9/22/23, 4:32 PM
SLAPPED
Yesterday (9/21/23), Ranch Matters, published a brief report regarding the 9/18/23, Regular Board Meeting. One of the items covered dealt with a comment made by Budget Audit Committee (BAC) Chair Herb Parker.
As reported, he voiced his dissatisfaction with the Board’s decision to override the Committee’s recommendation regarding dues.
The BAC recommended increasing the dues to $46.00 and Parker was upset that the Board disregarded the recommendation and increased the dues to $50.00.
Parker: “This is the first time that a BAC recommendation has been changed by the Board, after a BAC recommendation. First time a BAC recommendation of a HOA due increase has changed in my 15 years of being on this Committee.”
“…SLAP ON ALL OF YOU.”
Parker: “So why bring this up? Maybe it’s time to get the Board more involved in the HOA fees earlier in the BAC process and take the function away from the BAC. Instead of doing an end run after the public presentation,
This is a SLAP ON ALL OF YOU.”
“I thought this put a black eye on the BAC and obviously I was personally offended by this issue.”
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In the comments section of our story, resident Carol Orr commented: “Mr. Parker, I understand and appreciate your statement to the Board and your concern for the need of honesty and accuracy.
Last Feb., a questionable AFE for approx. $22K was unanimously approved by the BOD AFTER THE FACT.
Golf Superintendent Richard Jensen and Ms. Lapora when asked by President Vickery when will the money be needed, Lapora and Jensen stated the work was already completed.
They just needed the $22K to cover the invoice. Why did they deliberately withhold this information from the BAC as your committee was in session.
Even after all of that the Board unanimously approved the 22K. This was a moot point, as no approval was obtained, as Jensen and Lapora acted on their own. Why was this deal done under the radar? Isn’t this contrary to policies, rules and regulations? Talk about a slap in the face, yours, the BAC and the members.
This matter needs investigated. Is there some sort of conflict of interest?”
Parker responded to Ms. Orr’s above comment: “Carol Orr that has absolutely nothing to do with the BAC. That was totally a Board decision.”
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INTERESTING RESPONSE
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What does the Ranch Policy & Procedures Handbook have to say about the BAC’s role and responsibilities?
“The role of the BAC is to provide both an operating and capital expenditure budget to the Board for its review and adoption. In additional, the BAC makes recommendations concerning the funding of the Capital Reserve Plan (CRP) to the Board for review and adoption.
The BAC, based on its findings, shall recommend to the Board the amount they feel should be transferred to the CRP during the next fiscal year. (Resolution 2010-04-19).”
REWIND
As previously reported, a questionable AFE (Authorization for Expenditures) for $21,723.12 was unanimously approved, after the fact, at the February 20, 2023, CRR Regular Board Meeting.
REASON FOR EXPENDITURE?
“Pay Invoice for repair and rebuild of back 9 irrigation system motor pumps.”
The above described expenditure of $21,723.12 was for services performed PRIOR to the Board’s approval and apparently caught them off guard.
Former Treasurer Randy Peterson commented: “Typically we like to see a couple of bids anyway-is it because nobody else would bid this or just nobody else was available to do this work?”
Golf Course Superintendent/Employee, Richard Jensen,
on zoom responded: “This is something Gus (Abbas) and I talked about. I’ve worked with this contractor for several years now. He’s done a great job for us. This was supposed to be, I thought, under about FIVE THOUSAND DOLLARS and they ran into a whole bunch of problems…”
Ranch Manager/Employee, Judy Lapora commented:
“What happened was, there was a lot more damage than was originally thought. Unfortunately we’re talking about some pretty major pumps and not something that, and motors and not something you or I would have-irrigation and stuff at home.
Gus has been great in dealing with this kind of repair for us and knows bigger irrigation equipment. What Richard wants to do, this is going to be an OPERATING EXPENSE , not a CAPITAL RESERVE EXPENSE. What is going to happen is, while this is a big chunk that comes out right now out of the OPERATING BUDGET, this and the other pumps are all going to be a rotating Maintenance schedule…”
Director Ara Erdekian asked:
“At what point did you know it was going to be twenty-two thousand dollars?”
Jensen responded: “It was, back in NOVEMBER (2022). Judy and I sat down and talked about it and JUST WENT FORWARD WITH IT.”
“JUST WENT FORWARD WITH IT.”?
Ranch Manager Judy Lapora and Golf Course Superintendent “Just went forward with it” knowing they were not only violating Policies, but additionally and with obvious premeditation, withheld this information from the BAC-while in session and the Board of Directors.
According to the Ranch Policy & Procedures Handbook:
“The Ranch Manager has authorization to approve purchases up to $5,000 for items that have already been authorized in the current capital or operating budget while maintaining effective cash flows, without resubmitting to the Board for authorization. For all purchases over $5,000, the Ranch Manager MUST GAIN APPROVAL from the Board by submitting an AFE (Authorization for Expenditures) justifying the purchase and citing bids received.”
“Any purchase of a service, commodity, or non-inventory item MUST go through one of the following bid processes:
A: The Ranch Manager will obtain at least three sealed formal bids for any purchase totaling $25,000 in the approved budget.
B: The Ranch Manager will obtain at least three formal quotes for any purchase that is over $5,000.”
Of note, BAC Chair Herb Parker provided his FY 2024 Budget/Audit Committee Report, that included the recommendation to increase the dues to $46.00 at the same 2/20/23 Board Meeting. Interestingly, he made no comment regarding this suspect AFE that excluded his Committee’s input.
“THE BUDGET/AUDIT COMMITTEE, upon careful deliberation and analysis of the financial status of Crooked River Ranch recommends the Board: ADOPT THE FY 2023-2024 budget with an INCREASE IN DUES of $46 annually.”
“CAREFUL DELIBERATION AND ANALYSIS OF THE FINANCIAL STATUS…”?
Ms. Orr ended her comment: “Is there some sort of Conflict of Interest?”
GOOD QUESTION
