Are the Board’s Priorities Askew?

Here is our Beach Club building that many of us have enjoyed using over the years.  However, it lacks what can be considered for some, as vital for its complete use to all – a workable lift/elevator.  It’s currently out of service, and it has been out of service for years and years, with the caveat, “Temporarily” out of order.  Really? Do you think there may be some Residents that require the lift/elevator to take advantage of the whole building, an amenity for which all the Residents pay.  The word has been “excuses” that it needs to be inspected, it needs to be reworked, and it could cost thousands to get it operational.  The proverbial can has consistently been kicked down the road. Oh yes, “Temporarily” out of order, but for years and years?

To completely take advantage of the building’s benefits, that by the way, includes gatherings, parties, meetings, etc., wouldn’t you believe that items would be required to be hauled to the second level?  More importantly, there are folks with disabilities, who will find themselves unable to reach the second floor, which is the essence of the building where folks congregate.  I know of a particular incident, where a person’s fellow colleague had passed, and a celebration of life was occurring on the second floor of the Beach Club building.  This person was in a wheel chair, and had to be carried up the stairs to pay respects to the colleague.  Hmm.

The sad contrast to this situation with the Beach Clubhouse is how the Board has pushed and pushed the Residents with the expansion of the Brassie Grille, where an $75,000 assessment was levied on the Residents and an alleged $300,000 in unsecured loans was taken upon. Unsecured loans can have a Promissory Note to pay back the loan, and you can take the debtor to court to be repaid if it’s delinquent. Are the $300,000 in loans attached to promissory notes? Regardless, I’m sure these loans are on the backs of the Residents to repay. Written details to see the loans requirements are lacking for the residents to see.  Hmm.

The Board, being in the restaurant business, is obviously overjoyed that it crafted a way to expand its pleasure palace, i.e. the Brassie Grille, and expand and embellish its house of joy, all again, on the backs of ALL the Residents. Choices made where expected practicality would prevail, e.g. the lift/elevator, perishes in neglect for the priority choice of the Brassie Grille.

Further irony, is the fact that the Brassie Grille is a money loser, terribly managed or managed with an intention to ignore breaking even or actually making a profit. For example, the cost of goods sold, i.e. food and beverage, actually the Brassie Grille, which has dramatically increased because of our current inflationary environment, has driven the Brassie Grille’s Profit and Loss to 10’s of thousands in losses, we have been told at a Board Meeting.  But wait, when the cost of goods sold increases, don’t you increase the price to the customer? Apparently not at the Brassie Grille.  Why? Because you have a Resident base to subsidize the cost increase.  Further, we have an AGI business that is financially failing, yet the expansion plans continue, assessments are levied and loans issued.  The expansion/ upgrade expected total price currently is $700,000.

It’s obvious that Board priorities are to cater to the social and partying base segment in our community rather than to the immediate needs that serve the whole community.

It would be great if the Board’s focus followed the working and mechanic needs of the Aquarina Community, and not the partying and entertaining demands of a selfish segment that apparently has again infiltrated a Board, where the fiduciary duty for the well being of the Residents has certainly been put aside as a secondary concern.

So sad.

Is There a Heads in the Sand Mentality?

Regardless of what was said at the Brassie Grille Symposium, where the Residents were invited to speak and offer opinions for 3 minutes per person, the mere suggestion to move forward or not on a renovation of the Brassie Grille is a Board action that should be put off until a more stable economic and political landscape appear on the horizon.  Simply put, inflation is running rampant with no reasonable policy to stop it, other than the current Fed policies that are fueling it.  Construction materials are sky high in cost, labor rates and general construction costs continue to climb. Is this the time to spend on a discretionary amenity, i.e. The Brassie Grille? Does the partying portion of the Residents and the Board have their heads in the sand ignoring the current economic and political landscape? Is the need for enjoyment trumping the coming economic downward spiral? Will this cost improve the general appearance and value of Aquarina, rather than addressing its pressing needs, e.g. tired and worn roads and entrance, infrastructure maintenance, and building our Reserves?  When a potential buyer or visitor comes into Aquarina, what will they first see, a subsidized food source (The Brassie Grille), or a well manicured and maintained community? In our case, they will see a tired and neglected infrastructure, which sullies the community, and our Reserves are spent like Monopoly Money.  After all, the Board’s selfish decisions are creating costs on all Residents, rather than these costs just being personally taken on by the decision makers, i.e. the Board, and its followers.

This Blog has made multiple suggestions how to fine tune The Brassie Grille in a manner that is cost effective, and which will provide the basic food and beverage needs that may be required by the Community.  If the folks in Aquarina that crave group partying and eating together (which is understood in a healthy community), then go gather to one of our Club Houses, where cover dishes and refreshments can be brought by the party-goers. Should it be a Resident subsidized restaurant?  Why place this cost on all the Residents?

Do you want a Board that has the fiduciary duty to maintain our community and oversee our funds to be applied to the community’s maintenance and infrastructure needs, or do you want a Board who apparently wants to be in the restaurant business, where its time is spent with food, beverage, and employee oversight.  It could be expected that there would be full community support if The Brassie Grille functioned as a profit center or even a breakeven operation.  However, the Residents are prohibited from seeing the books, e.g. Journal Entries, which would show itemized expenses and itemized income. But wait!  Aren’t the Residents’ funds, that feed The Brassie Grille if its income is insufficient or even non-existent, thus spent to keep The Brassie Grille running?  Is there a specific line item in the Aquarina Budget to show an amount allotted to the Brassie Grille, or is it buried in the general AGI Budget?  Hmm.

Have our new Board members, who had touted themselves for financial transparency, now absorbed and apostatized by past Board members?  Unfortunately, Florida HOA Boards have more latitude with Resident funds than you could imagine, but they have, by Florida Statute, an obligation to show the Residents how each penny is spent.  Do we have that occurring in Aquarina?  What we do have is a past and maybe new Board that has spent the Residents’ funds to hire attorneys to prevent Residents who may want to see specific financial records of the  AGI and the Community.

As past ways have shown, and what may still be continuing in the present climate, is that this HOA Board beseeches the Residents’ input, but in the end, history shows it does what it wants with its spending priorities, which is to cuddle the cadre that places pleasure and fun over the reality of Aquarina’s immediate needs.

I have spent decades living, owning, and selling and buying for clients in communities like Aquarina that have a “resort” flare.  All these communities had excellent presentation with a focus on appearance and a working and maintained infrastructure, including well kept amenities. It was ensured that all assets of these communities were equally addressed, where one or more assets were not neglected for other assets.  In addition, a full time and visible maintenance staff were onsite daily, working and tending to these communities.  What should Aquarina’s priority be – a salaried, daily, and onsite Aquarina maintenance staff, or a Resident paid salaried restaurant staff?  Wouldn’t it be better if the Board could balance both equally for the whole community within a Budget creating no assessments?

There may be the admonishment of  ”If you don’t like it here, then leave.”  However, after being here since 1995, it certainly shows my appreciation of Aquarina, and I feel there are other folks, like me, with the same perspective that  I have been preaching with this Blog.  Leaving is an easy remedy, but to share my belief, that there should be more prudent financial oversight and a balanced approach to spending, and vision for the “whole” Aquarina community, is a policy worth heralding to, over these past years, thousands of this Blog’s readers.

Pandering the Residents and Resurrecting Past Ways

With the initial guise of boasting how the community needs would be addressed, the new Board unleashed a recent newsletter explaining its direction, which was mostly listing all the fun-fun activities on its agenda that would be made available, and a closing blurb on how the costs applied to the roads and entrance would be looked at. A further newsletter announced the presentation to the Residents at a soon Board Meeting of the Board voted upon The Brassie Grille renovation. I would think roads, gates, and entrance would be the priority matter to address within the Aquarina Community, but NO. The entertainment foundation (i.e. The Brassie Grille)for those with a fun, fun, fun focus, is the Board’s priority.

Is the Board running a cruise ship or overseeing the maintenance and security of a community, which should be the real focus of the Board.

It’s apparent too, that the Board insists on being in the restaurant business, as exemplified by the hiring of a chef/food and beverage director for The Brassie Grille; all overseen by the AGI. many questions arise with this new hire. Let’s see:

  • Who determines the Brassie Grille budget, the new hire?
  • Or is there a budget, since the Residents’ funds feed the expenses of this entity, (The Brassie Grille), when the entity’s funds are short to pay for its expenses?
  • If there is a budget, who decides its makeup? The Board with its chest of resident funds, or the new hire. If the new hire, then was he promised that overage expenses would be covered, or was he made responsible for his budget.
  • Who hires the staff, the new hire?
  • Who decides what the Brassie Grille staff is paid, the new hire?
  • Who decides on any employee benefits, the hire?
  • Who decides on the menu, the new hire?
  • Who decides on the days and hours of operation, the new hire?
  • Is there a contract for the new hire spelling out the responsibilities of the new hire?

If the new hire is free from the above responsibilities, then certainly the Board has decided to be in the restaurant business with the Residents’ cash cow of funds to pay and carry the Brassie Grille through its expenses, regardless if it can support itself or not. Unfortunately, the Residents will never know, since the financial books are not open to the Community. Remember, the Board spent our funds to hire attorneys to prevent the Residents from having access to the financial data on the AGI. They’re playing with our funds. I’d like to see their Quick Books or whatever program they use on the AGI. But NO. Hmm.

There are certainly many more questions and concerns, but there are no answers because the the Board’s financial transparency of how our funds are spent is not provided. Again, The Brassie Grille is the center and foundation of the Board’s social programs for the community. The social programs entertain a segment of the Aquarina Community, not the whole Community, yet its cost is on the whole Community, while Aquarina’ tired infrastructure needs are continually kicked down the road.

BTW -Do we know the salary of the new hire?

If the Board insists on being in the restaurant business, then a cost effective approach would be to hire a manager/bar tender for the alcohol sales. Snacks could be made available, and and a refrigerated glass food pantry could be put in place, for storing sandwiches, and maybe frozen pizzas or dinners to buy.

Is this Board in the entertainment and restaurant businesses or should its priority be the responsibility for overseeing the workings of our community, e.i. maintenance of its infrastructure and providing a safe environment for its Residents?

Oh yes, the food trucks and the farmers’ market is a positive addition, but it’s a distraction to what is really needed.

MUCH MORE TO COME.

Will the Board’s Budget Address Its Stated Priorities?

This Blog applauds and salutes the current Board with what we, the Aquarina Community, have heard with its declared actions that are hoped to actually occur, i.e. the Brassie Grille expansion will be shelved for a re-evaluation, food trucks have been invited to the Brassie Grille parking lot for a period of time, and that the roadways of and the entrance to Aquarina will be priority items on which the Board will take action.  However, the question becomes – Will the Board take action on these needs in its budgeting or is this just noise and happy talk, and not signal and performance?  Aquarina requires the latter choice, i.e. signal and performance.

The food truck idea is a great and fun way to gather the community, and even better, it would be a revenue stream if a small fee was charged for the truck spaces in the parking lot.  This approach could be further applied to the Brassie Grille, where a restaurateur could be found to rent the Brassie Grille premises.  The Board could concentrate less on the restaurant business, e.g. employees, food ordering, etc., and more on the Aquarina Community.  Further, rent would be paid and our Reserves would not be spent on carrying the expenses of a restaurant, but be bolstered by rent revenue.  

Other than maintaining the infrastructure and the maintenance of the community, one of the single most important features that enhances a community like ours is its entrance and roadways. Aquarina’s entrance and roadways are tired, and in need of repair and upgrading.  It’s almost 40 years old and looks it; it needs to be addressed asap, even if it is in stages.  I have clients who question Aquarina’s appearance of its entrance and roadways, and ask why are they in such disrepair?  It can be a negative reflection and reaction on the status of the community, e.g. are there financial issues, are the Board of Directors irresponsible in how the Residents’ funds are spent? Folks coming into Aquarina now, who are paying big numbers for purchased homes, expect a better community presentation than what currently exists.  An uplifting of the roadways and entrance will add value to all the Residents’ properties.

The current Board, voted in by the Residents, has shown flashes, at this juncture, of a better path for Aquarina than the path of the previous Board, where Aquarina as a whole had been selfishly handicapped by a dictatorial few.  Democracy may have spoken in the election of the new Board Directors. It’s time for a change for the betterment of the whole community. What we see below must be addressed and go away. It’s way overdue.

May the Board be Seeing the Light?

A recent Board email to the Residents revealed the results of an Aquarina survey showing what priorities should be addressed in the community. Though the response was just under 40% of unit owners, a reaching out to the Residents for their input should be applauded. The interpretation of the completed survey, e.g. the priorities’ rankings, was skewed a bit with apparent boasting acknowledgement for past Board behaviors with its lavish one sided and not whole community based spending. However, was the buried lead that the Aquarina entrance and gating are now the priority? This Blog has been an advocate for the updating of the entrance and gating for years. May reason and “whole” community concerns now be the new Board’s focus?

More to come . . .

In What Direction Will The New Board Head?

It appears that a new Board President has been decided upon after the Organizational Meeting that followed the Board of Directors’ election. It seems that an existing Board Member was elected to be Board President. The newly elected President had previously offered an email before the election, which stated that the email could be shared with the community.  Let’s take a look some of what this email stated.  Our response is in red.

 Regarding the candidates below please be aware that one has sued us (Parrish) and one openly expressed repeatedly that he wanted to take legal action against us (Whidden). This information is not my opinion, it is public record.

It’s apparent in the community that these two individuals, which the email targets, must have strong opinions on some matters.  It’s also known that the Board practiced a lack of transparency with its finances, and enlisted attorneys who would support its position of none disclosure. The Board triggered the lawsuit and the suggestion of legal action.  It refused to open its financial documentation of spending to the Residents, which should be public records to the Community.  Why was this background information not included in the email?

Anyone who uses legal action against us as a way to deal with our Aquarina matters, challenges and conflicts is suing and hurting us all, you, me, themselves, all of us. Legal counsel costs impact the budget significantly. Lawyers can always argue both sides of any matters and it’s easy to throw claims around without actual proof. 

See above.  Why would a Board, whose fiduciary responsibility is to use the Residents’ funds with full disclosure, withhold information on these funds showing how these funds are spent?  This refusal to open the financial books only creates an assumption of spending abuse.  What we have is a situation where the Residents’ funds, ironically, are being spent to defend a Board from not complying with Florida Statutes. How selfish and non-fiduciary is that! The author’s email certainly supports the Board’s position without looking at both sides of the disagreement.

Therefore, I cannot support any candidate who has a mindset for legal action as it’s almost never in the best interest of the greater good.

Is the “the greater good” the non-disclosure of financial records to the Residents, without whom there would be no financial data?  It’s the Residents funds, which the data reports. Is it that only the Board, which spends funds of the Residents, has the sole access to the records of its spending?  Hmm.

Even with no legal standing, or if the claim  in not taken forward, suits cause financial losses, divisions and acrimony throughout a community as people become confused and angry in taking sides.

The sentence is not clear; however, the statement of “Even with no legal standing” is wrong and prejudicial. The author has shown a bias with no compassion for a community that seeks to see how their funds are spent.  Notice that no explanation is given on why the financial records are being kept away from public view.  As a reminder – the author is now the Board President.  Hmm. 

Nobody wins in the end and insurance rates can be impacted. Yes there will always be differences of opinions and that’s ok but working through our differences in a civil manner is what we’re challenged to do so again, I encourage you to vote thoughtfully. 

The author’s talking points here are the ones we’ve heard from the past two Board Presidents (the second one being an apostle and acolyte of the first one), which tells us that this President is yet another apostle and acolyte of the first one too.  Remember this is all spin, i.e. working through our “differences” is noise and not fact.  The Board has continued to do what it wants without regard to a whole community approach. Building reserves for future replacement and restoration, and current needed repairs, has given way to funding self-indulgent Betterments for the segment that has controlled the Board.

Vote for the candidates that you know will represent you and Aquarina, the community we all live in, best and for those who are willing to do the hard work of negotiating and finding compromises instead jumping in last minute in anger with threats and false accusations.

There has been no “finding of compromises”, only a refusal to address the questioning of the Board’s actions by inquiring Residents.  This refusal forced the Residents to seek legal counsel.

Talk to the candidates if you don’t know them. Who has demonstrated they have all of Aquarina in their best interests?  Are they role models? Do they respect all of the differences in the what our community has to offer, the ocean, golf, tennis, various events, a gym, a restaurant, bingo, card games, etc or they only favoring what they are personally interested in. I will never play tennis but I respect those who do and I’m glad for the amenity as it brings diversity of activity and people to Aquarina. It all adds value to our community. From my view point anyone willing to take legal action isn’t a person who will serve the community in the long run and doesn’t deserve your vote.  

This whole paragraph is noise and not signal; it is a political rant that has no truth of the facts, i.e. there are Residents who are more concerned about the infrastructure, finances, and presentation of their community than the fun items that have been itemized above.

Please fill free to share this email with whomever you chose. As an ACSA board member who is not running and only has one more year to serve I feel very passionate about this upcoming election and the impact it will have on all on our futures. Don’t vote for anger, discord, and narrow thinking. Serving on either board is a lot of hard work, and it involves respecting and honoring ALL people if you’re going to serve well. It should be a privilege to serve others that’s earned. Serving on the board not only requires dealing with the challenges of today but also planing for Aquarina’s future. Open our future up by voting for those who want to see Aquarina not just survive but thrive. 

The bold face ending sentence tells you everything you need to know about our new President. The Board’s primary responsibility is not to see Aquarina “thrive”.  The Board’s primary responsibility is to see Aquarina more than “survive”, but to be maintained in its original intention and presentation to its Residents without examples of neglect, i.e. with its roadways, entrance, signage, lighting, irrigation, Beach Club House upkeep, and its irresponsible spending for indulgent betterments, etc.

Though difficult, It’s been an honor and privilege to serve you and all of Aquarina these past three years. Thank you. 

Respectfully,

Darlene Vrotsos

VP ACSA

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The bottom line is simple.  Will the new Board members speak up with reason to the irresponsible spending on betterments, the continued neglect of our infrastructure maintenance, and the non-priority of our reserve funds?  Or will these new Board members be cajoled and invited into the segment of folks the past Boards have manipulated into its apostles and acolytes? Hopefully, these new Board members will see their fiduciary responsibility to the Residents funds, and demonstrate a vigilant maintaining of the community we currently have, and not a community of what we could be, since what we could be is up to the Residents, and not the Board.

Stay tuned.