Rich Kelley's Rebuttal to Cameron's Open Letter

October 17, 2013

From:  Rich Kelley

Open letter to the Highroads Property Owners Association

This is a rebuttal to Cameron English's (Highroads Property Owners Association Vice President) letter (see attached).

            For those of you who may not know me, my wife Karen and I have hosted your POA meetings for the past two years, I am your newest Board of Directors 2nd Vice President.  Since being appointed to the position on September 21, 2013 I was already aware that none of the Board of Directors (BOD) members have been elected by the rules laid out in the Association by-laws.  They require ballots be mailed out to all POA members and a meeting held on the first weekend of February of each year.  This has not been done in 2011, 2012 or 2013.  Instead, Bert Hume and Cameron English have seen fit to unilaterally re-elect themselves each year by not holding those elections.  This is not fulfilling their responsibility to us the Association members and can only be seen as a major dereliction of theirs duties. 

Additionally, they have contracted twice to have the yearly road maintenance performed.  The exact numbers were presented at the past two annual meetings, but the amount for this was over $12,000.00 each time.  The first year Bert Hume announced to the members present that he did not put that contract up for bids but rather hired his long time friends to do the job, (claiming he knew their work and they gave him a good price).  I was told that the same arrangement was made the second year.  The first of those years Bert Hume paid the bill and then received check# 1015 for $12,553.00 from Cameron English (the treasurer) to reimburse him from the POA funds.  This is not how POA business should ever be conducted.  I have a friend, Jim Etherton, on the Eureka Springs phase I board of directors and he just informed me that they just had their roads graded.  They have 21 miles of roads and we have 22 miles of roads.  Jim tells me that they spent $3,000.00 and I got that confirmed by the contractor that did it.  This included a number of repairs to the road.   

            (from Cameron English's letter, see attached)

            "Bert Hume and Greg Anderson worked diligently to keep the roads and the grading of the roads to a minimum cost.   As an association,  we owe these guys a      tremendous debt of gratitude."   

Sorry Cameron, I don't see FOUR TIMES THE MONEY as minimum cost.  GET SERIOUS.  Pardon me if I don't feel any gratitude.  I feel ripped off.  And Cameron where was your voice when these no bid contracts for FOUR TIMES THE MONEY were being awarded?

            (from Cameron English's letter, see attached)

            "Keep in mind,   prior to the association taking over from Arizona Land and Ranches (ARS)   ,   contracts were set to maintain the roads at an average cost of $45k     per year.   Due to the expertise and the contacts and access to capable people and equipment,   we were able to cut those costs to a fraction of the          historical costs.   One year,  we managed to repair the roads,   bring in dozens of truckloads of material to rebuild the critical sections of the roads,  and to            put        the roads right.  All of this work was completed for under $20k."

No, Cameron.  NO contracts were set.  Arizona Land and Ranches paid $11,000.00+ (under 12,000) the last time they graded the roads and their projected budget showed $36,550 to grade the roads three times a year.  You have none of this right.  I have the paper work to prove it. 

            (from Cameron English's letter, see attached)

            "A direct benefit to the association resulted with a surplus in the treasury,  reduced dues ,  ($200 from $290)  and ,  after the membership voted ,  a decision to     use some of the treasury to buy a blade to maintain the roads.  All in all,  a remarkable accomplishment.  A Treasury that  was a direct result of the expertise  of   both Bert and Greg,  and the corresponding savings enjoyed by the association.   If anyone doubts these facts,   take a look at the historical cost to maintain the           roads,  and compare to the three years following the association taking over from ARS."

The vote was not a legal vote since you failed to send out absentee ballots.  The vote to buy a blade was only passed 18 yes and 14 no.  You took this as approval by the members to buy the blade.  With 32 out of 100 members present you think they gave you authority to buy it.  This is indefensible.  The only historical cost to maintain the roads here was the $11,000.00+ (under $12,000.00) which I believe was just prior to the POA members taking over the POA.  Other than that I have seen no history or evidence that the roads were maintained after them being cut originally.  I have lived on my property since December of 2008, I didn't see any maintenance done other than that.   If you have any evidence that any road maintenance was performed other than just prior to our taking over the board, prove it.

            (from Cameron English's letter, see attached)

            "My point in reviewing this information,  is two fold.    First,  we made a decision as a membership and as a BOD to buy the equipment.   Second ,   the benefit of            the work that was done by Bert and Greg are directly a result of the treasury having the funds to support that membership decision.   As it now stands,   certain             people have deemed the vote that was taken,  and the general status of the Board of Directors to be invalidated due to technical violations that did not conform to             ARS Title 33 rules.   

            Along these lines,   the board has acknowledges where ARS33 was not followed to the letter of the law.   The BOD has agreed to rectify the errors that were made           in process and execution of the key areas of collecting votes from the absentee ballots."

No, Cameron.  The membership did not make a decision.  68 out of 100 members didn't even KNOW about this because YOU didn't follow ARS Title 33 rules.  The only way you could correct this is to put it to a full vote.  I intend to do this if I am elected or not.  (I don't need to be on the board to get votes on it).  THEN you can buy the grader.  OOPS!  You already bought the grader.   Well, you can buy it back from us.  That'll be fine.

Letter of the law?  No, you ignored ARS Title 33 completely.

            (from Cameron English's letter, see attached)

            "Where does this leave us?   Basically,  a few disgruntled people have shut down the plans to move forward with a plan to utilize the grader the association owns.   Consider the fact that a quorum majority of the membership voted to acquire the blade,   the BOD confirmed and re-voted to acquire the blade.   The BOD authorized the expenditure of funds after reviewing and doing due diligence on what was available.  We went as far as reviewing an ROI - return on investment and            cost analysis of the strategy to deploy our own equipment.   And 5 intelligent and high integrity individuals voted and the majority decided to move forward.   I was  there,  I can tell you this is exactly what happened."

What you left out here is that 5 individuals were given grossly inflated numbers to compare the purchase of a grader to.  If they knew that Greg Anderson wants $35 per hour to grade our roads and estimates that it will take 2 weeks to do it.....  Let’s see that's $35 X 40 Hours X 2 weeks = $2800.00... plus fuel.... plus the cost of the grader.... plus the cost of liability insurance...... and workman's compensation insurance     VERSUS $3000.00 to hire a contractor who has all that included in the price.   ROI?  COST ANALYSIS?  Sorry, I already own a bridge.  I bought it when I was much younger and dumber.  The people who see what you are trying to pull here aren't disgruntled, they are pissed.  And they should be.

            (from Cameron English's letter, see attached)

            "Now,  one individual has use ARS regulations to shut down your association from doing it primary and most vital job,   to put the blade to work and to get the         roads restored to their necessary and safe  level.   I feel that everyone that is impacted by this type of politicking and power struggle,   originating from the simple truth that they did not like the majority decision,   should know why our association is facing a stalemate over what should be an obvious action that needs to be         taken."

No, Cameron.  Thanks to YOU we have a board that is not authorized to do anything except for emergency repairs until there is a legal election.  First legal election in over three years, it's about time, don't you think?  We have seen to those emergency repairs and the regular maintenance can wait a few short weeks until we finally have a legitimate election to establish a fully authorized board.  Why is it that you are in such a hurry?  And quit blaming Dave West for calling your major screw ups to our attention.    

            (from Cameron English's letter, see attached)

            "For me,  I am not interested in taking part in a BOD that put politics and power struggle ahead of the best interests of the Association.   Your BOD historically   prioritized the needs of the association and the interest in bringing the community together as the priority.   Sure,  there may have been mistakes in process,  and     errors in execution of policy.  In the end,  I have been involved with groups that allow individuals to become the focal point,  at the expense of the association.   I           do not want to participate in politics and to deal with petty bickering any longer."

Petty bickering ??  Re-electing yourselves for three years running, holding board meetings in private when state statutes demand that they be announced and public, and taking a straw poll of 18 votes so that you can run off with nearly 50,000.00 of our favorite dollars is petty?

            "I will still exercise my right to vote and be heard,   and to be  a part of the community any way I can contribute.   I served the best I could,   with no other interest     other than the betterment of the community.  Although I will not be running,  I urge the membership to vote carefully,  and to appoint people that are more           concerned about the associations' interest than their own agenda.   Bert Hume has always tried his best to do the right thing by the association.  I for one will cast        my vote for his continuation in the job we started and the role as President going forward."

I strongly suggest we do not vote for BERT HUME.  It seems apparent to me that he is interested in his own agenda more than spending our money carefully.  Giving out contracts to your friends for four times what the competition asks is nothing I want any part of.  It is also my understanding that about $40,000.00 was spent to widen Sheep Wash Road and that this once again was done by "his friends".   And where was the POA membership vote to approve something like road improvements, we're supposed to handle road maintenance, road improvements should be subject to a member vote.

I for one am very glad that we've got Bert, Greg, and Cameron's fingers out of the cookie jar.  They have spent over $90,000.00 this year on these foolish moves and have depleted our treasury down to about 20,000.00.  They did not get a legitimate vote from the members.  They were NOT able to produce any evidence that the board had a public meeting and voted to spend the money.  And they were warned when they insisted on being given checks to purchase the grader that they were not authorized to do it.  In short, they spent the money without even their own approval in legitimate form.

In closing.............

I volunteered for this position on the board because I didn't like the members being kept in the dark.  I don't like their money being spent frivolously, either.  I don't think that being on the board is a position of power and authority.  I think it is a position of responsibility to the members to only spend the members’ money in ways they approve of.  Many see this as they need 51% approval on an issue to spend money.  I don't.  If I don't get a lot closer to 100% (OK 90% is unlikely enough) then I want to talk to those who disagree.  Maybe they will see it my way, or maybe they know something that I don't.  But I see this job as being someone who facilitate consensus.  When you are talking to people to get things done you usually get more information than most others will.  Then, it's my job to lead people toward answers I have found, but never quit listening to hear their ideas and observations as well.  I not only offer to talk to you personally I want to talk to all of you personally. 

My phone number is 928-828-3040 and if it is long distance for you, call me, I'll call you back on Skype. 

You can also email me at:          Rich@RichKelley.com

We are all in this thing together and the more we can come together the happier we all will be.  I need to hear what you want.  I may be crazy to think it, but I think we can share ideas and form a consensus on how to best accomplish our goals.  I came here to help to that end. 

The special election ballots will be in your mail soon.

PLEASE VOTE FOR:

            DAVE WEST

            AL DUFF

            RICH KELLEY

Thank you for taking the time to read this.

I thought you should know these things.

Rich Kelley