New "deal" with RCSD

The HOA entered into a new deal with the Richland County Sheriff's Department for what they expect will be increased services.

It comes with a very heavy potential cost. The Agreement contains a Liability clause that is very disadvantageous to the HOA and 2,480 homeowners.

Aside from the fact that the Board never formally authorized anyone to re-negotiate the Special Duty Agreement, the Board also never authorized anyone to execute the Agreement. Vernell signed it, but Justin didn't.

Before tonight's board meeting I wrote to the Safety Committee Chairman, with copies to the board, the HOA's attorney, and members of the Safety and Contracts Committees. Here is my message:

Good afternoon, Dennis,

At tonight's board meeting will you please apprise the Board of the enormous risk and unlimited financial exposure the HOA faces in the Special Duty Agreement with the Richland County Sheriff's Department that became effective on February 1, 2023?

I strongly urge the board to obtain a written legal opinion from the HOA attorney. I suggest that no request for duty hours be made until the attorney advises the HOA.

The Agreement may not even be in effect. The copy provided to me by RCSD does not contain Justin's signature or that of the Board Secretary, and nothing in the Minutes authorizes anyone (Justin, Vernell, Greg or you) to negotiate the new Agreement or to execute it.

I would be happy to meet with the Safety Committee and the Board for a thorough analysis of the Agreement.

Sincerely,

Gus Philpott

As of happens, Treasurer Vernell Butler quickly replied to me. He wrote, "Summit business,  none of your concern. Know that of which you speak. SMH... If you actually knew what you were speaking on you might understand better. "

Vernell's signature is on the Agreement, but not Justin's or Greg Thomas' (Board Secretary). As Treasurer, Vernell should be mindful of financial risk to the HOA.

The Agreement exposes the HOA to unknown and unlimited financial liability and contains a hold-harmless clause that favors RCSD.

Could those expose the 2,480 homeowners to assessment to satisfy a claim that exceeded insurance benefits and ALL of the HOA's Operating Cash ($842,026) and Reserves ($1,141,008)?

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