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VOCA Receives Attorney Letter of Bylaw and Statute Violations

Sedona Arizona's Village of Oak Creek Association represents over 2300 homeowners

Sedona Arizona’s Village of Oak Creek Association represents over 2300 homeowners

Sedona AZ (June 4, 2015) – The following is a letter to the SedonaEye.com editor:

Did you know your HOA (YOU) was sent a letter from an attorney?

No? Why, because your Board of Directors didn’t tell you or share the letter with you? The attorney was provided over 100 pages of evidence. The 3-page letter outlined bylaws and state statute violations by your board of directors.

The VOCA board of directors continues to deny any wrongdoing.

Do you care?

No? Why? Because your pocketbook is not affected?

$420,000+ will be collected this year from lot owners in VOCA, according to the VOCA budget. What are you getting for your $420,000? Is your only benefit the hope that your neighbor cannot paint their home an offensive color? What about the downside?

This board of directors has contracted with a management company from Prescott at a cost of $20,000+ PER MONTH. Sure, a few employees work in VOCA, but where to they live and shop? What small percentage of our $20,000+ PER MONTH is staying in the community?

sedona jobs accounting tax dollar bill book calculatorThis board has approved spending over that past 3 months including $4000+ for THREE pot holes to be repaired; $8,000+ for interior painting; $??? for new carpet; $4,000 approved to install ONE french drain; $25,000 approved for stucco and paint repairs; and much more.

The management company is recommending $18,000 be spent to retrofit light fixtures and install LED light bulbs. $18,000! What is next?

The management company is recommending hiring a professional reserve study company. Will the reserve study result in cutting expenses or recommendations for increasing funding? When was the last time you heard any conversation about cutting expenses?

What about all the spending? Are bids from local companies? Are the bids from board buddies? Is anyone getting kickbacks? Is $25,000 for stucco and paint too much?

For years and years, VOCA was managed by a volunteer board. During the early years, those volunteers managed new construction on most of the 2300 lots. At some point, the volunteers hired accounting help. The recently hired management company promoted their services as a way to allow the volunteer board members to work less. If the board members didn’t want to do the work, they shouldn’t have run for election. How hard is it to send out letters telling lot owners to cut their weeds? How hard is it to review re-painting requests? How hard is it to manage the few new construction requests? Probably less work than the many other volunteer boards managed.

question markYou don’t care how much money you spend to ensure you don’t live next to a house painted an offensive color, right?

You don’t care if you are paying too much, right?

You don’t care about the local economy, right?

You don’t care if you are forced to vote to raise assessments, right?

You don’t care about your neighbors, right?

Sit back and do nothing and look the other way. That is what the board and the management company want you to do.

It makes their lives so much easier.

Barbara Gordon
VOCA lot owner
Sedona AZ

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32 Comments

  1. Bill Alpert says:

    Clearly, this board of directors has adopted a very focussed agenda. And that agenda DOES NOT reflect the best interests of a majority of VOCA homeowners.

    As property owners in VOC, it is our time to PAY ATTENTION. Attending meetings. Write letters. Be active in your association. Make your voice heard, and VOTE!

  2. Helene James says:

    VOCA Board continues to make decisions on their own without any input from the thousands of members …They represent us but they don’t Work for our benefit. they continue to spend our HOA dollars (dues) recklessly and needlessly. We have never in the past had a property management company (HOAMCO) manage our affairs and now we are paying over a hundred thousand a year. .. plus they collect a portion of our Fines For violations and late fees. Note that several of these neighborhoods have smaller HOA’s within VOCA with there own CC and R’s and each has their own rules they follow…. Do we really even need VOCA overseeing us? would love to campaign and withdraw my HOA from VOCA’S grasp.

  3. Ken Dauth says:

    How can any board expect to enforce or expect members to respect by laws that the board does not follow?

    We, all VOCA members, need to respond and be heard.

  4. Barb says:

    Did you know VOCA was formed when the home and golf course developer went bankrupt around 40 years ago? The folks who built houses around the golf course banded together to buy the golf course and form a homeowners league to protect their investments. Helena asked a good question, “Do we really even need VOCA overseeing us?” There are other HOAs where homeowners live right next to VOCA and they get along just fine without a management company or high assessments. If VOCA can’t elect a board who can follow their own rules, maybe it is time to look at disbanding. At the very least, we need to recall this board.

  5. I was one of the few at the last VOCA board meeting and what Barb Gordon wrote is not quite factual: 1) HOAMCO did NOT recommend switching to LED lights, that proposal was to be studied further and first contact was to Bill Czekai. 2) Bids for the repairs mentioned were received from local vendors. 3) Last time the Board mentioned cutting expenses was when they recommended contracting with HOAMCO which will save VOCA $60,000 each year, and, perhaps, switching to LED bulbs will save money, too. 4) Here’s a link to “why a Reserve Study?” (found easily by doing a GOOGLE search.
    I am just one of the MAJORITY who like the changes this Board has made and Gordon’s snide comments re “board buddies” and “kickbacks” is beneath every VOCA member and beyond contemptible.

  6. Mary, VOC says:

    Board has run amok, and with the info provided, I can see it clearly when unfiltered through gossip. How could you on the Board be cavalier with my money, ignorant of your fiduciary obligations, inept and power hungry on my and my neighbors incomes? I am appalled. Disgusted. I golf and I’m mad.

  7. Barb says:

    To Anonymous “Lot Owner, too”
    The VOCA budget shows $33,000 BEFORE tax HOA profit for 2105. There is no indication hiring the management company is saving $60,000 nor the $100,000 nor the $82,000 that the board promoted. The attorney reviewed over 100 pages of evidence. Once conclusion was:
    “… However, upon information and belief, the VOCA Board has on occasion released incomplete, confusing, or even inaccurate information regarding the finances of the Association. Such incomplete, confusing, or inaccurate information is in violation of the letter and spirit of VOCA bylaws and state statute. A complete, accurate, and transparent accounting of all VOCA departments, operations units, or other administrative or other administrative or financial subdivisions, and the Association as a whole, must be made available to members which allows members to clearly understand the financial health of the Association and all entities which comprise the Association.”

  8. James says:

    Lot Owner, too. Just how is HOAMCO going to save $60,000 each year. I am just asking you to prove it. Also, it is probably not a good idea to believe everything on Google, or any internet posting.

  9. Barb, how are you privy to contents of a letter sent by an attorney to VOCA? Oh, wait. You previously stated that “The attorney was provided over 100 pages of evidence.” Guess I answered my question. Didn’t VOCA receive a ” clean” (whatever term CPAs use) audit report? How much more “complete, accurate, and transparent accounting of all VOCA departments, ……” do you want? If an auditor says they are “clean” how can you question the finances? And aren’t the CPA’s report and monthly financial info published for all to see? I truly don’t understand your complaints.

  10. Barb says:

    Discredit. Distract. Deceive.

    Based on proof and evidence, another statement from the attorney letter:

    “Upon information and belief, the Association and its Board have sought to stifle constructive input from community members by not only limiting access to Board meetings, but also using aggressive tactics when interacting with dissenting members and Board members. Input by Association members, especially input by a minority of community members, must be heard and responded to respectfully in order for the Association to function effectively. Questioning actions of the Board in order to obtain better information about the Association does not demonstrate a lack of understanding about, or caring for, the community; rather, it demonstrates the exact opposite. Stifling such questioning by derogatory mass communication to the corporation’s membership, or by disrespectful communication directed at individual board members, is not in the best interests of the Association, nor is it acting fairly or with prudence.”

  11. If an auditor says they are “clean” how can you question the finances? And aren’t the CPA’s report and monthly financial info published for all to see?

    The auditor is basing a decision on the numbers he is given, nothing more and no we have not been able to receive financials in a timely manor all year.
    The treasurer speaks out of both sides of his mouth.
    “I’m concerned.”
    “I’m not concerned.”
    Lets move this line item over to here.
    Lets call this something else and use it for that.
    That ,my neighbor, is how our numbers are being monitored.
    Now you can always ask to see the numbers but you will have to sign a multipage document stating you will never discuss or show it to another member or face lawsuits.
    Oh thats right, the incompetents with massive egos removed that upon advice that they were breaking even more bylaws.
    Did you know they were getting free legal advice for a lawyer board member that doesn’t know squat about HOA’s?Then he would vote on his own advice.
    Amazing.

  12. Irv says:

    Bernie Maddoff was given a “clean” bill of financial health by the government. Board members, have you joined the Maddoff accounting principles?

  13. Ken says:

    The board, specifically the board president, upon recognizing dissent, had the gall to say that regardless the outcome of a vote, the board is under no obligation to follow the wishes of the majority of members (home owners). That is arrogance run amok. That alone is ground for a recall when they openly say they can do what they want regardless of the majority. I’ve said this when HOAMCO was forced down our throats: it may be time to disband VOCA and start a new HOA…

  14. Chuck says:

    Did they? Then I say they lost my vote of confidence and time for accountability.

    No elected board has the right to disregard any member’s voice, they need to listen and consider everyone. Majority silence does not mean majority is right, a lone voice of dissent might be the nugget of truth needed to change the course of disaster.

    Most everyone is apathetic about government until it runs amok and needs to be brought to its knees. We in America expect the best of our elected boards to act properly & rightly on our behalf – you aren’t there for your interests, you are there because we sent you with our interests.

    Do right or get off the VOCA board. Find your lost integrity and honor. Stop dishonoring the friends and neighbors who voted for you. You’re causing consternation and shame with your arrogant and outlandish behaviors. Knock it off.

  15. This board is totally out of control and needs to be replaced. A while back, we had a successful recall of ineffective SFD board members. They were replaced with people who are getting the job done. There is no reason what-so-ever that we can’t do that with the current VOCA Board. The time is NOW before they do any MORE serious damage!

  16. Barb says:

    To repeat, because it is important, over 100 pages of evidence was presented to the attorney hired by homeowners to prove complaints that the board violated bylaws and state statutes and has often NOT acted in ways that are in the best interest of the members.

    Neither the VOCA board nor their attorney asked to see the evidence. Yet the VOCA board continues to deny any wrongdoing and has discredited the attorney hired by the homeowners. Below is the response VOCA sent to the attorney hired by the members.

    April 24, 2015 via hired VOCA attorney: “This firm represents the Village of Oak Creek Association (the “Association”). The Association is in receipt of your April 15, 2015 letter. As a threshold matter, the Association, as a policy, does not allow its resources to be dominated, usurped or controlled by anonymous entities or members. In addition, after due consideration, the Association disagrees with the factual assertions and legal conclusions in your letter.”

    The homeowners who hired the attorney are not anonymous. They are called Member Alliance and have an email address and a mailing address. The attorney hired by the homeowners was identified and could have arranged a discussion with all parties. How can they disagree with an attorney’s conclusions without even seeing the evidence? I agree with Ken, arrogance run amok.

  17. Barb says:

    Since the VOCA board has indicated no regret or admission of wrongdoing and no interest in cooperating, a recall is the next best course of action, in the opinion of many.

    Here is some information regarding a board recall.

    The first step is to work with an attorney to create a petition. The fundraising for this first step has been completed and homeowners are working to coordinate with the attorney.

    The second step is to get about 250 signatures (10% of the eligible voters) on the petition.

    The third step is to work with the attorney to present the petition and create a valid and compliant ballot. This will require cooperation from the VOCA board. In the opinion of many, the ballot from the last homeowner petition was grossly biased by the board. Therefore, in the opinion of many, getting cooperation from the board will require the assistance of the attorney. This will require additional fundraising.

    The last step is a vote. To recall the board members, a vote requires a quorum participation (20% of eligible voters) and a vote of the majority of the quorum. In the opinion of many, a fair vote will require funding for factual information to be distributed to the members to offset the board propaganda. This will require additional fundraising and work from many members.

  18. The attorney for Member Alliance should be able to give us some suggestions on how we can recall these arrogant members of the VOCA Board. The sooner, the better!

  19. If you want some indoor painting work to the tune of $8000,you may want to become friends with board members XXX and others. His friend did that job. Were bids placed? Maybe in the inner circle.

    Stay tuned. They have some more boondoggles coming up.

    25000 to paint parapets. Let see whose friend gets that job. These people seem determined to run VOCA into financial ruin.

    Did you ever stop to think that someone might want to take that golf course from the homeowners? Its very pretty and land is worth a fortune. Get involved before its too late.

  20. I remember the days when the golf course crew would just do the work around VOCA. Why is the board considering $7,000+ to hire out the swale cleanout? Can’t the golf course guys do that? Same for the $4,000 drain. I would like to see the painting and stucco work bid out to some groups like the college kids who paint to make money for tuition.

  21. Thank you Barb and others for being willing to work so hard to recall this crooked board. Please post information about how people can get involved. I will canvas my neighborhood if that helps, I know most of them disapprove of the things the board is doing.

    I have had a concern since moving to VOCA 4 years ago regarding a non-profit running a for profit golf course. I have been working in the non-profit world for a number of years and this appears to be a direct conflict of interest. Why is the non-profit paying to have anything done on the golf course? I say, sell the course and have it run by a reputable company and take the management away from a volunteer board. We would never have to pay dues again. I imagine there are many companies that own golf courses that would LOVE to purchase a course in Sedona.

    Let’s all get involved and remove this board or the entire association.

  22. Barb says:

    To get involved, email Member Alliance. That is a diverse and growing group of concerned homeowners who have been spending time and money getting the truth out in the community such as the attorney letter. (That same attorney letter that the VOCA board dismissed and then denied any wrongdoing.) It is an uphill task. Help circulating the recall petition would be very much appreciated.

    MemberAlliance@use.startmail.com

    Donations are being accepted to fund legal advice. Make checks payable to Member Alliance. Mail to PO Box 20453, Sedona AZ 86341

  23. Tom says:

    thanks for info

  24. I own a rental property in VOC and live in Sedona. I get nothing, of which I’m aware, for my VOC dues and in addition have to pay HOA dues for which I get very little. Oh yes and than there is a property management fee. Because of all this low return expense the Village is not a very good place for investment and I would not recommend buying rental property in this location. Not only is it a no win for the homeowners, but a bad business investment. Not a good climate for the community. Yes, please sell the golf course.

  25. Barb says:

    We are close to the appointment with the attorney. Hoping to get the recall petitions circulated soon. Thanks for your patience. We want to be certain we have a correct petition.

  26. They have a policy book that works around the bylaws so they can act without association knowledge or APPROVAL.

  27. Barb says:

    Eleanor: Yes, the climate in any community is important to the value of the property in the community as well as the well being of the property owners. That is why we must not stand by and allow the current VOCA board to continue the deceitful and bullying tactics they employ. Please sign the recall petition as soon as we have it prepared by the attorney.

  28. Did you get your VOCA annual assessment bill with the info from the board? Don’t believe them when they say Hoamco is saving money. They didn’t tell you that we were paying Tony Rizzo severance during the first part of 2014. Comparing apples to oranges is a trick they like to use. Also, the budget does NOT show $60,000 in savings. The HOA reserve balance was $557,336 at the end of August 2014 but only $543,554 at the end of April 2015. What are we getting for our $420,000? Is that what it costs to avoid talking to your neighbors and sorting out your own neighborhood?

  29. To Not fooling me…
    The county has ordinances for noise, fence and building heights, builds and maintains our roads, provides law enforcement, etc. They do not mandate what color to paint your house, though. So we need VOCA to be sure we don’t end up living next to a purple house, right?

    In addition to telling people what color to paint their house, for our $420,000 we get to subsidize a golf course and golf restaurant. There is an estimate that less than 200 VOCA members are golf members. WE, the 2300+ VOCA members, must subsidize their entertainment as well as provide this “amenity” to the entire tourist area, right?

    The VOCA budget clearly proves the homeowners subsidize the restaurant. There would likely be no restaurant without the golf course. The golf course pays an allocation to the HOA (hard to tell how much from the confusing budget but it seems to be around $50,000). In return for the small allocation, the golf course gets the restaurant, the use of the community building (and all the expenses for the building), and the use of the land for the golf course, all owned by the HOA. Surely you are willing to pay $420,000 for that!

    The claim that the golf course is “financially independent” means what? How can the golf course not be costing the HOA? If the HOA and the funding from the HOA went away, could the golf course afford the restaurant and the building and the land? VOCA must continue to support the golf course, right?

    Imagine what your own subdivision could do with the money you are paying VOCA. Some subdivisions are large enough that they generate over $40,000 per year for VOCA. They could hire their own full time manager to ensure their property values and deal with noisy neighbors and make sure no one paints their house purple.

    Is VOCA and the controversial board really protecting YOUR investment or are they just fooling you?

  30. VOCA board recall committee forming says:

    An update to the denial from the VOCA board regarding the attorney letter: Some Member Alliance homeowners drove to Phoenix last week to talk with an attorney. The cost for the attorney to assist in the VOCA board recall is a very reasonable $1750. There will be other costs involved to educate VOCA homeowners about the importance of recalling the current board and replacing the board members with more considerate and compliant folks. A committee is being organized. To join, please contact MemberAlliance@use.startmail.com

  31. What’s the status of all this please?

  32. The status is we have been waiting since June to hear from you Elizabeth….
    Where have you been and what have you done for us lately?
    “Voca neighbors pleads fall of deaf ears” will be the title of the next article.
    Stay tuned.

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