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MarleneE (California)
Posts: 19
Posted:
We have a newly elected Board except for one Member who most feel has been dishonest and the New Board Members recently "stopped him" from a project by a vote of 3 to 2. He went Ballistic and said you all approved this expenditure and it needs to be done NOW! Although the Board had "signed off" on the contract they were not aware I believe that it was a final agreement and when they heard he had a start date they were surprised as they knew nothing about it.
Many concerns and questions were raised about the legitimacy of the expense and reports where asked for also time was requested to bring the matter before the Community for a vote. I do not want to go into exact detail on this forum. The point is the matter can wait and involves thousands of dollars in repairs. He has now taken up a "secret petition" only approaching his favorite folks to thwart the Boards Investigation and move forward. He wants to overturn their ruling that the project wait. Regardless if he stands to profit from the work and other projects which is speculation so far but I do not believe for long, it strikes me/us that this gathering of signatures is pretty much an indication he will have it his way or no way come hell or high water. I am just wondering what good a petition would do, the proper way to address this would have been an entire Community Meeting so we all could learn the facts then vote? Instead he chose as is his usual practice to put out his side of the "story" to select people and very small groups and garner signatures without the folks knowing that he was being stopped for good cause, concerns and the whole picture. He is not used to being told no as he has ran everything himself spent all he wanted and even signed the checks at one point due to the lack of action of the "older" board. I am not sure how many may have signed it but what power could it have? thanks in advance...
KerryL1 (California)
Posts: 14,550
Posted:
Remind us, Marlene. Are you on the Board?

Next, did the Board approve these expenditures with their vote?? Or not?? what do the minutes of the relevant meeting(s) state??? Has your Board signed one or more contracts for this work???

And now you're saying that the Board voted again to negate one or more contracts that they already approved and maybe signed??

Why do you think the whole community should vote on this issue?? Is it because the cost exceeds certain state limits, or your own HOA limits? If not, there's not reason the community as a whole should vote.

Go to davis-stirling.com to learn about petitions and "special meetings of the members," how they may be called, etc. Also review your own bylaws on the same topic. In CA, members may call a meeting via a petition. But you need to learn much more, Marlene.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Marlene,

My understanding is that he would be able to call a special meeting of the membership to:

a) recall those who stopped the project and replace them with individuals who will allow the project to go forward.

b) other options based on your governing documents and CA law. See:
Powers of Boards and Members on the Davis-stirling website.

the proper way to address this would have been an entire Community Meeting so we all could learn the facts then vote?

Well, be proactive and schedule such a meeting (I write this expecting that you are on the Board and have this authority).
MarleneE (California)
Posts: 19
Posted:
Remind us, Marlene. Are you on the Board?

Next, did the Board approve these expenditures with their vote?? Or not?? what do the minutes of the relevant meeting(s) state??? Has your Board signed one or more contracts for this work???

And now you're saying that the Board voted again to negate one or more contracts that they already approved and maybe signed??

No I am not on the board, I will find out if approval was voted on and yes I think they did sign the contract but I will have to check that out. I will try and post more details. thanks
JohnB26 (South Carolina)
Posts: 1,001
Posted:
No I am not on the board, I will find out if approval was voted on and yes I think they did sign the contract but I will have to check that out. I will try and post more details. thanks


so, once again, talk talk talk without fact checking

JohnB26 (South Carolina)
Posts: 1,001
Posted:
RichardP13,

Thanx for the link.

But, can the BOD unilaterally void a properly executed contract ?!

KerryL1 (California)
Posts: 14,550
Posted:
Based on the link, JohnB, "However, boards are subject to any contracts entered into by prior boards and should not repudiate contracts without advice of counsel."

Read more: Rescinding a Decision http://www.davis-stirling.com/tabid/2267/Default.aspx#ixzz3NOPiDj6L
from Davis-Stirling.com by Adams Kessler PLC

So far as i know, boards cannot simply thumb their collective noses at executives contracts.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
Is there a special assessment or a raise in dues to cover this project? Is it something that reserve funds are or not to be used for? If it needs a special assesment or dues raise, then see issue here. If not, then it sounds like a project someone does not like and thinks has other options to pursue.

I have been on both sides of this issue. My replacement board did a project did NOT agree with. They also did a special assessment to pay for the issue. Dragged my name through the mud to get it done and I had to bring in a lawyef to represent a group of us to get the process done correctly. I did lose in that the new board did get the special assessment approved by majority of members. However, I did win my reputation back as the majority found out afterwards what I was fighting for and the board had lied to them. Lets just say I got ALOT of phone calls of apology including some board members... Too little too late... I walked away...and moved...
When I was President, we had agreed on a project to be done. It was a drainage issue. We had negotiated the contract and put it in the future plans. It was just waiting execution and money. However, the contractor had an employee who jumped the gun. He took our contract out of the pile and commenced doing it. He just wanted a job to do to get paid. I wake up to find a 4 foot trench and piles of dirt in a neighbors driveway. It was too late to stop the project. Yes, we had the contract on hold with the owner but was executed without permission on contractor part who later was fired.

So sometimes need to understand the exact contract agreement and terms before jumping to conclusion. It may be a seasonal thing. Can not paint houses in winter or extreme heat. It may be the contract is only good at a price point for so long. Find out the contracts reasons for existance and then shop for your own options to present.

Former HOA President
MarkM31 (Washington)
Posts: 556
Posted:
Quote:
Posted By MelissaP1 on 12/30/2014 7:37 AM
Is there a special assessment or a raise in dues to cover this project? Is it something that reserve funds are or not to be used for? If it needs a special assesment or dues raise, then see issue here. If not, then it sounds like a project someone does not like and thinks has other options to pursue.

I have been on both sides of this issue. My replacement board did a project did NOT agree with. They also did a special assessment to pay for the issue. Dragged my name through the mud to get it done and I had to bring in a lawyef to represent a group of us to get the process done correctly. I did lose in that the new board did get the special assessment approved by majority of members. However, I did win my reputation back as the majority found out afterwards what I was fighting for and the board had lied to them. Lets just say I got ALOT of phone calls of apology including some board members... Too little too late... I walked away...and moved...
When I was President, we had agreed on a project to be done. It was a drainage issue. We had negotiated the contract and put it in the future plans. It was just waiting execution and money. However, the contractor had an employee who jumped the gun. He took our contract out of the pile and commenced doing it. He just wanted a job to do to get paid. I wake up to find a 4 foot trench and piles of dirt in a neighbors driveway. It was too late to stop the project. Yes, we had the contract on hold with the owner but was executed without permission on contractor part who later was fired.

So sometimes need to understand the exact contract agreement and terms before jumping to conclusion. It may be a seasonal thing. Can not paint houses in winter or extreme heat. It may be the contract is only good at a price point for so long. Find out the contracts reasons for existance and then shop for your own options to present.

How can you execute a contract without permission? The contract says "go" unless there are internal clauses inside the contract.
JohnB26 (South Carolina)
Posts: 1,001
Posted:
How can you execute a contract without permission?


Did you mean TERMINATE a contract w/o permission ?

One executes a contract as per the contract itself as is has been signed by the 'contractees'.

One may NOT terminate a contract w/o consent of the 'contractees'.

There, those pesky things called, um, let me see, aaaah: words.



MarkM31 (Washington)
Posts: 556
Posted:
Quote:
Posted By JohnB26 on 12/30/2014 9:36 AM
How can you execute a contract without permission?


Did you mean TERMINATE a contract w/o permission ?

One executes a contract as per the contract itself as is has been signed by the 'contractees'.

One may NOT terminate a contract w/o consent of the 'contractees'.

There, those pesky things called, um, let me see, aaaah: words.




You're wrong too. I meant execute the contract. That's why I wrote it.

Melissa was talking about an instance where a contractor with a signed contract started work prior to the HOA having their internal funding apparatus in place, and how much trouble it caused. I contend that baring any other verbiage in the contract, any clauses setting start dates or contingencies upon funding, that the contract says "go" ( or even "execute"). No other permission is needed.

Words are important, that's why grammar nazi's need to read carefully
MarleneE (California)
Posts: 19
Posted:
so, once again, talk talk talk without fact checking

JohnB you are right. I view this forum as in part a support group, whereby you can just log on and vent and then see if others commiserate so to speak. It would be impossible to give the entire history of this person or project without fear of disclosure. I understand I am lacking all the facts. I am working towards getting them, meanwhile sometimes it just helps to have a friendly reply while I try and understand the process. There is no need for you to be so blunt it's apparent you like to help and use this forum so why not use a little less critical language?

I appreciate the link about rescinding a contract and have forwarded it. Regardless of what I have been able to offer I have received some good advice. Thanks everybody!
MelissaP1 (Alabama)
Posts: 13,836
Posted:
To clarify... We had done work with the contractor a few months before. They did really great work. An owner then requested a project (Which I did NOT agree with being our responsibility) to be done. She wanted a retaining wall installed in the back of her house to prevent her A/C from flooding in the rain. (A few bricks would have fixed the issue but she refused). Anyway, I was out voted and had to go with installing a new retaining wall. The contractor was approved by the board and I had brought them out for a quote. Plus we had several other projects we were looking for and the contractor was in agreement of "lowering" the price for the jobs if we used them more than once. So we drafted up a few quotes at the time on other jobs we had in the works.

I had talked to the owner and told him that we would be ready for the project in a few months. That way we could get on his list as he was typically booked a few weeks/months behind. However, one of his employees took it on his own to "Pick and Pull" jobs from the folder on his boss's desk unbeknownst to ANY of us. Something he was dismissed for. I worked 2nd shift and did not get up until 10 am. I woke up to find they had already started the job with no phone call or contact. NOT a good morning!!! Especially since many of the workers did not speak English and my Spanish is not good...

So not all contracts go as planned... Execution of a contract can hold a new host of issues beside just awarding it...

Former HOA President
MarleneE (California)
Posts: 19
Posted:
Is there a special assessment or a raise in dues to cover this project? Is it something that reserve funds are or not to be used for? If it needs a special assesment or dues raise, then see issue here. If not, then it sounds like a project someone does not like and thinks has other options to pursue.
Thanks Mark!
No special assessment just an ongoing pouring money into something that we are pretty sure is a kick back issue. As is the norm we believe for this person. The project could be done and most likely needs to be done, but it could have been done earlier at less cost or it could certainly wait until all the records are located. Every incident of management on this item by this person alone reeks of improper conduct and unnecessary expense. This person has run amok for so long I find it unbelievable at times. The contract involves the expert service industry and no supplies or expenses have gone forth, any reputable company providing this service would only be too happy to delay if we wanted to seek further clarification. But this individual is "pushing this so hard" and threatening contract crap that any reasonable person would question.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Marlene

Are you saying that the "contract" is for professional services such as legal, accounting, property management, etc. versus physical like stop building a wall in the middle of the project?

I am not nor do I play a lawyer.

A properly written contract may have to "play" out to its end or one may have to pay an early our penalty such as a one year cell phone contract.

I also do not know if a "petition" in CA can over ride a BOD decision versus call for an open meeting to discuss.

You say you are trying to no say to much, but some of us need more info to be able to better advise.

JohnB26 (South Carolina)
Posts: 1,001
Posted:
To 'quarter' the nit:

I contend that baring any other verbiage.....


Personally, bare verbiage is a turn on...........................

unless you meant barring.........................................

I do see how your use of execute IN ANSWER TO A QUESTION could/would be appropriate albeit confusing.

PEACE, brother ....
KerryL1 (California)
Posts: 14,550
Posted:
The trouble as I see is, Marlene, that you toss in phrases like " any reputable company providing this service would only be too happy to delay if we wanted to seek further clarification."

Who is this "we"?? You're not on the board and the board approved and executed the contract, right? In addition, words like "reeks," "run amok," and "we're pretty sure is a kickback issue," really tell me soooo little. Try to stick to the facts, vs. speculation.
MarkM31 (Washington)
Posts: 556
Posted:
Quote:
Posted By JohnB26 on 12/30/2014 2:08 PM
To 'quarter' the nit:

I contend that baring any other verbiage.....


Personally, bare verbiage is a turn on...........................

unless you meant barring.........................................

I do see how your use of execute IN ANSWER TO A QUESTION could/would be appropriate albeit confusing.

PEACE, brother ....

Whatever.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Quote:
Posted By MarleneE on 12/30/2014 1:22 PM

The project could be done and most likely needs to be done, but it could have been done earlier at less cost or it could certainly wait until all the records are located.

Contradictory statements there.

Both statements certainly can be valid. However, the choice needs to be made to have the project go forward now without the records (which may or may not be found) or to delay the project and incur additional expense (simply for cost of materials and/or labor).

As others pointed out, the Association entered into a contract. Delaying the contract will likely incur additional expenses as the contractor made a quote based on current conditions (availability of crews, cost of material, cost of labor, etc.). Since delaying the contract can cause damage to the contractor (damage in the form of the need to hire more crew, pay a higher cost for materials, etc.) the Association would likely need to pay that difference (sort of an order change when building a house).

Additionally, since the Association has entered into a contract, it's possible that they will need to pay for the contract regardless if they allow the work to be done or not. This will depend on the terms of the contract.

Quote:
Posted By MarleneE on 12/30/2014 1:22 PM

Every incident of management on this item by this person alone reeks of improper conduct and unnecessary expense.

And every expense was likely approved by the Board (either by agreeing to terms in a contract, by agreeing to individual items or simply by not having a policy in place on how Board members will be reimbursed).

Quote:
Posted By MarleneE on 12/30/2014 1:22 PM

This person has run amok for so long I find it unbelievable at times.

They were able to run amok because he Board allowed it.
If the person was reelected, then the membership also allowed it.

Quote:
Posted By MarleneE on 12/30/2014 1:22 PM

The contract involves the expert service industry and no supplies or expenses have gone forth,

That statement shows a lack of knowledge or inexperience in how contractors work.

Unless you are the contractor, you have zero knowledge if agreements for materials, labor or scheduling of other jobs were done based on the contract your Association has with your contractor. Jobs may have even been turned down because they had an existing contract with your Association.

Quote:
Posted By MarleneE on 12/30/2014 1:22 PM

Any reputable company providing this service would only be too happy to delay if we wanted to seek further clarification.

Again, this statement shows a lack of knowledge or inexperience on how contractors work.

You want to seek clarification. Well how long will that take? If you don't know the answer to that simple question, then the contractor has no idea on how to schedule materials, labor or other jobs. If you do know the answer to that question, the actual scheduling of materials, labor and other jobs simply might prevent the contractor from fulfilling the terms of the contract with your Association (as I seriously doubt that they are going to jeopardize other contracts for yours).

Quote:
Posted By MarleneE on 12/30/2014 1:22 PM

But this individual is "pushing this so hard" and threatening contract crap that any reasonable person would question.

This is an issue for the Board.

If I recall correctly, your spouse is currently serving on the Board. Perhaps you should direct your concerns to him so he can take the necessary steps to delay the project (which may or may not increase costs or require the Association to pay a penalty).

You can go about the membership gathering support to either recall or simply not reelect the individual.

KerryL1 (California)
Posts: 14,550
Posted:
Thanks, Tim, for elaborating on others' responses to Marlene. You are a persons of great patience!
CyrstalB (Maryland)
Posts: 457
Posted:
Quote:
Posted By KerryL1 on 12/30/2014 4:10 PM
The trouble as I see is, Marlene, that you toss in phrases like " any reputable company providing this service would only be too happy to delay if we wanted to seek further clarification."

Who is this "we"?? You're not on the board and the board approved and executed the contract, right? In addition, words like "reeks," "run amok," and "we're pretty sure is a kickback issue," really tell me soooo little. Try to stick to the facts, vs. speculation.

Have to laugh, cause those words tell me a lot about the whole issue!

MarleneE (California)
Posts: 19
Posted:
I give up its impossible to give half facts and expect anything but half answers. thanks for your time!
JohnB26 (South Carolina)
Posts: 1,001
Posted:
DOH
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Quote:
Posted By MarleneE on 12/31/2014 7:42 AM
I give up its impossible to give half facts and expect anything but half answers. thanks for your time!

Marlene

Allow me to rephrase the above reply and maybe give you a lesson is how to make friends and influence decisions:

I would like to thank all of you for your comments. As I am a bit paranoid about people finding out about/using my posts against me, I was unable to properly present all the facts. I realize my inability to present all the information prohibited me from getting complete/specific answers.

Again, thank you all.

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