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GnomeX (Washington)
Posts: 253
Posted:
We finally got a roof construction firm to start our Clubhouse roof repair. We paid $9,000 deposit this summer. Their initial contract bid was only for re-shingling but informed us there would be extra costs if any issues came up after they started. All Board members were informed of this risk in advance.

1st day on the job and we find out they will have to re-deck the entire clubhouse as it is skip-sheeted. But that isn't the problem.

The problem is now the Roof construction firm is basically on stand still and losing money daily as their crew is waiting on 2 Board members to return phone calls to make a decision. These 2 Board members are not answering emails or returning phone calls to either me or the management company. The roof construction firm has said we have 3 days per the contract to make a decision or they are canceling the contract and we are out the $9,000 deposit. We are on day 2.

At first I thought something might have happened to these Board members like an accident or sudden illness. But I noticed both Board members are making constant facebook posts since we have been trying to contact them. So I started sending them personal messages via Facebook. Still no reply and we are getting close to a breach of contract.

Word on the street is these 2 Board members got on the Board to sabotage the association. That they are part of the disband crowd. I try not to go on rumor and give people the benefit of the doubt but I am starting to think there may be some truth to this as there are a few other examples.

But for now, we are literally facing a loss of $9,000 for a breach of contract because they won't contact the management company to make a decision on the roof repair.

Any advice?
CarolR11 (Colorado)
Posts: 2,563
Posted:
Remind us. Are you a board of three? And are these the two who are getting off the Board soon? Is there a reason you cannot go knock on their doors? Or your PM can knock on their doors?

Was the contract reviewed by an attorney to protect your HOA? Is the change order (possible extra costs) actually written into the contract Looks like you may want to contact your HOA attorney today! These two directors are not practicing their fiduciary duties to protect your HOA's assets! But that' just me talken'. Get professional advice.
GnomeX (Washington)
Posts: 253
Posted:
Quote:
Posted By CarolR11 on 12/05/2013 5:09 PM
Remind us. Are you a board of three? And are these the two who are getting off the Board soon? Is there a reason you cannot go knock on their doors? Or your PM can knock on their doors?

Was the contract reviewed by an attorney to protect your HOA? Is the change order (possible extra costs) actually written into the contract Looks like you may want to contact your HOA attorney today! These two directors are not practicing their fiduciary duties to protect your HOA's assets! But that' just me talken'. Get professional advice.

Board of 4. BTW yes I did go by both their homes as well.

Also the extra costs were written into the contract. It was all disclosed up front and on the up and up on the roofing company's end.

For now the drama has come to an end. I finally got one of them on facebook today and she finally called the management company. So the project is now a go but this kinda crap is getting ridiculous. I shouldn't have to waste my time hunting people down to do something as simple as make a friggin phone call.

KellyM3 (North Carolina)
Posts: 2,239
Posted:
Gnome,

I'm glad this worked out for your community. But, if the contract was approved - with acknowledgement that costs could rise - I think the change order would've been pre-approved and not require another board vote unless the changes threatened your financial stability. You've taught me, in the this thread, to cover the bases when he approve a future large contract.

You almost micro-managed yourself out of $9,000.....and I'm sure the two missing board members are two that demand votes on everything.
GlenL (Ohio)
Posts: 5,491
Posted:
GnomeX, why a Board of four? That is a recipe for deadlock are you short one or is that how your HOA is set up? I agree that they were probably playing games but they have a perfect excuse, I was busy with the holidays and didn't have time to respond.

Studies show that 5 out of 4 people have problems with fractions
CarolR11 (Colorado)
Posts: 2,563
Posted:
Say, Kelly, our Board pre-approves change orders up to a certain amount or % of the contract. $200 "extra" on a $2,000 contract is way different from a $6,000 change order on a $40,000 We would want Board approval for the latter. Our Board doesn't see it as micromanaging and neither does our PM.
GnomeX (Washington)
Posts: 253
Posted:
Quote:
Posted By GlenL on 12/05/2013 6:51 PM
GnomeX, why a Board of four? That is a recipe for deadlock are you short one or is that how your HOA is set up? I agree that they were probably playing games but they have a perfect excuse, I was busy with the holidays and didn't have time to respond.

Yep this is another long standing issue. This place is so screwed up I cannot even begin.

The original bylaws specified 5 directors, an odd number. Then someone had the brilliant idea to change the bylaws years ago to where there is no limit on the number of directors. We don't have an odd number currently because no one else will run.

I am really starting to think that the rumors going around that these 2 only got on the Board to sabotage the association might have some merit. They stopped paying their dues several years ago and were liened. One was facing foreclosure. They both finally paid up then ran for the Board last year. BTW both are romantically involved.

But it isn't just this one instance. Other things go on that simply are going to cause legal and other problems. For example they refused to set the dues to a rate to adequately fund the association. We are in deficit spending this year because of these two. They did this against the advice of me (Treasurer), the management company, and the reserve study company.

Another is minutes. One of the two is the secretary and we don't have meeting minutes for an entire year. She simply doesn't do the minutes and keeps saying she will get around to it. We are going to get an audit ding on that one. Worse she took the minutes book from prior years and NEVER returned them. Then she said they must be lost. We have been trying to get the minutes book back from her for probably 6-8 months now.

Fast forward to two weeks ago: the management company started requesting the old minutes for the annual audit, and same story, the secretary would not answer emails. So I had to spend my time trying to contact the old secretary to see if she had backups. As soon as I email the management company what the old secretary gave me, suddenly our current secretary miraculously emails she found the minutes book. This is 5 full days after the management company initially asked for the minutes. She just simply ignored emails from the property manager.

I could go on but you get the gist. At first I thought it was they are just lazy. Now it is looking intentional at least to me. Even our new property manager is starting to see it and getting frustrated.
GnomeX (Washington)
Posts: 253
Posted:
Quote:
Posted By CarolR11 on 12/05/2013 8:05 PM
Say, Kelly, our Board pre-approves change orders up to a certain amount or % of the contract. $200 "extra" on a $2,000 contract is way different from a $6,000 change order on a $40,000 We would want Board approval for the latter. Our Board doesn't see it as micromanaging and neither does our PM.

Outside a Board meeting, the property manager wasn't comfortable approving the change order due to the size of the cost increase without unanimous Board consent via email or phone. The change order was around a 45% cost increase. Original bid $32,500 new bid $47,100. Roughly $14,600 price increase.

We still don't have unanimous consent. One of these 2 Board members still hasn't returned any phone calls or emails but due to the 3 day cancellation clause, property manager is going to approve it with just 3 of us.

CarolR11 (Colorado)
Posts: 2,563
Posted:
Uh oh, Gnome. Does your PM really have the authority to approve the change order? Can you get the three directors to have a quick emergency meeting to approve it?

Wotta a mess there!
GnomeX (Washington)
Posts: 253
Posted:
Well I just put my notice into the property manager to find a replacement. I can't keep doing this shit.
CarolR11 (Colorado)
Posts: 2,563
Posted:
I guess you tendered your written resignation from the Board, Gnome? So sorry you've been pushed into that action. Well, at least maybe you'll get your life back . . .
KellyM3 (North Carolina)
Posts: 2,239
Posted:
Gnome - I can certainly understand a 50% cost increase not making your property manager comfortable. That's bad bidding on behalf of the overall board, which didn't ask the right questions at bidding time or isn't competent to discuss roofs and roof replacement. I can't blame you for resigning. You can't change a board where the majority is incompetent and, contrary to this HOATalk forum, it's not your obligation to be driven insane on a volunteer basis.

Carol - Yes, it's complete micro-management to approve a contract with such contingencies in place that they stop a board-approved action on a contract. Micro-managers NEVER see their management style as negative; they sum it up as being "hands on" or an "active" management style. Micro-management works in environments where common sense isn't required to save the day. Micro-management and common sense solutions don't mesh. I fear many California-based HOAs are checking common sense at the door in favor of the Davis-Sterling Act.....which certainly is used by board directors to seem more competent than they are in a real world and practical sense.

There is a ZERO chance that losing 9 grand to a roofing company due to apathetic board activity makes common sense. The roof is needed, not wanted.
GnomeX (Washington)
Posts: 253
Posted:
Quote:
Posted By KellyM3 on 12/06/2013 6:53 PM
Gnome - I can certainly understand a 50% cost increase not making your property manager comfortable. That's bad bidding on behalf of the overall board, which didn't ask the right questions at bidding time or isn't competent to discuss roofs and roof replacement.

Kelly this wasn't the issue at all. We were informed up front that the bid would only cover the cost to put shingles on the roof and that any other underlying damage would be at additional costs. This wasn't even presented as a slight possibility. It was EXPECTED to be highly likely by both parties as we have known that the roof is leaking and causing water damage. Bottom line is we KNEW well in advance we would have additional costs. The roofing company has been very professional and upfront at every step. The roofing company isn't the problem here. The bidding process isn't the problem.

The problem is we have a deadbeat Board including the Board President that wont do their job by even answering phone calls and emails. These 2 Board members cost this roofing company two days lost time as their crew was sitting around idle waiting on these two assholes to return a simple phone call to the management company.

BTW the Board President STILL has not returned a single phone call or email to either me or the management company. Thankfully the property manager is just moving forward without the President.

The deadbeat Secretary's excuse on her contact delay was that she just thought the delay was due to rain which is complete bollocks. We haven't had rain in two weeks. Clear blue skies. She is just making ridiculous excuses now that she has egg all over her face and everyone sees it for what it is.

Pure incompetence.......

KellyM3 (North Carolina)
Posts: 2,239
Posted:
I'm glad it worked out for you and, at day's end, the board and its property manager didn't cost the dues payers $9,000 over a couple of lost phone calls or unanswered emails. To me, that's more potentially negligent than approving a contract that had cost overruns.

Besides, if everyone on the board and the manager were aware of pending cost overruns, I still can't see why the project would be threatened if duly approved. I'm glad sanity prevailed as you'll always have board members who join with no intention of serving the community.
AnnH5 (Florida)
Posts: 304
Posted:
Maybe the homeowners needed to lose $9K and know WHY they lost $9K. I would hate to see it happen but perhaps you need to let these two Board members "shine their light" for all to see. Nothing wrong with letting idiots reveal their true selves to others.
RebeccaS1 (New York)
Posts: 20
Posted:
Good idea to resign. I'm close to doing so myself. Our board president and treasurer have management in their pocket and won't give other board members association business records. I am really concerned about personal liability as a board member. Too bad resignation seems to be the only recourse sometimes. Wish there was a better way.
GnomeX (Washington)
Posts: 253
Posted:
Well I really think I might not have a choice but to resign. We are about to have a s**t storm with budget problems and I warned these 2 other Board members of that possibility back in October. I told them we had to raise the dues by at least $100. They simply would not listen.

Secretary said she was just looking for a "magic wand" way out of this. "Magic wand" solution was to just ignore the problem and hope it would go away. So they would only go for a dues increase of $50 leaving us in severe deficit spending for the 1st time in years.

We could very well be out of funds in the checking account within 1-2 months and have no choice but to rob from the road fund to cut checks until the next bi-annual dues payments start coming in February.

The reason we are having problems is the roof project is looking like it could cost up to $60,000 due to all the hidden water damage. Also we have an audit coming up and the auditor is requesting a lot of records. No Board member including myself has time to take off to do all this work in the office to pull records. So we now have to bring in more office personnel which wasn't budgeted for either. But I expect they might not want to pay for more office personnel either which means the audit will be pushed back even further.
KellyM3 (North Carolina)
Posts: 2,239
Posted:
Your first step is convince your colleagues to accept professional management who can handle book work, audits and keep an eye on repair needs. You and your board is swamped and needs help; there is no debate based on your honest feedback.

1. There's no time to compile documents for the very service dues-payers need, an audit of your operations.

2. Your secretary is seeking "magic wands." That's sad and incompetent when such statements are matched with board approvals of insufficient financial solutions. Try your best to help and don't get emotionally attached to the HOAs pending bankruptcy. It's not you....and the HOA will recover once smacks the bottom of the check book.

3. No one reported - or the board didn't recognize - the leaks that were ruining your sub-roof. I doubt 100% evidence of this intrusive water was hidden. It's tough to watch over everything.

The $60,000 extra repair bill, which was wholly unexpected, is a qualifying project for a legitimate discussion of a one-time special assessment matched by whatever HOA funds you can muster. .

You really shouldn't do this roof right now....if it's shingles....chase the leaks first and buy time to reorganize before going bust. That magic wand will never be found. Even the captain of your ship can see the rocks on the horizon.

Keep us posted but roll up your sleeves and stick with it. Go quiet before going crazy in arguing common sense, if more-expense, solutions to basic HOA operations.
SteveM9 (Massachusetts)
Posts: 3,699
Posted:
Quote:
Posted By RebeccaS1 on 12/08/2013 5:04 PM
Good idea to resign. I'm close to doing so myself. Our board president and treasurer have management in their pocket and won't give other board members association business records. I am really concerned about personal liability as a board member. Too bad resignation seems to be the only recourse sometimes. Wish there was a better way.

Moving is a good idea...... resigning is never a good idea. Simply sticking your head in the sand and watching the board cost "you" money is the last thing you want to do.

Do people have personality conflicts? Sure. Do you want incompetent people making decisions with your money that will need even more money in the future (special assessments) to fix the problems they made while you sat back and watched? No.

The key is to get even more involved, and get more homeowners on your side and boot them out. It may take time, but its worth it. Its "your" money, your investment!
SteveM9 (Massachusetts)
Posts: 3,699
Posted:
Quote:
Posted By RebeccaS1 on 12/08/2013 5:04 PM
Good idea to resign. I'm close to doing so myself. Our board president and treasurer have management in their pocket and won't give other board members association business records. I am really concerned about personal liability as a board member. Too bad resignation seems to be the only recourse sometimes. Wish there was a better way.

Moving is a good idea...... resigning is never a good idea. Simply sticking your head in the sand and watching the board cost "you" money is the last thing you want to do.

Do people have personality conflicts? Sure. Do you want incompetent people making decisions with your money that will need even more money in the future (special assessments) to fix the problems they made while you sat back and watched? No.

The key is to get even more involved, and get more homeowners on your side and boot them out. It may take time, but its worth it. Its "your" money, your investment!
SteveM9 (Massachusetts)
Posts: 3,699
Posted:
No idea why it posted twice. I only clicked once.
GnomeX (Washington)
Posts: 253
Posted:
Well I haven't resigned officially yet. I just gave the property manager notice that they need to find a replacement for me. I told her my concerns are that these two Board members are going to get our HOA in serious legal hot water. The roof company was calling my home and threatening legal due to lost profit for them losing 2 days work waiting on these 2 Board members to return phone calls.

BTW the President finally responded to me today but STILL hasn't contacted the property manager. I sent him a facebook message (he has no email) and basically told him that he just almost cost us $9,000 for a breach of contract by not returning a simple phone call. I told him acts like that can be viewed as a bread of his fiduciary duty. I also told him my concern that they are there to sabotage to association. His excuse was he thought the project was a go and required no further input. Complete BS I called him and facebooked messaged him that it was imperative he contact the property manager ASAP.

He is now stating he will resign.

This is really a nasty situation. All 3 of us were on good terms prior to this. But I cannot keep silent on such utter incompetence or worse malfeasance. Especially considering I have a roofing company calling me up threatening legal action.

Basically if I go, there will be only 1 Board member left and we will not have a legal Board so I do not know what will happen next. No one is coming forward for the vacancies. Honestly I cannot keep doing it. It is seriously affecting my education. This last week was a major time sink doing damage control and today I failed at least 1 final exam.

GnomeX (Washington)
Posts: 253
Posted:
Quote:
Posted By KellyM3 on 12/09/2013 7:51 PM
The $60,000 extra repair bill, which was wholly unexpected, is a qualifying project for a legitimate discussion of a one-time special assessment matched by whatever HOA funds you can muster.

Well there is some good news this week. So far it is looking like it won't be so expensive. We are looking at around $47,000 to $52,000 currently.

They have decked 1/2 the building and it is looking like new rafters wont be needed except around the skylight areas. They think they can scab in new ones without bringing in a carpenter. Plus all the skylights are shot and that was going to be around another $4,000 but they advised to just deck and shingle over them.

Plus both the Secretary and President resigned so delays like this wont be an issue. For now at least.

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