So Much to Say . . .
Do you remember the tale of the Trojan Horse? All appeared good and the citizens of the city allowed the Trojan horse to enter. Unknown to the populace was that the horse contained an enemy to the city who opened the city’s gates resulting in the city’s ultimate destruction.
Aquarina folks appear to be having fun with Brassie parties, bingo, Beach Clubhouse events, golf and tennis outings, volunteer work, etc., which are all good for the community. Right? Sure.
However, it seems those that foster these good times for those that participate have an agenda that may or may not be noticed by many of these happy and content participants. The agenda, a Board of Directors’ agenda, is to take control of the residents’ funds and spend these funds per the Board’s whim. It seems that the Board believes that it is in control of the Aquarina Community, and that it is the one who will decide (not the residents) what stays, what goes, what changes, and what is added. Aquarina was never intended to be run with a CEO mentality. Aquarina is a democratic and not an autocratic community where the residents have By-Laws and CC&R’s which provide a process for spending and change.
Does the Board sense a mandate for its spending, as a result of its socialization with some of the residents, some of whom may be the Board’s acolytes and apostles who agree with the Board’s agenda for the community? Has this perception of a community mandate blinded the Board to the democratic process our documents layout for the residents to decide to spend significant amounts or not? After all, the Board has annual resident fee revenues of nearly $1,500,000 of our funds to spend. Right? WRONG!
AGI
As we all know, Aquarina Golf, Inc. is comprised of three business that ACSA oversees. The residents pay a huge sum well over $200,000 annually to support and hold up these entities. In addition, rent and insurance for these entities is also paid with our funds. The Board has total discretion how these businesses are run, i.e. hiring, salaries, developing a business model for their operation, inventory control, etc.
You may be told that these businesses are making a profit, but are they? When you see the total listed revenues for them, did you know that our budgeted funds to support them are recognized as part of that revenue? REALLY? Yes.
Some have asked to see the books for these businesses of the AGI, since a Florida Statute states that the residents have a right to see all the revenue and expense items of their Association, i.e. the ACSA and AGI (an ACSA subsidiary). The Board refuses to share this information. Why? Is there something to hide? The residents provide a significant subsidy to these businesses, and they are not permitted to see how their funds are spent? Really? Would you want to know in the total annual revenue of these businesses, what is business earned and what part is the residents’ subsidy? Is there any incentive to run a profitable business when you have an annual $200,000 plus subsidy available to use at your discretion?
With a resident subsidy for these businesses and the detailed financials kept hidden from the residents, may there be the temptation to run these businesses not for profit, but as a tool to support and drive an agenda? Hmm.
POSSIBLE SOLUTION
The most cost effective way to maximize these AGI businesses is to rent out and run the restaurant to a restaurateur with an arms’ length relationship, place a management company to run the golf course, and have a tennis pro or tennis management company rent out and run the tennis facility. By keeping the Board out of the businesses, the temptation to misuse the businesses for self-interest is mitigated and a steady cash flow from the businesses is attained, e.g. rent paid to the ACSA, without the risk to the community of running these businesses.
AQUARINA AUDIT
- When you have an audit, as the ACSA is required by Florida Statute, the most telling part of the audit is in the Notes. Read them. The AGI businesses show revenues, which include the residents’ enormous subsidy, and expenses, but the expenses are not totally itemized. Could the amount shown for total expenses far surpass what the businesses actually earned without the subsidy?
- The audit states that the Association, in a January 2017 Board Meeting approved and levied a $398,000 special assessment. WRONG! The Board of Directors voted for the special assessment, except for one member whose reasons for a NO vote were never included in the Board Minutes or posted on the Aquarina Website. The HOA documents are very specific and clear about an Association and a Board of Directors. They are separate bodies.
- Remember that in an audit the CPA relies on information provided by the Board. This Board does not have a dependable track record following By-Laws and CC&R’s of its HOA. What may have they told the CPA?
THE ADMIN BUILDING AND THE MAINTENANCE YARD
These two items have been discussed before. It needs to be emphasized that the change or taking away of a common element is a community decision, and not a Board decision. It is also important to know the when certain costs are reached for common element repairs, the community and not the Board decide what the cost will be, and if the cost will be spent or not. The current Board of Directors do not follow the Aquarina By-Laws and CC&R’s when the residents’ funds are spent. They decide on what to spend and how much to spend, and avoid providing the residents their legal right to vote on these matters.
Keep in mind the water well for the golf course is to be discussed at next week’s Meeting. Because of the cost amount and the fact that it is a new common element to maintain, the residents have a legal right to vote to do the well or not. Further, the community should be apprised and shown the data that supports the decision to have a well or not long before a vote.
Another matter is how the Admin Building and the Maintenance Yard were handled by the Board. It was disclosed here how the Permit for the Admin Building was fumbled (working without a Permit) and how it was applied for the pretense of storm repair, as was the Maintenance Yard for storm repair. Storm repair is an insurance casualty, and our documents are clear that the residents vote when the repair costs meet and exceed a certain threshold over the insurance payout, which they did. Did you vote on the Admin Building and Maintenance Yard repairs? Both these repair expenditures are not just for storm repairs as was presented with the Permit Application, the expenditures have turned out to be for complete renovations at a much larger expense than was presented. Your funds were spent without a community vote.
In addition, the moving of the workout room (a common element) needs resident approval by a vote since it is changing a common element. The Admin Building, also a common element, is being changed without a community vote.
Do you see a pattern?
Folks, your money has been spent in a non-disclosed manner, it has been spent without your input, and it has been spent without your say to spend or not. The Trojan Horse has been let into the community, and some of you are apparently content and even happy, but there is also a contingent in the community who agree that how the Board is behaving is wrong. Yet, the spending continues behind our backs, bypassing the voting process, which apparently has been taken from us.
