4/4/2016 9:26:59 PM
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Section 5: OPA Board Subject: Money is No Object Msg# 945895
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Larry
Kudos for considering a run for the OPA BoD! I think the issue that is still not being addressed is the lack of control and direction to the GM on projects. Every September the Budget and Finance Accounting Committee is tasked with presenting to the BoD its (B&FAC) suggested guidelines for the GM to follow while developing the upcoming fiscal year budget. In many of the B&FAC guidelines I was involved with, the concept of including detailed rationale and cost estimates for proposed projects was suggested. The BoD then, supposedly considering the B&FAC's suggested guidelines, develops its guidelines for the GM to follow. In some of the BoDs guidelines to the GM the concept of including detailed rationale and cost estimates for proposed projects was included. In some of the budgets developed with these latter guidelines, detailed rationale and cost estimates were ignored for major projects. The suggested guidelines developed by the B&FAC vary in effectiveness year to year based on numerous internal committee mechanics. The BoD's guidelines to the GM vary in effectiveness from year to year due to internal mechanics of the BoD irrespective of the effectiveness of the B&FAC's suggestions. Some of the past BoD's guidelines were absolutely worthless in my not so humble opinion. In one recent year the GM got the BoD's guidelines in mid-December at which time most of the detailed budget development work had been completed. To you and all others who are considering a run for the BoD I offer this observation. Over the 45+ years OPA has been in operation, many knowledgeable and thoughtful folks have offered countless suggestions to improve the management processes needed to effectively operate our HOA. These suggestions have come from directors, committee members and other concerned members. NONE OF THESE SUGGESTIONS ARE ADOPTED UNLESS FOUR OR MORE DIRECTORS VOTE TO ADOPT CHANGES. THE VERY NEXT YEAR THE NEW BOD CAN REVERSE OR SIMPLY IGNORE THE "ADOPTED" CHANGE. OPA MANAGEMENT PERSONNEL ARE FULLY AWARE THAT THEY WILL OUTLAST ANY BOARD OR BOARD MEMBER AND PROCEED TO DO, AFTER AWHILE, WHATEVER THEY THINK IS BEST. BECAUSE OF THIS FACT, SOME "ADOPTED" SUGGESTIONS WILL BE COMPLETELY IGNORED BY OPA MANAGEMENT WITH NO REPERCUSSIONS AT ALL. My point in all this is to say that seldom does a BoD candidate offer something that has not been offered or tried before. That fact that many sure fire management processes may not be used NOW does not mean that they have not been suggested and/or used in the past. The power of any GM can only be directed/constrained by BoDs utilizing effective oversight efforts and methods. However, given the overall structure of OPA management and BoDs these oversight efforts will probably be temporary at best over time. Last, but certainly not least, once in the not so distant past, OPA management developed a budget, the B&FAC reviewed the budget, the BoD reviewed and approved the budget. In the very first month of the new budget year four members of the same BoD that approved the budget authorized a $900,000 expenditure for project that was not even mentioned anywhere in the budget. So, it is not always the GM who runs amok with power. It can be any four elected directors who want to spend the HOA's funds as they see fit regardless of an approved budget. Gene |
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For reference, the above message is a reply to a message where: Tom, I finally had a chance to review the video of the special board meeting. I think your approach is exactly what needs to be done with this and all future projects. I think the issue that is still not being addressed is the lack of control and direction to the GM on projects. It appears to me that the problems begin with the budgeting process. A project is discussed and a number appears to be pulled out of the air and put in the budget to get it on the books understanding it is only a number that nothing can be spent without a future motion. This Manklin Creek project appears to have started out with a number of $135k years ago without any understanding of what it would cost. The number then went to $250k and when the project bid came in it was over $750k. No wonder people are so animated over this number. My goal, if elected to the board this summer, would be to stop this process and in the future require more details and rough estimates before the board considers expenditures. The current project management process is clearly not working. The confusion over what exactly the scope and costs of this project are is a by product of the poor project management process. Had the scope of the project been clearly defined at the beginning I think the $750k surprise would not have happened. I agree that the current approved project is nothing more than the board majority breaking down the costs into acceptable bites so that the expenditure for the entire project has to be completed. I agree that the racquet sport issues should be addressed and your proposal appears to be the best way to accomplish the best result for the best price. In all fairness, this special meeting indicates the GM is running with what he is being directed to do by the majority. Whether he or the majority is ultimately behind the project at the $750k price tag, the responsibility to put a detailed scope together for the GM to explore the costs is the responsibility of the board. During the budgeting process Mr. Cordwell stated at one of the meetings his desire to budget $3M for the country club without knowing whether it can be renovated or if it needs to be torn down. This is the decision making that leads to the type of problems the Manklin Creek project is now facing. There are several large expenditures that must take place soon. Beach Club, Country Club and bridges can not be handled without specific direction and control from the board. It is clear to me that you are trying to make the changes I feel are required to get control of the project management process. I hope I am able to join you in your efforts after the upcoming elections. Larry |
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OPA Board Meeting - Golf Clubhouse
12/21/2024 - 9:00 A.M. |
OPA Board Meeting - Golf Clubhouse
1/25/2025 - 9: A.M. |
OPA Board Meeting - Golf Clubhouse
2/22/2025 - 9:00 A.M. |
OPA Board Meeting - Golf Clubhouse
3/29/2025 - 9:00 A.M. |
OPA Board Meeting - Golf Clubhouse
4/26/2025 - 9:00 A.M. |