Questions to Ponder

Originally we were told there was no loan and then at the Annual Meeting the treasurer, Phil Bentz, reported that the Board President signed for the $100,000 loan that has been in question. There is no record of this loan being submitted for Board approval.

The Board President at that time was Carl Holmes.

Why did Carl feel so free to violate the bylaws and sign for a loan without the voting consent of the Board?

Where did the money go???

How long does an investigation of stolen office funds take? 

Maybe this missing $15,000 has no more importance then the $20,000 front entrance debacle or the $70,000 seawall farce or the $130,000 spent on legal services for violating the bylaws in the removal of a director or……the list goes on and on.

Committee Reports:

Budget and Finance Committee: June 2008     

Jackie Pirics is Chairman and members are Al Allender, Dick Anderson, Bob Blue, Betty Cea, Moe Cea, Margaret Elliott, Steve Elliott, Judy Fagert, Steve Jenkins, Bob Meldrum, Dick Myers, Kathy Riley, Nellie Robinson, Bob Sichel and Angie Ward.

This committee meeting was cancelled.

Editor’s Note:  Bob Sichel, vice chair, will no doubt again chair this committee since Pirics, a first time Board Director, was elected President of the Board.  Gee, I guess that all those questions that Jackie promised to get answers for as chair now go by the wayside.

Property Committee (July 7, 2008)   Bob Blue is Chairman and members are Ed Arnold, Julie Arnold, Betty Cea, Mary Cornett, Liz Dumaree, Margaret Elliott, Steve Elliott, Judy Fagert, Chris Gustafson, Sharon Harper, Sharon Holmes, Jim Jennessee, Fran Kovach, Vince Marcellino, Kay Myers, Lorraine Stanson, Don Ward, Carol Webb, D.J. Young,  and Marie Zangmeister.

The committee met as agreed upon at the last meeting at the Clubhouse.  The acoustics of this building were far more conducive to a productive meeting than were the poor acoustics of the new administration building addition.

After some discussion the minutes were approved with some correction.   In new business a motion was made and passed that this committee asks the AV Board for permission to once again use the Request Forms.  These forms make it much easier to present and track information sent to the Board.Harmer attended the meeting to update us on the status of capital projects.  This update included the following information:

- Drainage easement maintenance goes on year after year.

- Message signs are now up at the beaches.

- We will be blacktopping the county access road that goes to the cove.  There is a plan to put rocks in at the end of the road so that boats and jet skis can no longer be launched there.

- Dock padding is on back order

- The front entrance is almost finished.

- The restrooms will be going in Bennett Park after they get the easement.

- The Exercise/Fitness room will probably be moved to the Barn in 2009.

- Harmer plans to hire a consultant for suggestions for the Clubhouse kitchen renovations.

- The Clubhouse presently has no public telephone, but there are plans to install
one next to the vending machines located at the basement steps.

- The Floral Valley pool attendants’ room was built and located in the pool area si that the pool will be supervised even during breaks.

- The Property Committee will not have the right to see the plans for the new addition to the maintenance building.

- A more permanent sign will be put up on Apple Valley Drive designating the location of Davis Beach.

Editor’s Note:  Harmer was quite emphatic and definite that this committee will not see any plans for the maintenance building addition and I fear that this is how all future additions will be handled.

Lake Committee (July 7, 2008)

Bob McLaughlin is Chairman and members are Bob Blue, Curt Campbell, Maurice Cea, Margaret Elliott, Steve Elliott, Judy Fagert, Bill Gordon, Roy Landskroner, Bob Neumann, Jackie Pirics, Sally Slonaker, John Sutherland, and Carol Webb. 

Jackie Pirics reported that there are now twenty two people on lake patrol.  Jackie will continue with this group until a replacement for her is found.  Water testing was done again this past month.  It was decided that there needed to be spot treating for weeds around the beaches.  Fish Club reported that they have a lot of activities coming up.  One is the Youth Fish Tournament.  People have been remarking to the Club that fishing is tougher this year than normal.  The Fish Club has been talking about stocking fewer fish and what they stock would be larger fish.  The Club has been asked to make a five year plan for stocking and they are seeking closer sources than Wisconsin for the stock fish.

In new business a motion was made and passed for the Lake Committee to move to the Clubhouse for their meetings because of the bad acoustics in the new administration building addition.

Steve Elliott, Publisher and Editor

        

Phil Bentz Says That Carl Holmes Signed For The Loan!!!!

The AVPOA 2008 annual meeting was held Saturday, June 21^st at Floral Valley. In the President’s Report, Dave Patton praised the volunteers and also stated that the office theft investigation is still in progress.  Board accomplishments for the year have been establishment of a Campers Village standing committee; fee increases for Campers Village; granting a gas line easement; approving a financial plan; approving an operational budget; and discussion of a 100% increase of the assessment fee for new owners.  A visual presentation was given by Harmer about the past year.

Treasurer Bentz gave an explanation about the $350,000 loans that have been questioned by Margaret Elliott.  He once again gave us the bad news that the Board has spent $75,000 more than was taken in this year.

Committee reports were given that simply reiterated what has been presented previously.

Betty Cea, Election Chairman, reported the results of the voting.  They are:

          Al Allender-956

          Don McDaniel-704

          Jackie Pirics-851

          Linda Woggon-929

The new board members are Allender, Pirics, and Woggon.

Bylaw changes vote was 844 for and 385 against.  The revisions are now approved.

Words of thanks and gifts were presented to the retiring members Denny Rawson and LaPrad.  Lawyer Ressing was included in this.

The meeting was adjourned with the invitation that those owners wanting to inspect the ballots could do so at the end of the meeting and that the Board would adjourn to the Barn to elect the new officers.

Editor’s Comments

The theft investigation is still in progress?  This started six months ago….let me resolve the issue…Jeff Harmer in his own words in court stated that as the general manager the final responsibility lies with him….so let’s take him up on that….Jeff pay back the $15,000 or whatever it is….End of investigation!

I still see the operational budget as being over inflated by about $250,000 as a result of Harmer posting the salaries twice in the budget and it seems that the Board is well aware of the fact.  I think that this is how we repay loans. With the new bylaw change we will never have a chance to know.

The Bylaw change takes away the owners’ right to any financial information other than the financial statements that are conjured up by our manager, treasurer, and Board. Of course we should not feel resentful because the Board voted last year not to have pertinent financial information.  Who will have all the information?  Harmer and the new Board President  We have heard that the new officers are president Pirics, vice president Allerton, Treasurer Bentz, and Secretary Harmer. 

Speaking of Harmer we hear that he got a very nice contract with a raise well above a cost of living increase and that the Board’s control over Harmer has been limited even further. He now answers only to the Board President and that would be Jackie Pirics.  Do you remember her?  Check out the RAV posting on 3/26/2008.  There we disclose her defaulted judgments in both the Knox County Common Pleas and the Municipal Courts regarding her failure to honor her obligations to two credit card companies. The collection of those debts are stalemated because the house on Apple Valley Drive and the condo in Columbus belong to a George Pirics, who claims to be unmarried on documents pertaining to these properties.  Now Jackie has been given pretty much sole control of the AV money…… this is scary.

Bentz continues to talk about deficits so owners be prepared for fee increase proposals. A cost of living increase is already added to our assessment fee each year and the spenders still want more!

A statement at the end of this posting from Margaret Elliott addresses the loan comments given by Bentz. I just feel compelled to add that Bentz has said that he contacted the bank regarding the loans…..Phil; did you get your answer from the bank door frame, window, or floor????

The bylaw change about being able to dismiss a Board Director for any reason just tells me that the only thing that these people learned from the expensive Pullins dismissal was how to make it easier to do bad things to their fellow directors without being held responsible.

The inspection of the ballots was requested by attorney Scott Pullins in behalf of plaintiffs Kathy Pullins, Judy Fagert, and Steve Elliott. Typical
of the manager, Board, and AV attorneys, not all the requested information was made available.  However, with what was provided and with a few phone calls, it was clearly established that there are discrepancies and that the integrity of our elections is definitely in question.  This will be addressed in the pending law case.

Statement from Margaret Elliott:

I was amazed at the new tale spun by Phil Bentz at yesterday’s board meeting.  It was, in my opinion, concocted to forestall any answer to the letter that I delivered to the office for the Board on June 17, 2008. It was a yarn spun about loan numbers now being tracking numbers, floor plans being promissory notes, and information given by a “no name” bank official.  I do believe that the name of First-Knox National Bank Vice President Mark Leonard, who was the head of commercial loans in 2006, would not have been that hard to pronounce or spell. 

The only new credible information from Bentz was that the person who signed for the $100,000 loan that was used for who knows what was Carl Holmes.  The AVPOA members need to remember that this loan was not voted on by the Board.  Did Carl also sign the UCC?  Do you remember that he was the Board president, who initiated dismissal action against Kathy Pullins after she started pressing for financial information?

With the new bylaw that prevents owners from getting financial information, I doubt very much that I will receive a letter from a board officer to the bank.  The only other way to  get the information as stated by the First-Knox National Bank attorney is to subpoena thebank.  That means another lawsuit against the Apple Valley Board!  I am considering whether or not to do so.  That should be music to the ears of Keglar and Brown, who apparently advise our Board to keep everything a secret and how to lump all the bylaw revision changes into one ballot.  Stay tuned regarding a NEW LAWSUIT…… 

Margaret Elliott

June 17, 2008

AVPOA Board of Directors
113 Hasbrouck Circle
Howard, Ohio 43028

RE:  AVPOA Loan #272392499

My last correspondence from this Board regarding loan # 272392499 was a letter from Phil Bentz stating that the First-Knox National Bank Loan Supervisor could not find any loan that corresponded to this number and Phil stated that if I could provide any further information to find this loan that he would be willing to pursue this matter.

In regards to this, I have contacted the Customer Assistance Group of the Comptroller of the Currency and based on the information that I provided they opened the case and contacted First-Knox National Bank.  I have enclosed that Customer Complaint Form, the OCC’s response, and also the letter that I have just received from Ken Lane, attorney for First-Knox National Bank. 

Please note that in the complaint I also included Loan #272392401 in the amount of $100,000.  Previously Bob Meldrum and Bob Sichel had explained this loan away as being the floor plan in the financial statement for boat purchases.  Prior to filing my complaint with the OCC, I learned that the collateral for a bank floor plan loan would have been the boats purchased not all the assets of the AVPOA.

Mr. Lane has suggested that a letter be provided to First-Knox National Bank by an officer of the AVPOA Board on AVPOA stationary authorizing that this information be disclosed to me.  Once this letter has been processed the information will be sent to me.  Also note that the bank has a research fee.  I acknowledge that I would be responsible for this charge.

Once again I want to emphasize to the Board my great concern about loans being taken out on AVPOA collateral and repaid by AVPOA funds.  Who is preempting the Board’s authority and signing for loans in the association’s name?  Where is that money since it cannot be accounted for in our financial statements?  I do believe that the AVPOA owners have a right to expect the Board to fulfill their fiduciary responsibility in regards to tracking down $350,000 in unaccounted for and unauthorized loans.  I believe that this is our opportunity to find out the name of the culprit/culprits.  All that is required is a letter from a Board Officer to the bank.

Thank you for attention to this matter.

Respectfully,

Margaret Elliott
1688 Apple Valley Dr.
Howard, Ohio 43028

Enclosures: 

Ten packets of OCC Customer Complaint Form
Letter from the Comptroller of the Currency Office re Case #785658
Letter from attorney Ken Lane

Steve Elliott, Editor and Publisher

        

The following letter was received from longtime AVPOA member Bruce Williamson.
Steve Elliott, Editor & Publisher
 

To the readers of Reform Apple Valley

I feel relatively assured that everyone is aware of the necessity to vote no for the bylaw changes. Not only was there the open letter from Board Member, Kathy Pullins, I received an e-mail message from another board member urging their friends to vote no. I am amazed that two board members (I am sure there are others doing the same) have openly expressed their opinion to vote no on the changes and both claim they had no previous knowledge these were being sent out.

I would like to point out the statement Kathy Pullins made in her open letter, "AVPOA’s Board, its Officers, and its General Manager must remember that the members own and control the AVPOA" is true, however, it seems obvious that the Board members are not insisting that all actions of the management be subject to their approval and nothing can be done until they approve it.

Lets look a little deeper into a few issues.

Item #1. Two major changes in the bylaws that would have a huge negative effect on the continued and healthy operations of our Association have been presented in such a method as to obtain a favorable vote without the voter understanding the negative impact of the issues. Four (4) bylaw changes in 1 package and only one vote to approve or disapprove them all. Board members have openly admitted to me that these issues were not presented to them for their approval.

Item #2. It seems that every year for the last few years, there has been a major project. These projects could be delayed for even one year, if in fact Apple Valley is short on reserves. That would be a business like method of handling finances. I am also told that these projects are often done without an estimate or if there is one it seems not to reach our elected Board Members for their approval. In many case the work is actually done by AVPOA employees (while on the established payroll?), and should there be a workmanship problem (such as the wall at the marina or stone erection at the entrance) the estimate nor the contract and/or contractor cannot be located to make corrections. I am told this year’s project is adding restrooms at Bennett Park.

Item #3. The election system needs to be monitored by an independent source, outside the control of the AVPOA office, thereby making our annual elections fair to all.

Item #4. The need to open The Cider Press for comment by the members of AVPOA. A page dedicated to "letter to the editor" would allow all of us to be aware of issues.

Item #5. When elected, our Board Members are required to sign a statement that we, the owners, are not to be given any information. If they don't agree to sign or if they "leak" any information to us, they are subject to removal.

Yes, we have problems. More than just the bylaw changes. I urge every member who reads this letter to call a board member who you know or for whom you voted. Ask them if these issues are as disturbing to them as they are to you. Insist they stand with us and take back our Association.

I do not intend this letter as an indictment of anyone. I only highlight major topics of concern for your personal reflection.

No changes can be made if we, the owners of Apple Valley Property Owners Association, and our elected Board of Directors continue to allow ourselves to be hoodwinked and intimidated. We must stand together and demand that our BOARD is the controlling body and our manager is their employee. Call it MICRO-MANAGE if you wish. I call it good management principals that every owner must apply to be successful.

Think about it and call your Board member today.

Bruce Williamson
Fellow Member of Apple Valley Property Owners Association

FYI

Phil Bentz    397-1602             Kathy Pullins     397-9504

Roger Dumaree  397-6626        Dennis Rawson 393-2779

Amy Gordon       397-6857         Dee Zarbaugh   397-7974

Carl Holmes       392-2298

Robert LaPrade  397-4633

Don McDaniel    392-6180

David Patton      392-1255

        

Budget and Finance Committee: (May 28, 2008 meeting to review April 30,2008 Financial Statement)   Jackie Pirics is Chairman and members are Al Allender, Dick Anderson, Bob Blue, Betty Cea, Moe Cea, Margaret Elliott, Steve Elliott, Judy Fagert, Steve Jenkins, Bob Meldrum, Dick Myers, Kathy Riley, Nellie Robinson, Bob Sichel and Angie Ward.

There was some discussion about where the condo fees appear in the financial statement.  It was decided that they are listed under temporary memberships.  The Cider Press advertising income is below the amount that has been budgeted.  The Cider Press has been budgeted $3,000 for equipment and software upgrades.  Thus far $640 has been spent.  A question was asked about whether it would be wise that the Board reconsider this expenditure since the Cider Press income is down, which is no doubt a reflection of tighter economic times.

Last year at this time the Marina had sold a couple of boats. No boats had been sold yet by April of this year.

A question was asked of the Committee about whether the employees are allowed to accrue sick and vacation time since this is not reflected in the financial statement.  No one knew the answer.  Neither Jeff nor our accountant attends the meetings because of the pending lawsuit.  Pirics will try to get the answer by the next meeting. Margaret Elliott tried to give simple definitions of a UCC filing and a floor plan. Pirics and Phil Bentz did not permit this because the attorneys have advised the Board of Directors not to discuss financial information.

Editor’s Note: The attorneys have advised their clients not to discuss financial problems allegedly because of the lawsuit. If this is true, rather than allow the Valley to shut down would it not be more advisable for the defendants to step down/ remove themselves from office until the pending litigation is resolved?

Some budgeted items that have not been spent yet as of April are $40,000 to repair, patch, and seal coat the asphalt pavement at the admin building, $11,000 for the electronic message sign at the admin area, $5,000 for a engineering study for a sewer at Campers’ Village, $47,502 for the Clubhouse remodeling project completion, $8,000 for outside painting at the Clubhouse, $15,731 was budgeted in 2007 and $30,665 was budgeted in 2008 for upgrades at FV ($35,375 remains to be spent), $65,000 for a new maintenance shop addition, and $14,783 remains to be spent at the marina for a tractor, compressor, flooring, etc.

Under the agenda item of Old Business, Jackie Pirics was asked if she had obtained the additional information that had been asked for last month about Marina, Cider Press, and phone and gas expenses.  She had not.

Editor’s Note: New Chairman, same old routine, questions asked but never answered.

Pirics handed out copies of the AV Cash out Procedures. The Committee will review them and make recommendations to the Board that should help prevent any future theft in the office.  Dick Anderson, who is a member of the Audit Committee, chaired by Dumaree, interjected that there had been discussion in that committee that the review of these checks and balances belonged to their committee.  It was the consensus of this committee that Audit Committee is responsible for hiring, drawing up the contract and then seeing that the terms of the contract with the auditing company are fulfilled, but that the day by day procedures of AV checks and balances procedures fell within the review of this committee.

Editor’s Note:  The simple definitions that were too dangerous for our Board Director Phil Bentz and Amy Gordon to hear in this meeting were:  “In plain language, the Uniform Commercial Code allows a creditor to notify other creditors about a debtor’s assets used as collateral for a secured transaction by filing a public notice (financing statement) with a particular filing office” and that “a floor plan loan is secured by the collateral of the autos, boats, etc purchased”.

All this makes me wonder why the AV attorneys are always putting a gag order on our Board.  I thought that this was only done when someone was guilty of something.  I know that in the legal case of Pullins’ dismissal from the Board, the rest of the Board was under a gag order and they lost.  Is this going to be true of the pending lawsuit?

I am beginning to wonder what law firm is representing the AVPOA. Where was the AVPOA attorney suggesting to the Board to reinstate Pullins before over $130,000 was spent on legal fees? Where was the AVPOA attorney when lake front common property was sold for $500 to a property owner so he could put an addition on his home? Where was the AVPOA attorney when common property was being given away for a gas easement? The Board has attorneys representing them. Jeff Harmer has an attorney representing him. Who is representing the property owners??????????

Property Committee (June 2, 2008)   Bob Blue is Chairman and members are Ed Arnold, Julie Arnold, Betty Cea, Mary Cornett, Liz Dumaree, Margaret Elliott, Steve Elliott, Judy Fagert, Chris Gustafson, Sharon Harper, Sharon Holmes, Jim Jennessee, Fran Kovach, Vince Marcellino, Kay Myers, Lorraine Stanson, Don Ward, Carol Webb, D.J. Young,  and Marie Zangmeister.

There was extensive discussion about efforts being made to “sanitize” the Properties Committee minutes.  The consensus of the majority of the members was that the committee minutes need to be an accurate recording.   Also there was some evidence that some Board members and Jeff Harmer were involved in the attempt to “sanitize” the Properties Committee minutes.

Property Committee is continuing with the inspections.  At this meeting there was a discussion about needing better communication with the Board.  Members expressed their concern about no longer having real input.  Examples of this were the new administration addition and the new covering at the entrance of FV at the banquet hall entrance.  Properties Committee no longer has the right to see and approve blue prints of building changes.  The committee had been told that the FV entrance would have a canopy instead of the picnic shelter type structure that was built.

The acoustics are very bad in the new administration addition and the committee voted to return to the Clubhouse for future meetings.

Lake Committee (June 2, 2008) Bob McLaughlin is Chairman and members are Bob Blue, Curt Campbell, Maurice Cea, Margaret Elliott, Steve Elliott, Judy Fagert, Bill Gordon, Roy Landskroner, Bob Neumann, Jackie Pirics, Sally Slonaker, John Sutherland, and Carol Webb.

There was discussion about the Condos near the golf course being a part of AVPOA.  Some of the members were not aware of this.  It was a matter of concern to the committee about how the lake rules are being conveyed and enforced when the condo people use or rent boats.

Bob McLaughlin is looking forward to getting an answer from the Board regarding which company has been chosen for the dredging study.  Also in the near future he should be receiving copies of the Creel Study and the Shocking Study.

There was further discussion about building a jetty to protect the swimmers at Davis Beach and what the impact of new docks would be in that cove.

Steve Elliott, Publisher and Editor       

             

           

        

The following letter was sent this past weekend to every household in Apple Valley by AVPOA Director Kathryn Elliott Pullins:

“AVPOA’s Board, its Officers, and its General Manager must remember that the members own and control the AVPOA.”

 
The Honorable Richard J. Markus, Visiting Judge
Assigned by the Chief Justice of the Ohio Supreme Court
December 4, 2006

 
Dear Fellow AVPOA Member:

             I’m writing to urge you to join me in VOTING NO on the proposed bylaws changes submitted to you by the Apple Valley Property Owners Association (AVPOA).  If passed, these bylaws would strip your right to elect the directors of your choice and impact your ability to monitor the finances of the AVPOA.

 
Change #1 – AVPOA Could Remove Directors for ANY Reason!

 
            The AVPOA leadership is proposing that you amend the bylaws to let them remove a duly elected director for any reason.  This effectively eliminates your vote for director. 

 
            Approximately two years ago, the AVPOA leadership removed me as a director after I began to question the financial practices of the association.  I was returned to the position to which you elected me only after a long and costly legal battle.

 
            Instead of learning from their mistakes, the AVPOA leadership is now trying to seize the ability to remove anyone that disagrees with them.  Don’t give up your vote.  VOTE NO on the bylaw changes!

Change #2 – AVPOA Could Hide Most Financial Records!

            Under well established Ohio law, a member of the AVPOA is permitted to view any record, especially financial records of the association, for any reason.  Nonetheless, the AVPOA leadership continues to conceal records from you and I in clear violation of this law.

 

            Now they are asking you to permanently enshrine this illegal practice in our bylaws.  If this change is made, you and I will be unable to effectively monitor the spending and management of the association.

The AVPOA has a number of financial and management problems including:

•         A former AVPOA employee has been recently accused of stealing over $15,000 in membership funds from the AVPOA office.

•        One or more individuals purportedly acting upon behalf of the AVPOA has taken out hundreds of  thousands of dollars in loans without the knowledge or consent of the AVPOA Board.
 

Don’t give up your ability to monitor the finances and management of the AVPOA.
VOTE NO on the bylaw changes!

Sincerely,

 

Kathryn Elliott Pullins
Member, AVPOA Board of Directors

        

AVPOA Board Meeting - May 20, 2008

All Board members were present.  The Minutes from last month were approved.  The Treasurer reported that there was a decrease in income in 2007 with the Association spending $70,000 more than our income.

In the President’s Report, Patton’s only comment on the missing funds at the office was to reiterate the Cider Press statement that there is an ongoing investigation. Ressing is retiring on July 1, 2008 and has told Patton that he is willing to work with the new attorney.  Dave thanked him for his 35 years of service to the Association.  Patton then announced that he will put together a search committee that will be headed up by the Board vice president, Bob LaPrad, whose term expires this summer.  The committee will consist of all non Board members and it will give updates to the Board about its progress.

During discussion it was brought up that Ressing’s letter had been received over a week ago, but some of the Board members had been unaware of it.  Pullins stated that the Board should discuss what they required of the attorney appointed prior to a sub committee being appointed.  Patton, LaPrad, and Dumaree pushed for the sub committee doing a search prior to Board discussion.  A roll call vote was taken and the motion to appoint a sub committee was defeated.  Those voting against the motion were Dee Zarbaugh, Denny Rawson, Phil Bentz, Amy Gordon, and Kathy Pullins.

Harmer gave the Manager’s Report.  Topics covered were: we presently have 44 full and part time staff; the outdoor pool will open this weekend; a second billing for assessments has gone out; and new front doors for the Club House have been installed.  Our enforcement staff member, Randy, showed some pictures of what he has accomplished with car violations, building violations, and derelict boats at the marina.

Committee Reports

Activities Committee:  Sharon Holmes reported that Friday, July 4, there will be a “cruise in”.  However, most of the holiday activities will take place on July 5^th with the fireworks show at 10PM.  The committee is planning a paddle boat race on August 13^th and a Hog Roast on August 31^st with the AV Cooking School preparing most of the menu items.

Architectural Committee’s Maurice Cea reported on the building in AV and stated that there are now 2464 homes in Apple Valley.

Camper’s Village’s report was given by Leslie Balliet.  She said that they hope to have a full house this weekend.

Old Business

Memorial Wall:   Denny Rawson made a motion for an Apple Valley Memorial Wall at Floral Valley.  During discussion Amy Gordon stated that she was in favor of the Memorial Wall, but would prefer a different site for it.  The Board will decide each year who to honor each year.  A roll call vote was taken.  All but Amy voted in favor of the wall and the motion passed.

AVPOA Emergency Response:  Carl Holmes made a motion proposing that the office be designated as the command center.  Dee added an addendum amendment that AV offer classes to train people to staff the command center.  Denny suggested that there should be designated alternative sites in case the office was destroyed in the emergency.  Jeff did not like the concept of alternative site and thus it was excluded.  A roll call vote was taken and all but Denny voted in favor of the motion.

Bylaw Changes:  McDaniel made a motion to accept the bylaws as printed.  Kathy Pullins expressed concern that all the changes were grouped together for one vote and that the bylaw changes had been sent out before the Board approved them.  McDaniel felt that they had just been waiting for a legal opinion and once that was received the ballots were to be sent out.  Pullins corrected him in that the motion had stated that the legal opinion was to come back to the Board and then the bylaw changes would be approved by the Board.

Denny Rawson stated that he was against the grouping of the changes.  He wanted to vote for two, but was against one and so he was left with no choice but to vote against all the changes.  Dumaree felt that it was too late and that the changes should be voted on.  A roll call vote was taken.  Rawson and Pullins voted against the motion. The motion was passed.

Editor's Note - As previously discussed, we urge you to VOTE NO on the bylaw changes.

Variances:  The Variance Committee consists of Board members Zarbaugh, Holmes, Rawson, and McDaniel.  McDaniel made the motions regarding the variance requests. The railing on a dock variance had already been resolved by the security officer.  A fence variance at the back of a house was approved.  Variance for a two dog kennel was denied and a variance for an outbuilding that did not meet the size requirement was denied.

New Business

Proposed Condo Agreement motion was sponsored by Harmer.  The Board had requested during an Agenda Meeting that Harmer find out the typical usage by the Resort Unit Owners’ Association.  Harmer reported that there are about 137 uses a year and that there were no boats listed as being put in the lake although the Resort owners have passes to do so.  Resort owners will be limited to six guests at a time per unit.  Roll Call vote was taken and all Board members voted in favor of the motion.

Architectural Control Committee rule changes motion was presented by Dee Zarbaugh.  The rule changes were approved and will take effect July 1^st.

Investment Committee member, Phil Bentz presented a motion for investing almost a million dollars with Edward Jones.  The investment would be FDIC insured CD’s of $95,000 each month for the coming nine months.  They would mature as we needed the money for working capital for the Valley.  The motion was approved by the Board.

Property Owners’ Time

Margaret Elliott asked four questions.  The first was “Approximately how much is it going to cost to repair our dam to meet the EPA requirements?”  The second one was“Has the investigation been completed by the county Sheriff’s Department and the Prosecuting Attorney’s Office?  How much was stolen, who took it, and when will that person be prosecuted?” 

The third question was “Several months ago the Board President tabled any discussion about the conflict of interest by Board Director Don McDaniel.  When will it be untabled and a decision made?”  Prior to asking her fourth question Margaret presented Treasurer Phil Bentz with a copy of the UCC filing with First Knox National Bank and told him that if he was really interested in finding out about the loans with First Knox National Bank that he should go into the office and look at our bank statements from this bank.  Then she asked the following “When we gain the information as to who is signing for loans without the authorization of the Board, what action will the Board take regarding the signers?”

Dan Bentley expressed that he was opposed to the grouping of the bylaw revisions and hoped that this would not happen again.

Bob Neuman was surprised to learn that the Resort condos can use our lake and asked how we enforce AV rules with them.

Editor’s Note:  The meeting lasted two and a half hours.  After the meeting, I   heard a property owner say it had been a very long meeting and that maybe the Board needs to meet every month instead of every two months.  I agree.

Steve Elliott, Publisher and Editor

        

Proposed AVPOA Bylaw Changes

Editor's Note - When I received my ballot packet I was surprised to see that the Bylaws Committee and the Board have lumped all the bylaw changes into one ballot.

Each bylaw within itself will affect individual owners differently.  The Removal of Directors and Conflict of Interest will create a climate for easy removal of any Director from the Board.  These and Inspection of Records will further weaken any checks and balances that might now exist for overseeing our finances.  I would recommend that you vote AGAINST the proposed bylaw changes. 

Also, I do not remember seeing in any Board minutes or hearing at any Board meetings that these proposed bylaw changes have been approved by our Board!  Is this another case of the manager making all the decisions?

Steve Elliott, Editor

Proposed Changes are in red:

1.15  “Immediate Family” shall be defined as a person related to another person within the first degree by consanguinity (blood) or affinity (marriage) –spouse, father, mother, son, daughter, father-in-law, mother-in-law, son -in-law, etc. – or household member, as it applies to Bylaws Article 9.10, Conflict of Interest.

9.5 Removal of Directors. A director may be removed by a vote of three-fourths of the Board of Directors present at a Board meeting in which a quorum is present for “just cause”. “Just cause” shall include self-dealing, conflict of interest (as defined in Article 9.10), or negligence in performing the responsibilities of a director, violating any of the provisions or obligations set forth in the Oath of Office or Code of conduct, failing to conduct himself or herself on Association business according to the highest ethical standards, engaging in conduct that creates even the slightest appearance of impropriety, or engaging in any other conduct that the Board determines is not in the best interest of the Association. If a motion to remove a Director is made at a Board meeting, the motion shall not be acted upon until the next Board meeting. Notice of the motion shall be mailed to the Director, whose removal is sought, not less than twenty-one days prior to the meeting when the motion is to be considered.

9.10 Conflict of Interest. All Directors shall endeavor to conduct themselves on Association business according to the highest ethical standards and shall strive to avoid even the slightest appearance of impropriety. In that regard, Directors shall not, either directly or indirectly, derive a personal profit or advantage from their position as Directors, in that the primary obligation of the Director is to the Association and its Members and not to himself or herself.  No contract or business relationship shall be entered into between the Association and a Director or any entity in which her or his family has a significant interest, unless the material facts of the relationship and transaction are disclosed or are made known to the Board and a majority of the disinterested Directors specifically authorize the contract or business relationship.  Directors shall generally abstain from discussing at a meeting, or voting upon, any matter in which they, their immediate family members or any entity in which they have a significant interest, have a personal financial interest in that outcome.  No Director shall solicit personal favors or exert (direct or implied) influence on the General Manager or Association employee in order to gain business or personal favors for himself. The primary obligation of the Director is to the Association and its Members and not to himself or herself.  A conflict of interest exists where Directors (a) either directly or indirectly derive a personal profit or advantage from their position as Directors; (b) either directly or indirectly (through any entity in which the Director or the Director’s family member has a significant interest) enter into a contract or business relationship with the Association, unless the material facts of the relationship and transaction are disclosed and made known to the Board and a majority of the disinterested Directors specifically authorize the contract or business relationship; (c) fail to abstain from discussing at a meeting, or voting upon, any matter in which they, their immediate family members or any entity in which they have an interest, have a personal interest in that outcome; or (d) solicit personal favors or exert (direct or implied) influence on the General Manager or Association employee in order to gain business or personal favors for himself or herself

12.6 Inspection of Records.  The membership register or duplicate membership register list (names only), the books of accounts, and minutes of the proceedings of the Members’ meeting and the Board meeting and the written notes and records of committees, if any, shall be open to inspection upon the written demand of any Voting Member at any reasonable time for a purpose reasonably related to his or her interests as a Member. monthly balance sheets and monthly profit and loss statements, and approved minutes of the proceedings of the Members’ Annual meeting, Board meetings, and committee meetings, shall be open to inspection upon the written demand of any Voting Member at any reasonable time for a purpose reasonably related to his or her interest as a Member.  None of the above will be available to non-members of the Association without Voting Member written approval or Board action.  Voting Members may request and receive copies of any of these items in accordance with procedures and costs established by the Board.  All records available for inspection under this Article 12.6 are confidential and not to be disseminated or shared with any person who is not a member of the Association without the prior written approval of the Board. These records available for inspection shall not include documents relating to employee salary or compensation, legal or personnel issues, minutes of the executive minutes  sessions of the Board, or any other record or document that is not expressly enumerated in the preceding paragraph as open for inspection.  Any Voting Member or Director requesting to inspect information not expressly enumerated in the preceding paragraph must make a request in writing to the Board stating the specific reason for requesting such information , and the information will not be made available for inspection absent express prior written approval from the Board.

17.6 Dogs must be contained within an approved enclosure or tethered at all times and not permitted to run loose at any hour, time.  All pets must be contained within an approved enclosure or tethered when outside:  in no case are they permitted to run loose.  Individuals walking pets must have them on a leash, must walk them only in non-posted areas, and must immediately clean up any pet litter or fecal waste.  Owners must assure that pets are not a nuisance or cause unreasonable disturbance or damage to other property/owners.  Reference Bylaws Article 17.14)

Voting for Board of Directors

Editor’s Note: It looks like there are two good candidates for the Board of Directors:  Arlen Allender and Linda Woggon.  Reread the RAV for past comments on McDaniel and Pirics.

Steve Elliott, Publisher and Editor

        

New Information On Current Problems

EPA - Finally there is new information. On page 18 of the May 2008 Cider Press there is a copy of a letter that Kegler and Brown sent to the EPA.  This letter addresses some of the problems that the RAV has previously stated.   It is regrettable that our dam discharge gates have been neglected and have contributed to the problems and that we have never factored in how our lake affects the environment.  Also what is the overall impact on our lake and surroundings from the heavy metals?  Hopefully there will be further information.  We should be happy that there were no fines levied against the AVPOA.

Dam - No new information. However it seems that the agreement with the EPA will address the main problem and that the DNR will also be checking for follow through by Apple Valley and checking out our compliance with the other problems that were noted.

Missing money - No new information.  The Cider Press addressed this issue on the front page by printing the AVPOA Board statement: “There is an ongoing investigation into a possible mishandling of Association funds.”  I wonder how long the investigation will take and how much money is missing?  Are the Board and management using “time and silence” to their advantage and expecting everyone just to forget about the problem?

Conflict of Interest - Several months ago the Board President tabled any discussion about the conflict of interest by Board director Don McDaniel.  There is real irony here.  Kathy Pullins was dismissed and persecuted for conflict of interest and found innocent by the Courts.  Presently we have a Board that ignores the McDaniels issue, allows McDaniels to run again for the Board, and is supporting the Bylaw Article 9.5 and 9.10 revisions about removal of a Director and Conflict of Interest.  Whose interest is the Board really concerned about and do these Bylaw revisions support those interests?  I see that they will be able to easily remove any Director that wants financial information and keep those Directors that go along with their agenda by just ignoring or tabling those who do show a conflict of interest.  If these bylaw changes pass, I wonder how many hours will pass before they vote Pullins off the Board?

Loan Information - Read the Budget and Finance Committee report.  As you read the committee report keep in mind that the Bylaw Article 12 changes will provide even more suppression of financial information and make our system more vulnerable to misappropriation of funds.

Voting Procedure - To our knowledge there has been no change:  ballots will be returned to the AVPOA office,  Betty Cea will alphabetize and file them, and then the ballots will be transported to an area to be counted at the appropriate time.  In the past I was told by Harmer that they had to do it this way because he did not have a big enough box for the ballots!  Too bad he and the Board did not prioritize a new ballot box project over a $175,000 administration addition.  I have heard conjecture on the part of several property owners that what really happens is that the undeliverable election envelopes are returned to the office and then someone is using these names and ballots to cast votes for their candidates, which would be very easy to do with everything in a file drawer.  I do not know if this is true, but why do we maintain a system that shows vulnerabilities for corruption?

Committee Reports

Budget and Finance Committee (April 30, 2008)   Bob Sichel is Chairman and members are Dick Anderson, Bob Blue, Betty Cea, Moe Cea, Margaret Elliott, Steve Elliott, Judy Fagert, Steve Jenkins, Bob Meldrum, Dick Myers, Jackie Pirics, Kathy Riley, Nellie Robinson, and Angie Ward.

Steve Jenkins read the Committees Mission Statement and suggested in the light of the recent misappropriations that we get a copy of the procedures of present controls and slowly review each one to see that there are adequate checks and balances in place.  If this is not so then the committee would make recommendations to the Board.  The majority of the committee agreed with this but did not feel that it was necessary to put this plan into a motion.

Phil Bentz, AV treasurer, handed out copies of Margaret Elliott’s letter, which had been sent by certified mail to the Board.  The questions posed in this letter about the $250,000 loan are as follows:  where in the Board minutes was approval given for this loan, who signed for the loan, where has the money gone, and where will the Board get the money to repay this loan since it is not in the 2008 budget?  Phil’s letter to Margaret stated that he had contacted First Knox National Bank and the Commercial Loan supervisor said that they could find no loan of that number or for $250,000 to AVPOA.  Margaret was asked where she had gotten the information and she stated that it was in AVPOA bank statements.  She further stated that she was not satisfied with the Board’s answer and that she would continue to pursue the matter.           

Editor’s Note:  I did a quick check of the UCC filings at the Ohio Secretary of State’s website and learned that the UCC in question had been terminated on 3/31/08.  The $250,000 loan was discussed in Budget and Finance on March 26, 2008 and by March 31^st it is terminated. Was this only a coincidence?  The contact person’s address on the UCC was ddove@firstknox.com.  There was no $250,000 repayment to the bank in the March ’08 financial statement.

Property Committee (May 5, 2008)   Bob Blue is Chairman and members are Ed Arnold, Julie Arnold, Betty Cea, Mary Cornett, Liz Dumaree, Margaret Elliott, Steve Elliott, Judy Fagert, Chris Gustafson, Sharon Harper, Sharon Holmes, Jim Jennessee, Fran Kovach, Vince Marcellino, Kay Myers, Paul Pfleger, Eleanor Remen, Bob Remen, Lorraine Stanson, Don Ward, Carol Webb, D.J. Young,  and Marie Zangmeister.  

There was nothing accomplished in this meeting.  Chairman Blue and Vice Chair Zangmeister did not want the Secretary’s minutes to be approved.  They wanted the part about instructions from the manager and no member is required to do inspections to be removed. Blue stated that even though the minutes had accurately quoted him he had actually meant something else and proceeded at length to explain what he meant to say. A committee member pointed out that while Blue’s explanation was all well and good the words in the minutes are actually what he said. The Committee refused to “sanitize” the minutes and the minutes were approved as read.

Lake Committee (May 5, 2008) Bob Mclauglin is Chairman and members are Bob Blue, Curt Campbell, Maurice Cea, Margaret Elliott, Steve Elliott, Judy Fagert, Bill Gordon, Roy Landskroner, Bob Neumann, Jackie Pirics, Sally Slonaker, John Sutherland, Carol Webb, and Don Zarbaugh.   Carl Holmes is AVPOA Board liaison. 

In new business Sally Slonaker reported that there were 57 boats in the recent event and that 128 people attended the potluck dinner.  Bob McLaughlin reported that he received a call that Cove 3 has less water now than before the draw down.

Steve Elliott, Publisher and Editor

        

HOA bill proposals

All meetings of the board or committees must be open to all members

At least 10 days notice of meetings must be sent to all owners

Proposed rule changes must be included with meeting notices and posted in a common area

Members have a right to see all HOA records such as plans, budgets, expenses, minutes

By Zane Wilson and Jessica Foster - zwilson@thesunnews.com jfoster@thesunnews.com

Condominium owners would have clear rights to see homeowner association records and be notified of proposed rule changes under a bill that could come up for hearings in the Senate later this month.

The existing homeowners association - or HOA - law is vague, and some boards have declined to make meeting minutes and account books available to members.

But what has galled residents more are rules that seem to appear without warning, such as what colors of Christmas lights can be displayed.

"I think it's something that will address a lot of people's issues down here," said Sen. Ray Cleary, R-Murrells Inlet, one of the bill's sponsors.

There's no hope this late in the legislative session to get the bill passed, but the intent is to get it rolling, hold some hearings and build a consensus on the wording, Cleary said.

"It's to throw things out there and get it started," he said.

Cleary said he gets at least one complaint a month about HOAs, and that several senators had been talking about revising the law for condominiums because of the unrest.

Some HOAs are "being allowed to just run roughshod" over owners, Cleary said.

Sen. Glenn McConnell, R-Charleston, also a sponsor, said the complaints are not limited to Horry and Georgetown counties, and the complaints are why the bill was drafted.

The existing law isn't clear to some people, McConnell said. Even though HOA records should be available for any member to look at during reasonable office hours, many people say they have been refused.

"They're members; they got a right to see the records," he said.

Chad Caros, who lives in New York and owns a home in Carolina Forest's BelleGrove subdivision, supports a change in the law but wonders whether it goes far enough.

He said he can't make it to many of the homeowners association meetings, and he's had trouble getting minutes and financial records.

He wants to know what a recent 20 percent increase in his monthly dues is going.

The only recourse a homeowner now has against an association is filing a lawsuit, which is expensive and time-consuming, he said.

"Any new bill would be fine and great; but at the end of the day, is it going to hold the associations responsible for their actions?"

"It's an accountability bill," McConnell said.

The bill places HOA operations under the state Department of Consumer Affairs.

Owners could complain to the agency if they were denied access to meeting minutes or other records, and a violator could be fined $500.

Further appeals of rulings from the agency would be to the Administrative Law Court.

Ted Prehodka, a homeowner in Blackmoor in Murrells Inlet, said getting budgets and minutes isn't a problem in his neighborhood.

A former homeowners association president himself, he's miffed at the amount of control the groups have over residents. He said they can dictate what goes in his front yard or how long an RV can be parked at his house.

"What is terrible is people want to tell you how to live your life within the community," he said. "I don't think we should have mini-governments making up their own rules."

He thinks the state should come up with universal bylaws for all homeowners associations.

The bill would require the HOA to send out proposed rule changes at least 10 days before a board meeting, and posted in a common area at least 48 hours before the meeting.

Changes to the governing documents must have approval of two-thirds of the membership, either in person or by proxy.

The Senate is debating the state budget this week, but it's possible the bill could be scheduled for a preliminary subcommittee hearing in the following week or two, Cleary said.Contact ZANE WILSON at 357-9188.

        

"The people who cast the votes decide nothing.  The people who count the vote decide everything."

Joseph Stalin -  A quote sent by a RAV reader.

Legal Update

Our first brief was filed by our attorney in the derivatives action appeal.  It can be read in pdf format here.

You will notice from the brief that we have one attorney, while the AVPOA now has five attorneys working on this matter, all being paid with our funds!

New Information On Current Problems

EPA -  No new information available to property owners.

DNR -  No new information available to property owners.

Dam - In Lake Committee Carl Holmes stated that there are some problems with the dam that need correcting.

$18,000 Missing AVPOA Money - No new information available to property owners.

Loan from First Knox for $250,000   No new information available to property owners.

Editor’s Note:  We can only hope that the AV Board of Directors have sought out information on the above and that they are not leaving these situations totally to Harmer’s discretion.  I am sure that the property owners will promptly be notified if extra money is needed…….

Committee Reports 

Property Committee (April 7, 2008)   Bob Blue is Chairman and members are Ed Arnold, Julie Arnold, Betty Cea, Mary Cornett, Liz Dumaree, Margaret Elliott, Steve Elliott, Judy Fagert, Chris Gustafson, Sharon Harper, Sharon Holmes, Jim Jennessee, Fran Kovach, Vince Marcellino, Kay Myers, Paul Pfleger, Eleanor Remen, Bob Remen, Lorraine Stanson, Don Ward, Carol Webb, D.J. Young,  and Marie Zangmeister. Amy

Gordon is the AVPOA Board liaison. Board member Dee Zarbaugh also attended.

General business was discussed.  The committee members were instructed as to how Harmer expected the inspection forms to be completed. The committee adjourned early so that they could inspect the maintenance building.

Editor’s Note:  It seems that the committees are losing ground as far as input as to what happens at AV.  At one time Properties Committee would have been shown the architectural drawings for the administration building addition.  If a problem was seen by the committee then modifications would be made.  Now that is no longer done. 

Maybe that is why the new office is so property owner unfriendly, walled off with a service window.  I can just envision lines forming…It gives me a nostalgic feeling for the old office’s open counter and benches where you could sit if the staff was already busy with other owners. 

Lake Committee (April 7, 2008) Bob McLaughlin is Chairman and members are Bob Blue, Curt Campbell, Maurice Cea, Margaret Elliott, Steve Elliott, Judy Fagert, Bill Gordon, Roy Landskroner, Bob Neumann, Jackie Pirics, Sally Slonaker, John Sutherland, Carol Webb, and Don Zarbaugh.   Carl Holmes is AVPOA Board liaison. 

Bob McLaughlin was nominated as chair for next year.  Water testing starts in May and on April 23^rd Bill Lynch is coming to show how to use the expanded water testing kit. Committee members wanting to attend should let Bob Neuman know.  A motion was made and passed to support the Properties Committee, if and when, it proposes a jetty to protect the Davis Beach swim area from boats and placement of docks in that cove.  The road going down to the cove will be black topped this fall or winter.

The Lake Committee has no information on the status of the EPA, DNR, or dam problems.  The Lake Committee’s mission statement is: the Lake Committee makes recommendations to the Board of Directors on matters of safety, maintenance, and preservation of the quality of Apple Valley Lake.

There was some discussion about non members using the AV facilities.  It was recommended that members call the office if they see this happening and leave a message.  This line is monitored twenty four hours a day.

Editor’s Note:  Since the committee is limited on information about the current problems with the EPA, DNR, and dam one can only assume that the Board is accepting input only from Harmer.  Hopefully they are getting copies of the correspondence about these situations since in the ultimate end it is the Board and the owners’ that are held responsible.

Steve Elliott, Publisher
Reform Apple Valley Ltd
www.reformapplevalley.com