual golf course) is another category. Golf membership dues and income from public play primarily fund the golf business. The fourth category is the homeowners business. The homeowners business is primarily funded by member annual assessments. The homeowners business includes enforcing the CC&Rs, collecting fines and other fees, and collecting the annual assessments.

VOCA Redstone Grill underwent 2014 remodel

VOCA Redstone Patio Bar & Grill underwent over $.5 mil recent remodel

The management of all four categories was under the overall management of a VOCA-paid general manager (with board oversight) for many years. The actual performance of the job is not relevant to the expense when looking at the budget. The 2014 budget includes the expense for a general manager because the budget was not changed after the most recent general manager resigned at the end of December 2013. The general manager was responsible for coordinating the four categories of VOCA business. He was highly paid to do that job.

Under the 2015 budget utilizing Hoamco, a homeowners management company, the Hoamco staff will not perform any management or oversight of the restaurant or the golf business. At least that has been the message from the board.

The biggest savings when comparing Hoamco and the 2014 VOCA budget is the loss of an overall general manager.

I urge you to attend the meetings on November 12. Ask questions. Demand accurate answers.

For example, ask:

At a meeting on October 9, in my opinion, the membership was led to believe the Hoamco deal would save $82,000 over the current budget structure. In a selling pitch for Hoamco, Joe Jansen, board member, said, “Wouldn’t you like to see $82,000 go into the reserve fund?” There have been other statements indicating the savings as “over $100,000” and “$80,000” and “$65,000.” What is accurate? The finance committee presented the budget to the board on October 29. It was indicated the actual 2015 savings to the homeowners business of the association by contracting with Hoamco is less than $3,900.

Where is the line item in the 2015 budget showing $82,000 going to the reserve fund?

Sedona Arizona golf course

Village of Oak Creek Sedona Arizona golf course

The membership has been told over and over that Hoamco will not interact with the golf business other than to service accounting for the golf business. What is the 2015 expense to the golf business for Hoamco to perform the golf business accounting? Why were no other bids sought to determine if this is the best option for the golf business?

What about the capital expenses in the 2015 budget that total over $500,000? Isn’t the membership required to approve that?

Who is going to perform the tasks that were budgeted to the general manager under the past structure? Who will perform the task of overall management? The main reason the Hoamco proposal has a lower cost over the 2014 budget is a result of eliminating the overall general manager.

sedona jobs accountingAt the policy committee meeting ask:

What current rules will be deleted or amended? Why? What rules are they going to impose that will affect you? Will you consider the rules reasonable? The recent revision to the restrictions about tape recording meetings includes the demand that you must hand over a copy or YOUR tape. Do you think that is reasonable?

Homeowner association boards have tremendous power. Members need to be involved and care about what is going on and why. Laws need to be complied with or the association is at risk for legal consequences. “The Villager” could be useful if the reports about VOCA were factual, accurate and meaningful. Don’t wait until your property values are affected or you are forced to vote in higher assessments to get involved and get informed.

Barb Gordon, Sedona AZ
former board member Village of Oak Creek Association

For the best Arizona news and views, read www.SedonaEye.com daily!

For the best Arizona news and views, read www.SedonaEye.com daily!

13 Comments

  1. NO, I do NOT approve.

    Breaking AZ State Statutes? No problem for VOCA Board.

    Are you taking advantage of the trusting residents? Karma is going to whip around big time(Three fold what you do to someone), brace yourselves. Universal laws are non negotiable. The board might want to look them up.

    Here is one.

    Law of Cause and Effect

    With every thought of intention, action and emotion that is transmitted from you, a person sets into motion unseen chain of effects which vibrate from the mental plane thought the entire cellular structure of body out into the environment and finally into the Cosmos. Eventually the vibratory energy returns to the original source upon the swing of the pendulum.

    Sedona Eye, please place this in your headline so neighbors can be informed.

    My parents own there and I am moving them out.

  2. Here we go again. A good board member is elected by the residents. The existing board runs ramshackle over open meeting laws and ethics. Board members faces is alone because of the fluff being written in The Villager telling people all is well.
    The board member resigns and the “rogue” group runs with six.
    They did this last year too.
    Do the bad really outnumber the good here?
    A member meeting was called and all rules for a member meeting were disregarded.
    Go to the policy and budget meeting so it won’t be such a shocker when your association dues go up in a year or two. The present board openly resents the association members that don’t play golf.
    They are OVER spending on the golf side because you are not paying attention.

  3. Doug, VOC says:

    No, for that matter.

  4. Dave says:

    Let’s see what is done in our names then decide? This board isn’t doing a decent transparent job but they can still listen and do the right thing.

  5. EGO driven says:

    Don’t hold your breath. One of the first things they did was cover the financial promises that the previous board made with regard to waiving a year of rent on the restaurant. A continuation of ego driven actions having nothing to do with common sense or looking at the big picture. Sort of like a one lane road of roundabouts for two million tourist to drive. No big picture, just ego Dave.

  6. Carol Rizzi says:

    I believe the current Board is acting irresponsibly. They asked us, the residents to vote for them to do the jobs that they are now deciding to outsource. If they couldn’t do the job as a volunteer they should resign after getting someone to replace them. They have been functioning in the shadows and not keeping the membership properly informed. All the comments about “due diligence” on their part in investigating this management company and keeping the residents informed is nonsense; it just sounds good and may make an impact on the uniformed. Since the Board is going ahead with the decision to hire Hoamco – make them all accountable and make them transparent to us all. Do not forego your rights to timely information, meeting notices and complete answers to our questions.

  7. Barb says:

    I agree, Carol. The board has acted irresponsibly. The claimed savings under Hoamco is just not accurate. The current plan is to charge the golf business $66,808 to have Hoamco do the bookkeeping for the golf department. AND they didn’t get any competitive bids. I started asking for the cost breakdown in June. Never got it. When I asked about it at the last finance meeting, I was shocked by the outrageous cost. What are they thinking?

    They got rid of the general manager and then used their woes as volunteers to justify Homaco.

    There is not going to be an overall general manager to coordinate the four departments. The board is in charge. I don’t know where we will find 3 fair and reasonable people to run for the board in April. But that is about the only hope short of a recall or lawsuit.

    Seen any announcement about the meetings on November 12 yet? You have to almost be a detective to figure out when the meetings are and what the heck is going on.

    In the meantime, they waste space in The Villager with insulting articles.

    The medians are overrun with weeds and lots are turning into prairies. But, gee, we are all to blame because we don’t like change.

  8. Joe, VOC says:

    Do the bad really outnumber the good here?

    Short answer? YES. Welcome to the Big Park and VOC and Sedona politicians.

    Your reputation for honesty and transparency and integrity stinks.

    Clean up your acts.

  9. Wake up! For Gods sake pay attention.

  10. Leah, VOC says:

    Barb, thank you for getting the ‘inside’ word out. I’ve taken time off of work to attend the past couple of meetings and I’ve been very disappointed with the attitude with which the board treats members. Unfortunately we have a very progressive board that treats us like we are stupid and the board are the smart ones that are going to help us – those poor ‘little’ people.

    The president made the comment (I wish I could remember which meeting), “the members elected us and they have to trust that we have their best interest in mind.” The unsaid message in that statement was basically “you should all stay home and trust us, and quit bothering us with your comments, we’re trying to take over the universe here.”

    It’s the same ridiculous statement that was sent with the “ballot” they sent about HOAMCO. (now I wish I had saved the letter), but basically the message was “The members made us send out a ballot, but we’ve already decided, so your vote doesn’t really count for anything, and we cut off out nose to spite our face and wasted over $3000 doing this mailing. (doesn’t that seem outrageous? The cost of mailing something to the homeowners?) I digress.

    I’m having a hard time finding the benefits of being part of the homeowners association in the first place. My street is loose rock (not really paved), my neighbors have overgrown yards, they have bright lights that stay on all night, dogs poop on my property; just a few of the things going on in VOCA. But I should remember that there is a park, I could go to some lame parties with the Geritol Jet Set, there is a newspaper full of insulting (thanks Barb) articles. Hmmmm, anything that is worth $180 a year.

    I know, I know, you are all going to tell me that if there is no golf course that my property value will go down; that’s crap, have you looked up lately? People don’t move here for the Oak Creek Country Club, they come here because it’s Sedona!

    How do we get rid of the HOA? The Board? The hidden personal agendas?

    I want to defect.

  11. Barb says:

    Leah, I am sorry you want to defect. I understand, though. I have heard it is extremely difficult to get rid of the HOA. Some subdivisions are trying to sort out how to withdraw from VOCA. I don’t know if they have been successful yet.

  12. Many are watching the budget very closely and Hoamco, as a business, will not be able to get away with the shenanigans that this HOA Board has.
    Hoamco can be held accountable by law.

    Remember this board is only here for a short time. Find some good people and run next year so the board can be replaced with upstanding residents, one at a time.

    There are many people that do not attend the meetings who are watching this board. Business men and women, CPA’s, lawyers, residents who care. They are also having secret meetings like the board, about the board. If the money is not there to cover the spending, if numbers are overinflated, if a bidding system is not used, this board will be liable.

    Keep going to meetings.

  13. Barb says:

    Yes, be watchful.

    At the budget meeting, the treasurer stated that the $417,000 for leasing 18 pieces of golf equipment is not going to be a capital expense. But it is listed in the documentation under capital purchase.

    The total expenses for 2015 are $869 less than the total expenses for 2014. The total expenses for the golf business for 2015 is $73, 079 more than 2014.

    There is no line item showing the stated $82,000 in savings going to the reserve fund. The golf business total expenses is $73,079 more than 2014. Get it?

    And remember, we are not getting an overall manager so we are paying for less service but only saving $869 overall. The Hoamco manager is not an overall manager. At least that is what we have been told. Hoamco is not going to have the same involvement in managing the golf business or restaurant as we had budgeted in the past. That is what we have been told. That is a concern.

    One board member stated we should not have to raise the annual assessment for several years. Let’s see if that holds true in light of the many other misleading statements.

    There is an item on the agenda for the regular board meeting on November 26 that may determine if VOCA will continue to mail The Villager to members. Since that publication has not been utilizes to inform members, we might as well cut that expense. It will be interesting to see what the information style under Hoamco will be. They claim to be “paperless” so members without computers will continue to be in the dark. The Hoamco brochure indicates newsletters and web sites as services they provide to their clients. Be watchful.

    It is too bad a member has to almost be a detective to learn what is happening with our own HOA. The three board members who were in attendance at the budget meeting didn’t even know if the Homaco contract has been signed yet. Members don’t know either. Wonder if and when we will find out.

    Yes, only 3 board members were at the budget meeting. One was on the phone and 2 were absent. Be watchful.

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