Petition could cost Members—GM
GENERAL MANAGER BY BOB MARIANI
There are two Members who are proponents of a petition that will call for a vote to reverse proposed amendments to the Association Rules related to the Reserve Funds.
If this petition is successful, a vote costing several thousand dollars and many hours of staff and volunteer time may be necessary.
One basis for the petition and desire to reverse the proposed Rule changes appears to be a claim that the amended Rules will allow the Reserve Fund to be a “slush fund”, which is false. The other claim appears to be that the common areas that were turned over by the Developer must be booked and included in the Reserve Fund. This claim or demand is not accurate and actually makes no sense as explained below.
Let’s take the first issue that is a claim that the Reserve Fund will becom e a “slush fund”. The fact is that nothing in the proposed amendments to the Rules will alter what components (items) are included in the
Reserve Fund or how the Reserve Funds will be used. The purpose of the proposed Rules amendments is to consolidate thecurrent two Reserve Funds into one Fund which simplifies accounting and reporting and results in Lake Wildwood having a single Reserve Fund like the vast majority of associations in California and the Country. Even the petition proponent’s attorney stated
, “It is my understanding that the Association has seen the error of its ways and will be operating under a single reserve account in the future.”
In regard to booking (capitalizing and depreciating) all common areas, facilities or assets (however one wants to define these components) turned over by the Developer, there is more than one reason why Lake Wildwood and many communities don’t do that. The one reason that I’ll point out in Lake Wildwood’s case is even if the Board were to book these components, the improvements/facilities would all be completely depreciated by now and would have no book value at this time. In regard to the land, it makes no sense to book the land and include it in the Reserve Fund due to the fact that land is not replaced. For example, components of the Golf Course such as bunkers and greens are replaced every several years; however, the Golf Course land will never be replaced and therefore should not be included in the Reserve Fund as a component that will be replaced.
The bottom line is that as noted above, the petition if successful will cost the Association a few thousand dollars and many hours of work for two purported issues that have no merit.
LAKE/E. COLI ISSUES:
And now a word about the ongoing E. coli investigation. First and foremost, the sole purpose of this investigation is to discover the cause of the outbreak and take appropriate actions to ensure, to the greatest extent possible, that it doesn’t happen again.
This is going to involve some very complex and expensive testing and analysis as we move into the spring and summer months.
Our relationship with the County, as to who does what and who pays for it, is still a work in progress. We do have a contingency plan in progress if we have to go it alone.
It is now common knowledge that seven (7) individuals filed claims against the County for monetary damages as a result of the outbreak. All these claims have been filed by one Sacramento law firm and are shotgun in their approach. These claims are required to be filed within six (6) months to be able to sue a public entity.
The County has denied all of the claims. As a non-government agency, we have a two-year statute of limitations, and it would be naïve to think we would not be named in a future lawsuit. Unfortunately this complicates our relationship with the County and how we communicate with our membership.
On March 20, we took five samples around the Lake to test for E. Coli indicators. The purpose was to get a post-storm baseline for the Lake in general. All five (5) tests were in the main body of the lake and in our bays.
All the results fell within California recreational guidelines. It is too early in the season to take meaningful readings at the shorelines where we saw some sporadic results above state guidelines last August. That will follow this spring and summer.
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