As was expected, the revision and consolidation of Board policies 152 and 153 eliminating the property owner approval requirement for all maintenance or replacement capital projects exceeding $1 million was approved unanimously by this board on September 30th. What was not expected was the statement that there had been little property owner opposition to the proposed change. (1)
Opposition was certainly expressed on the pages of this blog at https://bcmatters.org/mission-accomplished/ currently subscribed to by some members of the board. Opposition was certainly expressed to this writer by some property owners. But apparently, any opposition was not strong enough, big enough, loud enough or directed enough. Or perhaps some property owners have simply succumbed to the hollow reassurances and misinformation provided by the members of this board, thus failing to recognize or see the significance of this revision.
Even more astounding and disturbing, now comes the realization that while voting unanimously to eliminate the approval requirement, the very same members of this board were required to simultaneously internally choose to break promises and discard commitments made to the property owners only ten months before. Given the seriousness of that statement, let’s regress only a bit and look at a quick timeline.
November 2020 . . .
This 
screen shot is taken from the November 17th Town Hall meeting to promote passage of the $2,500 Capital Contribution Fee (“CCF”) amendment. Concurrent with the presentation of this slide (2), members of the association were assured by leadership that any revenue generated from the “CCF” could not be used for projects exceeding $1 million without property owner approval.
December 2020 . . .
The ballot package containing an information sheet titled ” 10 Things to Know About The Capital Contribution Fee ” (3) along with the ballot requesting approval of the “CCF” amendment was delivered to property owners. As one can clearly see, item number 4 states, “While the fee gives the POA the ability to plan and pay for major projects, no capital expenditure of more than $1 million can move forward without a vote by Big Canoe Property Owners”.
The inclusion of this now false proclamation in the actual ballot package is questionable at best. Why did this board feel it necessary to not only emphasize the property owner approval requirement at the November Town Hall, but also to include that reassurance within the actual ballot package? Was the reassurance provided in hopes of influencing and securing a favorable vote? Did the board fear a rejection forthcoming if they failed to provide this promise? Was this deception by design?
February 2021 . . .
Shockingly, almost immediately after the conclusion of voting on December 30th approving the “CCF” amendment, a sub-committee of the Finance Committee was formed to address revisions to capital purchase policy numbers 152 and 153 containing that approval requirement. With full knowledge and previous participation regarding the prior promises made to the community, the POA treasurer/Finance Committee liaison sat on this sub-committee. (4)
July 2021 . . .
After review by the Audit Committee and outside legal counsel, the sub-committee presented the Finance Committee the revisions to these policies that included the removal of the property owner approval requirements. The Finance Committee in turn recommended approval by the Board of Directors.
Thus, completely contrary to the information sheet included in the “CCF” amendment ballot package as well as the reassurances cited by the members of this board, the required first reading of the revised policy stated that “expenditures to maintain, manage and operate existing common property” would “not require a Property Owner vote.”
September 30th, 2021
After the second reading took place in August, this board voted unanimously to approve the revisions to policies 152 and 153 thus eradicating the property owner approval requirement for maintenance and replacement capital projects regardless of amount. Whether $1 million, $5 million or even more, that requirement has now been taken away by this board pursuant to a legal interpretation provided by corporate counsel under the pretense of compliance with the 1988 Declaration of Covenants as justification for the change. (5) Given the counsel’s review of this revision, one must wonder if that same counsel likewise “reviewed” and approved the December 2020 “CCF” ballot package containing misleading and unenforceable assurances.
And now, what does it all mean? . . .
Leadership will have millions of dollars generated by the “CCF” at their disposal without any property owner oversight or approval required. They have literally legislated themselves a blank check.
Further, and most unfortunately, as predicted in a previous post at https://bcmatters.org/a-misrepresentation-of-facts/ , any capital project classified as maintenance or replacement for any amount can and will move forward without any property owner vote whatsoever regardless of the source of funding (provided it is funded outside the restricted Capital Reserve Fund).
What was not predicted was the realization that the very members of this board proclaiming the approval requirements of these capital projects while promoting the “CCF” would be the same board to so cavalierly take them away. Now that takes serious audacity and should warrant serious reflection by the members of this community.
A ray of hope . . .
It must not be forgotten that board policies and procedures can be revised by any board at any time. Perhaps a more conscientious board might seek to reinstate the approval requirement that has been historically honored by all boards in the past. Or better yet, perhaps some future board might even seek to codify the requirement within our covenants.
. . . . .
As always, please feel free to contact me at thepcrosses@gmail.com for questions or further discussion. Likewise, members of the association might consider contacting the Big Canoe Board of Directors with any concerns or disappointments regarding this eradication of property owner rights. Meanwhile . . . take care and stay safe.
Patricia Cross (10438 Big Canoe)
References:
1) Meeting of the Board of Directors Video, September 30th, 2021 (POAwebsite>login>POA>Meetings>SubscribeToOurYouTube . . . >)
2) Capital Contribution Fee Town Hall, November 17th, 2020 at 17:00
3) “10 things to Know About The Capital Contribution Fee”, December 7th, 2020, Ballot Package. 10ThingsToKnow
4) Finance Committee Meeting Minutes, February 16th, 2021 (POAwebsite>login>POA>Committees>Finance>Minutes>February2021)
5) March 26th, 1988 Covenants Article IV, Section 7