Town Hall Meeting

The hall wasn't packed, but there were quite a few shareholders present for this important Town Hall meeting this afternoon. Our manager Cheri began by explaining the limited proxy that was included in the packet that you received, or will receive soon. Call the Office if you don't receive your packet in the next few days.
After you wade through the meeting notice, president's message, and several versions of the budget, you'll see a chartreuse paper (bright yellow-green) labeled "Limited Proxy". You only need to sign this if you will not be present at the November 23, 2010 meeting. If you do not want a 33% raise in monthly fees, vote YES. Yes means that you have given your approval to only partially fund the reserves this year, and there will be no maintainence fee increase.
This had to be explained several times, in several ways, until most everyone present finally understood that a YES vote will keep the maintenance fee at its present level for next year. Next year, we have to do it again. Every year, we will have to have this vote because we will never fully fund the reserves, because they are always evolving, getting spent, and then saved, over and over. One item has only 2 years of estimated remaining life, and another has 58 years of life remaining. Once they are done and paid for, we begin saving again. It will never stop.
Please, do the math on the paperwork that the board put into your packet. Many of the items listed on the back page table  that we were given to help us understand the need for this horrific increase, appear grossly over-estimated. There is another table, a four page table, which apparently explains the need for this increase. The board received this four page report, but the shareholders didn't. It wasn't printed in the Outlook, but it sure could have been. When asked who created this document, we were told that the numbers came from the old 1991 study that was done when the park was purchased. The 2008 GAB Robins Reserve Study also contributed to these numbers. No engineers were consulted this year, no reserve study was done in the last 6 months. When asked, Cheri refused to say who put the latest numbers together, because she "forgot who did it".  What an insult to our intelligence. The new reserve totals were put together by a group (or one) of the Infrastructure Committee. A resident did the computation, or maybe it was a board member. OMG, maybe it was the board president! It was announced at a board meeting and we were all asked to applaud the wonderful effort of the Infrastructure committee. Whatever.
For the remainder of today's meeting, two distinct groups became apparent in the hall. One group, with a few loudmouths, shouted for everyone present to shut up and vote yes, and don't consider the numbers. In the other group, a few people asked thoughtful questions and made conscientious comments. God bless the inspired, truely intelligent senior residents present who asked why this was being rushed, literally crammed down our throats without allowing time to fully digest all this new information. Another senior asked why neither our attorney nor the accounting firm we pay close to $10 grand annually has never pointed out any reserve deficits, and year after year offered glowing reports. The answer we received was really lame, boiling down to "You get what you pay for". Most people walked out while their neighbors were still making comments.

If you're still with me, let's get down to the bottom line: (if you can't handle swearing, go no further)

1. The general conscensus is "Vote YES". I've already witnessed shareholders/block captains going door-to-door to encourage the shut-ins who usually never participate, to fill out the proxy with a YES vote. YEA for you. Everyone in the park needs to get involved. Start calling or emailing your absent neighbors.

2. Readers up North... we encourage you to vote YES on the proxy, sign your name, give your address (First line), and put an X before the YES. Email it, fax it (813-839-5442), or mail it in the envelope provided, to the Office immediately. If we do not receive 203 YES votes, we will all suffer the 33% increase on January 1.

3. The board of directors needs to be fully transparent with the shareholders, and quit sending bogus forms and half-assed tables out for our inspection. If you, Board members, made your decision based on a 4 page form, then, by God, we should also see the four page form. One board member, Patty, made that request at the last recent budget meeting, and was apparently shot down. Thanks for asking, Patty. Someone appears to be representing the shareholders.

4. If we ask a question at a meeting, for God's sake, please answer us, and quit this bullshit of dodging directness. (Three times in the last three meetings my questions have been dodged!) Please respect the shareholders of this park. We're the ones who put you there.

FINALLY...
5. Whoever did the reserve computations, bringing the reserve totals to almost $7 million dollars from the measley under-estimated $3 million reported earlier, I applaud your accuracy. (Gee Tim, I can't thank you, because if it was you, Cheri couldn't remember your name.)
While I was serving on the board a few years ago, I attended every educational seminar I could, and encouraged the rest of the board to do likewise. I requested the first official HORC Reserve Study in 15 years. The idea was batted around for almost a year, and finally was agreed upon in the beginning of 2008. If my memory is correct, we paid slightly over $3,000 for this study. The results were astounding, and it was quickly cast aside. The results of the official  reserve study completed by GAB Robins, North America, Inc reported that Regency Cove should be annually contributing $394,035 to their reserves. That means a monthly contribution of $32,836, or a monthly per unit (based upon 400 units) of $82.09.
At that time in U.S. History, absolutely no one was challenging boards of directors of Florida Co-ops. Times have changed. A recession has hit the nation hard, and anyone managing "other-people's-money" has been called to the floor. Volunteer members of co-op boards have apparently been named in lawsuits for  "under-funding co-op reserves". I would hate to think that any volunteer board member has ever been held financially accountable for that, but I guess it is a possibility.
I don't want any undo stress on our current board members, because just the position itself elicits an unbelievable amount of stress. Ask ANYONE who has served.

Hey Board of Directors... not only do we NOT want this ridiculous increase, but we thank you for keeping our park current with the law. Please keep attending the seminars that keep you informed, and encourage every other board member to do likewise.