Takeaways from the Board meeting Budget Approval

8/2/2021 41 Comments

Takeaways from the Board meeting Budget Approval

There were over 100 homeowners attending the monthly HOA board meeting either in the lounge or by Zoom. Over 30 texts and letters were sent to the HOA. Only one was read and it had nothing to do with the budget.

Peter Webb , our HOA President made it clear that homeowners do not have a right to see the complete proposed budget prior to approval. Please note: The complete budget is not sent to the Homeowners. We receive a summary of the budget and the changes that directly affect dues, assessments and other fees.

During the meeting, there was no mention of continuing any of the pandemic driven cost cutting measures implemented during the last year and Peter Webb made it clear that dues will continue to rise to meet any increases in expenses in the future. We are focused on covering expenses not cost containment.

The budget was approved with all the increases intact and a slight increase in the golf memberships. No explanation was given for why this increase was needed. Bill Bergstrom was the only Board member that voted no on the budget.

A summary of the budget will be sent out. Hopefully it will explain where the new monthly dues of $710 will be applied. We know that $500 is being assessed to over 300 homeowners for short and long term rentals ($150,000). These funds are earmarked to hire a new Compliance Officer, add a new weekend employee to patrol services and add a new vehicle to be used by patrol services.

The new $50 transponder fee was needed to cover the cost of applying the transponder and recording the transponder and activation for the transponder.

The complete board meeting was recorded and should be available if you want to understand how the board operates and get additional details on the processes and logic behind the increases in dues, contact the HOA at:

[email protected]

and request a copy or link to the recorded budget meeting.

41 Comments

8/2/2021 01:24:09 pm

If owners had any brains they would Recall this entire Board.
Everyone.

And start over.

Art

8/2/2021 01:29:51 pm

Do the state laws around HOAs address how much budget detail homeowners are allowed access to and when?

Valorie Farber

8/3/2021 07:07:01 pm

Here is a link from Davis-Sterling: https://www.davis-stirling.com/HOME/Annual-Budget-Policy-Disclosures

Valorie Farber

8/3/2021 07:10:27 pm

From Davis-Sterling:

NOTE #1: Full Report. If a member requests full reports, the association must deliver full report to that member, rather than a summary of the report. (Civ. Code §5320.)

Cyndie Barone

8/2/2021 01:34:18 pm

I am looking at my previous notes and thought the HOA fee was going up by $24 a month come October? Is the additional increase due to the change in Spectrum services? Does any on know? Thanks.

Jeanette Morocco

8/2/2021 02:07:43 pm

This is a disturbing - disgusting JOKE !!!
What are the homeowners saying about these changes ???
What can we do to these changes disputed ?

Jeanette Morocco

8/2/2021 02:09:11 pm

I cannot be the only homeowner who this is NOT acceptable.
How do we fight these changes ????

Ken Muraco

8/2/2021 02:29:57 pm

Was completely embarrassed by the order that this meeting was held. No respect to the homeowners, both present and on Zoom. The “President” was arrogant and rude in his statements and direction.
I would love to apply for the new position paid for by raising our Renters fees . With $150,000 I could pay myself very well and drive a new Porsche.. RIDICULOUS! We have The city hall for this “ required work” . The security vehicle sits idle plenty of time to be used IF necessary. Buying a new vehicle is a waste of our money and an insult to our intelligence. Eighteen years paying fees that I understood as mostly necessary, but this takes the cake. I’m selling.

Terry ALBRIGHT

8/2/2021 02:42:29 pm

I would support a recall of Peter Webb.
I'm sure that would have a very positive impact on the board. Jerry Storage should be next. How does a person with no "people skills" end up in his position?

8/3/2021 10:53:48 am

Who is going to pay for this recall that you want? Recalls cost over $12,000.

Valorie Farber

8/3/2021 02:22:02 pm

I am curious also, where funds normally come from for recalls of HOA boards?
Does anyone know the answer to this?
If we have to privately fund it, if 300 homeowners donate $40, that would equate to $12,000. I am sure some would donate more than that to help make up the spread. I am sure, some may read that suggestion and think "good luck with that" and I get that. But, perhaps their is some sort of a hybrid solution to this. Such as, perhaps HOAs have to allow for a certain allocation of funds for recalls and part of the funds come from that and part come from private donations to the effort. (And another question is, are private donations to such an effort, allowed?)
I don't know so that is why I am posing this question.
Anyway, if anyone has any info on that financial part of a recall, please share. I know that some owners were present and/or involved in a previous recall(s) of the BOD. So perhaps one of them can chime in here.

As a note: I have held off vocalizing too much here for fear of retaliation from the BOD. So if there are any BOD's reading this, who may have ill intentions against those who support a recall, I have already obtained legal council on retainer to defend me for discrimination, among other things. I will press charges if you retaliate.

Rob

8/2/2021 02:47:33 pm

What is our recourse to recall/remove every board member who voted in favor of this budget?

Tony Minniti

8/2/2021 03:03:24 pm

Who does this update and notifies the homeowners ?

Mary Maloney

8/2/2021 03:23:26 pm

This board had no intention of listening to the homeowners. Raising dues over 7%, yet raising golf member 2% makes zero sense. The homeowners are going to continue to fund a "private club" for a select few who want to fight outside guests and revenue being brought into our community. THIS IS A RESORT, not a 55+ community.

Furthermore, the increase in rental fee to $500 which is a 400% increase so that we can create more payroll with a compliance officer, an extra patrol person and buy another vehicle simply outrageous. Those of us that operate rentals ALREADY COMPLY with the city. Our HOA is creating unnecessary redundancy and our HOA is NOT REQUIRED to report to the city which was said at the meeting. According to the patrol report for May that was read at the meeting only 3 noise complaints were reported........we don't even know if those were renters, but even if they were, WHY do we need an extra patrol person and a vehicle for that????

Our HOA board should be focused on security and lighting within our community. Theft and other issues are WAY MORE necessary right now then trying to focus on STVR and long term renters. This board is misguided and focused on the wrong issues at hand.

Board member Russ said frankly that the increase in rental fee should be a burden of the rental owners, then why isn't the golf/country club costs a burden of the actual golfers.........

Lets use logic. This needs to be run like a business not a nonprofit charity organization.

I will be submitting my application to run for the board at the next opening and welcome support.

kaern sugg link

8/2/2021 03:54:25 pm

when reading security issues per month I am wondering where all this STVR issues are?? a noise complaint? why is security not having to label if it is a guest, STVR renter or a home owner. I am now paying $2500.00 a year to have the same 4 couples stay at our home. We have NEVER once had a complaint. I dont allow animals or children. I would really like to know the breakdown on the board if they have rentals or are golfers or if they own a condo and want to again vote for condo extensions! this is ridiculous

Mary Maloney

8/3/2021 08:09:35 am

Exactly!!! It is my understanding that all board members are villa owners. We need condo ownership represented on the board and a rental owner representing on the board. I am planning to run at the next open application. With 300 rental units, we should be able to have an impact on this vote and the board itself.

Valorie Farber

8/3/2021 02:02:40 pm

Same. We have never had a complaint either. What I have had however, is that I have been wrongfully accused by the HOA and Management Trust in regard to their rental compliance program. I was wrongfully accused of being out of compliance (with the rental application.) I was one of the first to turn my application in last year. I found out only by trying to inquire about when renewals were due, that there was a $5,000 fine pinned on my account. I was told by the previous asst. mgr at Mgt Trust that I was guilty until proven innocent. I had not received any violation notices, no notice of hearing and no notice of hearing determination. Not one thing was sent to me! I only found this out through my inquiry of being proactive to renew my rental application with the HOA. I had to spend hours sending all of the proof I had to prove my innocence. This was so daunting, I actually hired and consulted with an attorney to help me navigate through their mess. They did finally rescind the fine, thank goodness. But, in my opinion, you cannot instate new regulations in the HOA if you have no good dependable way to manage it. And, the HOA should not be having hearings unless a Certified Letter has been sent out with proof that said notice was even received by the homeowner. I couldn't believe that a violation, a hearing date notice and a hearing determination were issued without my having received not one of them. That is very disturbing. Thank goodness it has been resolved. I wonder how many others have been inflicted with the same.
I do not understand why the HOA is trying to complicate this. The City is already managing rentals. I had to pay the City over $2000 this year for my renewal license. I am already in compliance with the City. Why is the HOA and Mgt Trust trying to duplicate the City? I seriously can't make any sense of it.
I too, like someone else said here, can't figure out either why they are saying that we need a new patrol person and a new truck. Most of the time, there is a security truck, parked by the front gate.
Lastly, Stacy Atherton was the previous compliance manager. They just promoted sweet Kirstie Thomas to compliance manager. (Kirstie was the receptionist.) Stacy's salary, of compliance mgr, was already accounted for. So Kirstie is just replacing Stacy. So I don't understand where the additional funds are needed? They aren't planning on hiring yet another compliance manager are they? And if so, what for? Again, this is being overly complicated. The BOD is making it sound as if they have to manage our guest reservations or something. And as far as I know, the only thing the HOA has to create for the City in regard to rentals, is a letter that the HOA gives to the homeowner that states that they allow STVRs within the HOA. That the homeowner then submits to the City with their business license application. That letter can't take anymore than 5 min. to send. There is nothing other than that, that the HOA is doing for the City. This all just isn't adding up.
I too, like Mary Maloney plan on running for the Board this next round. I run a $12 million dollar company and I know how a business is run. And I see serious problems in the thinking here in how things are being done. The biggest concern aside from financial negligence, is the lack of respect and care shown to the homeowners.
We can make a change by voting in new members to the board.

Caroline M

8/2/2021 06:30:30 pm

My understanding is that there are already two compliance officers - a senior and a junior. Why on earth does a complex of our size need three officers?

Bill

8/5/2021 09:57:34 am

Valerie it is appalling what happened to you and I imagine an extremely stressful time imposed on your life unnecessarily. Seems to be a "cowboy" way to handle business and in a manner that is very unprofessional. Is this the way that neighbors should treat each other!? Absolutely not, and you got the brunt of it! I think power gets to people and changes the way they treat others. We are seeing that, and I don't think they are aware of what they are doing to people and the negative affect it has, or so it seems. Not to mention the stress level that is added to our lives along with the time out of your life to deal with it!
If there are issues with rental situations, it is not handled in the "one-size-fits-all" rules and regulations, and imposing fines to all for gosh sakes! We all want a nice peaceful quiet community, and if there are trouble spots then let’s deal with those. Let’s not all beat up on each other. The board has to back off on what it is doing to people.

Cyndie Barone

8/2/2021 03:24:37 pm

Make one wonder how they get voted in - doesn't it?

Pam Meadows

8/2/2021 04:54:12 pm

This board is a joke. They are worthless. Enough said.

Michelle Simson

8/3/2021 06:47:45 am

With all due respect to you Pam and to be fair, the entire Board isn't useless, but it's always true that the rate of the pack is set by the leader. In this case, our leadership vacuum is painfully obvious. This is our community, not the personal fiefdom of a few tin-earred individuals. Bravo to Bill Bergstrom for bringing forward the owners concerns, likely at a personal cost to himself. THAT folks is what a good leader is all about. Thank you, Bill.

Gilkbert Caldwell

8/2/2021 05:11:18 pm

It's apparent the board is only interested in golf. The majority of people who own here do not use the golf course. I wonder why the golf fees didn't go up 400%? We need to recall this BOD. This is only going to get worse if we continue to put the same people on the Board.

David Guerra

8/2/2021 06:53:48 pm

The first item to remove from this budget should be Spectrum cable. Make this a decision for each homeowner in the community.

Valorie Farber

8/3/2021 02:25:22 pm

I believe they have signed a contract. Not sure if that contract has a term to it. Or if it can even be cancelled...

Anonymous

8/3/2021 07:45:55 am

It does seem that this board has lost any interest in representing the community's best interests, or even giving the respect of listening to POV's. Several people have suggested a recall of the board members. It seems that is appropriate. Who knows what the steps are to commence that process?

Denis Friezner

8/3/2021 11:00:54 am

I think that this board is doing a FANTASTIC job. You should have been here when J. Purdy was running the BOD, there were no increase in dues for years now we are paying for it.

8/3/2021 01:14:34 pm

Thanks Peter.

Can't believe what I am seeing

8/3/2021 06:45:14 pm

I have to assume that you were not at the board meeting nor listened to the Zoom. No one with half a heart would approve of the way this board speaks to other people. The disregard for others who are members of this community is appalling. We can all agree or disagree on how the "job" you think the board is doing is being done. But there is one thing for certain, it is 100% UNACCEPTABLE to treat people the way that several members of this BOD do. There is gross breaching of fiduciary duty by this BOD. There are short and long term personal damages being done to many people's livelihoods. What some of the members on this board are doing, is gross mismanagement, discrimination against certain groups, irresponsible spending of funds and the list goes on. What is taking place right now, is a class action lawsuit in the making if something does not change soon.
Vote them out!

Charles

8/3/2021 07:41:40 pm

You maybe right about the dues not going up but there was no useless money being spent either. Now our HOA dues are going up every year and the board is spending, spending, spending! We, homeowners are paying for the golf course YOU and most of the board members golf on. We need someone in the Pro Shop who knows how to run a golf course like a business and make it profitable. I am tired of subsiding the country club from my HOA dues. My guess is you didn’t even listen to or show up for the last board meeting. Our President Mr Webb was in fine form, being arrogant and rude to homeowners and board members. This isn’t the first time.

Anonymous

8/3/2021 09:04:24 pm

And all due respect my friend you are not looking at the facts nor are you understanding the fiduciary duty of a board member. There is nothing acceptable about the board conduct. Unless you were in the good old boys club playing golf with these guys there’s no logical reason to find this board acceptable.

Bill

8/3/2021 03:14:35 pm

Don't forget that earlier this year we had an election for new board members. Corruption in this HOA board reared its ugly head. The person who was elected suddenly decided to resign immediately after the election, (why?). As a logical replacement, the consensus among homeowners was for Char to be added to the board since she was runner up. The board completely ignored what the HOA community wanted and placed their own hand-picked person who is also in cahoots with them. If this is not illegal, it is very immoral. Gives you the inside and obvious scoop of what is going on.

Anonymous

8/4/2021 09:31:18 am

I also found that action on the part of the board member who obviously knew he'd be leaving the community when he ran for reelection to be a highly immoral act. This was the point that I began to understand that this HOA board does not have the best interests of the community in mind, but the best interests of a small and select group. The obvious and appropriate response to this "retirement" was to instill the will of community, and assign the post to Char, who was the runner up in votes cast. As a result of this, I've lost all trust in this board.

Mary Maloney

8/4/2021 01:05:01 pm

Agree with you 100% Bill!!! Shady as all get out.

Mary Maloney

8/4/2021 01:08:06 pm

4 properties have come up for sale today!!! In the height of the off season!!! Coincidence??? I don't think so. You are going to see people leaving our community because of the increase in dues and blank check spending by this BOD without any focus in bringing in outside revenue. Better watch prices and property values, we are on a slippery slope to becoming the Desperate Princess without swift action to run this community with the interest of the community not a private golf course for a few.

Anonymous

8/4/2021 02:44:42 pm

It's most unfortunate the Board reactively distributed an outline of the rationale for the budget approved on Friday. As well intentioned as this first ever missive was, it does illustrate that concerned and disenfranchised homeowners voicing their concerns in this venue, finally prompted SOME explanation for the inexplicable. That does not, however excuse the rude, arrogant and disrespectful behavior exhibited by some members of the Board towards the DP owners and stakeholders.

TMSR

8/5/2021 01:32:06 pm

I suggest every home owner should read the following ….. 13 Legal Homeowners Rights Against HOA and FAQs/HOA Management at - www.hoa management.com/homeowners-rights-against-hoa it make for interesting reading. BTW who’s going to spearhead the recall if any ? You only need 5% of the homeowners signatures to start one and the HOA has to grant you one within 20 days of filing the partition.

TMSR

8/5/2021 02:30:48 pm

Correction on website hoamanagement.com/homeowners-right-against-hoa
This is for 13 Legal Homeowners Rights Against HOA and FAQs/HOA Management.

Craig Robinson

8/9/2021 06:02:33 pm

As I stated in my comments last month, I have been a weekender, and golfer here for over 32 years. I am not surprised at the reaction to the increase; and I realize that most of you are just airing his or her frustration when calling the Board incompetent and corrupt. Do any of you honestly believe it? They are doing the best they can. What surprises me is that all of you can read the budget, but I do not know how many of you know the history of the Desert Princess, or have read the CC&R's.

As to the history, this has always been a short term rental community. It might not surprise you, but there is a hotel on property! When it was a Princess Hotel, and a number of years thereafter, the Hotel ran its own rental system for our condos. The only modification has been the changes in the law, and we must comply with what Cathedral City dictates.

As to the CC&R's there were two purposes for the Proprietary Dues, (see my July comments if you do not know what Proprietary Dues are), that are now part of the HOA fess. First, to pay for the added value to your property and beauty of being on a golf course, and second, to give every homeowner a right to use the services of the Country Club, including Clubhouse, Spa, Tennis, Gym, Pickleball, and Golf. From the First to the Second restatement of the CC&R's shortly after the HOA's purchase of the Country Club, the CC&R's were changed. It states that a homeowner now has only a right to buy a membership in the Country Club, not the right to use the Country Club. Those of you that are homeowners and not Country Club members technically have no right to ever enter or use the Country Club, except for the restaurant because of Federal Interstate Commerce issues. In both the first version or the second restatement of the CC&R's, it required that for any renter to use the services of the Country Club, the homeowner must be a member. It is in our governing documents, but it is not enforced. How many return renters or referrals would you have if they were shut out at the door?

If you advertise and rent your unit or units to a prospective tenant so that the renter can use the services of the Country Club, and you are not a member, you are already receiving a benefit you are not entitled to. You are not and have not been paying your fair share for years. Pay your $500, and stop bitching, before some idiot lawyer, like me, decides to force the Board to enforce the CC&R's.

In my opinion and my opinion only, this increase is for those who run rental businesses. If you rent to someone once in a while, or long term, put them on your friends and family list. How is anyone going to know?

Valorie Farber

8/10/2021 11:14:39 am

Craig Robinson:

"How many return renters or referrals would you have if they were shut out at the door?"

Fair question to pose Craig.
Touche

"How much revenue would be lost due to closing the door on renters, guests and friends of property owners?"

As owners in DP, we are also all owners of the Country Club and all of it's amenities. As owners, we are then responsible to foot the bill for any losses. DP is a public course. We are in frickin Cathedral City! We are not in Seven Lakes with a ritzy Palm Springs address. And while we don't pay $1200 per month either as they do in communities like 7 Lakes (yet), at this rate we soon will if more isn't done to generate outside revenue from the Country Club amenities.

Renters and guests DO pay for use of the amenities. Just as the hotel guests and the rest of the public do. It appears that you are inferring that guests and renters are not paying to use the Country Club amenities. They ARE.

It was only very recent that the RE market went sky high. Up until last year, it wasn't uncommon for properties in DP to sit for sale for 180 days to a year! The market will "self correct" and it is in all of our best interests to keep our property values high and attractive to buy in DP. There have already been 5-7 properties go up for sale in the last week. The last thing we need to do, is to start placing limitations on owners, doing things counterproductive to keeping fees as low as possible, and threatening to limit access to the amenities that make DP an attractive place to own, live and vacation.

Judith Stephan

8/12/2021 11:09:22 am

Having been a controller and board member of a much larger HOA in central CA, I can tell you from experience that it is a big red flag to have a board that is unwilling to disclose financial information and that is so adversarial with the homeowners. Email them and ask that they resign. They have shown in word and deed that they do not represent us.

We have 2 homeowners that will run for the board openings in Feb. - big thanks to Mary and Valerie for stepping up. We need a third to get a majority (with Bill Bergstrom) to revisit the budget and get this place straightened out. It is possible to turn things around. It takes a lot of work and active involvement of the homeowners.

Every homeowner has the right to request a meeting with the board to resolve a dispute if you believe that they are not complying with state law or otherwise breaching their fiduciary duties. Homeowners also can file lawsuits including in small claims court. There is a non-profit organization that helps homeowners with HOA legal issues: calhomelaw.org

Your comment will be posted after it is approved.

Charter

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Takeaways from the Board meeting Budget Approval

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