4/4/2016 10:13:27 PM
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Section 5: OPA Board Subject: Money is No Object Msg# 945899
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Gene,
Thanks for your note. I appreciate all your insights. I agree that what I would like to see done is probably old news, but not to this board majority. Hopefully going forward anyone who is interested in managing this $13M operation will understand that better controls will only help. I agree with you regarding the challenges inherent in the changing of the boards. Maybe I'm too optimistic that if good controls of the process are in place, future boards would see the value in the controls. I agree with you that the fault lies with the board for not controlling and guiding the GM and the overall process. It is time to put the fighting and egos aside and do what is best for the community. Larry |
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For reference, the above message is a reply to a message where: 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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