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.The AVPOA 2008 annual meeting
was held Saturday, June 21st at
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
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
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
AVPOA Board of Directors
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
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.
Enclosures:
Ten
packets of OCC Customer Complaint Form
Letter from the Comptroller of the Currency
Office re Case #785658
Letter from attorney
Steve Elliott, Editor and 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
“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.
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
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?”
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.
Proposed Changes are in red:
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)
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
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.
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.
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
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
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.
Bob McLaughlin was nominated as chair for next year. Water testing starts in May and on April 23rd 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
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