What Will Indigo Lake Dam Repair Cost?

WARNING

Landscaping expenditures have basically been paused in The Summit, while the Board waits to find out how much the repairs for the Indigo Lake Dam will cost. 

The diagnosis of the full problem and the estimated cost of total repairs has taken months, if not more than a year. Preliminary estimates may be in the range of $100,-$300,000. (You can't see the Reserve totals, because the HOA is no longer publishing monthly Financial Operating Results on its website.)

The Board has acknowledged that a complete Reserve Study has never been done. This Board bears the brunt of blame, when the blame belongs across many years to past Boards. 

Why haven't Treasurers been waving a big, red flag?

Why haven't Finance Committees been kicking up a storm?

Read this paragraph from the Procedures Reference Manual, popularly known as the PRM, which has been ignored by Boards for years. One of the Standing Committees of the HOA is (supposed to be) the Asset Evaluation Committee, which is described in Art. II, §B, ¶11. 

Asset Evaluation Committee. Is responsible for establishing and maintaining an inventory of all commonly owned components for which a reserve should be maintained. It will provide an estimate of the remaining useful life and current replacement cost of each item, as well as an analysis of the current funding status of the Reserves and will recommend a funding plan for future annual contributions to the Reserve Fund. The analysis is to cover all common site improvements, ... This committee will be responsible for maintaining the Summit Replacement Reserve Plan.

The problem? Boards have ignored this Standing Committee. Members (homeowners) will pay the price now. 

How many Treasurers have there been in the past six years? George Reynolds (deceased); Paul Hill (deceased); Vernell Butler; Linda Potter; LaToya Adams; William Hill; Linda Potter. 

How many of them knew anything about being a Treasurer of a non-profit corporation? 

Volunteer homeowners must be supported by a competent, knowledgeable, experienced, qualified Property Manager! They weren't. Plus there was no accountant for the Association.

Is the current Board supported by a competent, knowledgeable, experienced, qualified Property Manager?

Overall landscaping demands can't be put on the shelf while the Board holds its breath, waiting to learn the repair cost of the Indigo Lake Dam.

I believe this is why the Board has finally awakened to the need for legitimate, duly-elected Voting Members. The Board is going to have to recommend a large Special Assessment and/or substantial increase in Annual Assessment (larger than 10%), which it cannot levy without the approval of a large number of (legitimate) Voting Members.

One or both of these Assessments will be required to put the Association back on a solid financial footing.

This problem has been growing for at least six years. Why weren't the Members alerted? Why weren't dues increased when expenses were going up? Why were required contributions to Reserves reduced (even to zero in 2024!), without notice to Members?

It was the old sleight-of-hand trick. Increasing operational expenses were paid out of collected dueS, and no one said, "We aren't putting money in Reserves like we should be."

Some of those Treasurers can't be asked; they are dead. But the others? They should be grilled about why they didn't alert the Members.