Tuesday, February 10, 2015

PPHOA board meeting minutes--NOVEMBER 2014

PPHOA Annual Owners Meeting Agenda
12 November 2014

Board attendance: Norm Tong, DeeAnn Jennings, MSJones, Ryan Holdaway, Daniel Trousdale, Kelsey Navasard
Visitors: John Buckley, Esq., Ashley Contario, Paul Contario, Shirley Tong

Review of Minutes from October
1.     Megan needs to send out the annual report.
2.     Megan needs to change the date to October 2014
3.     Minutes are approved

President’s Report
1.     One of the Peterson’s dogs attacked another dog on the property and called Ryan.
2.     He reminds us to call the cops. 

Treasurer’s Report
1.     All is up-to-date and well.
2.     Business checking:  $46,251.39
3.     Capital reserve: $40,549.32
4.     Savings: $25.18

Secretary Report
1.     By-laws all edited and posted to website. 
2.     Megan will make a note on top of the edited copies that it has been edited and to refer readers to the actual documents, which are the legal versions. 
3.     Most recent amendment notarized.
4.     Annual Meeting minutes and fall newsletter delivered to all occupants and mailed to all off-site owners by 15 November. 
5.     Welcoming committee—need several copies of this for new residents.
a.     Megan will make 6 copies for the newest member of our community
b.     Megan and Kelsey will coordinate welcome

Painting Project update
1.     Marcello is unable to finish the paint before he moves to Texas.  This will have to wait until the spring when the weather warms up.   
2.     Ryan was overwhelmed at the amount and selection of the shutters.  They have not been ordered.  He talked to a friend in construction and called a siding company, which might be able to hang them as well.  
a.     We have one $1400. This is too much. 
b.     Bid from Santos.  We still don’t have his number from Kim McClellan and have been unable to get a second bid. 
3.     Is Marcello leaving the paint?  We need to get the paint.  Ryan will get that paint and the names of colors so we can match them in the future. 
4.     WE WILL COMPLETE THE PAINT/SHUTTER PROJECT IN THE SPRING
a.     Finish painting Mason and Walker doors.
b.     Explore working with a siding company for purchase and hang of shutters

Repair updates
1.     McKell deck—has not started yet.  Tony is supposed to start this week.  DeeAnn will follow up.
2.     Flashing between Trousdale and Jones roofs?
3.     Sidewalk repairs (start with lifting save shaving for next year.)
a.     Gregory would not get a quote over the phone—this is troubling and we won’t pursue this contractor although he came recommended
b.     Ryan can get more bids on the phone, but these would be from billboards.
c.     Norm is willing/able to use Angie’s list. 
d.     Precision was $1300 for the shaving and the lifting was in the $500 range. 
e.     We decided in our last meeting to not shave now.  The question—should we lift now? We don’t think that run-off from the snow this winter will measurably impact the lawn or homes.
4.     WE WILL REVISIT THE SIDEWALKS AND STAIRS IN THE SPRING.
a.     We don’t need to shave everything that precision marked.
b.     We can use Angie’s list to get new bids.  

DeeAnn Jennings response to request to remove claim to parking spot .
DeeAnn shared a letter she has prepared in response (see PPHOA board files for copy of letter):
1.     This has been very stressful.
2.     She feels the specially-called meeting was an “illegal special secret meeting” filled with “half truths and accusations” that she has not been able to address.  She wasn’t invited to defend her position.
3.     She reasserts that when the Orman family bought the unit, they paid money to gain rights to the parking spot in perpetuity. 
4.     DeeAnn reclaims the rights of sole use to the parking spot.  The family doesn’t plan to sell or ever sell.
5.     The answer to the request of the PPHOA board are as follows:
a.     The affidavits will not be removed.
b.     No paperwork will be filed with the County to remove the claim to the parking spot. 
c.     Because of the private agreement, the Orman family will continue to have the right of sole use of the parking space.
d.     Not agreement provided will be signed. 
6.     DeeAnn feels that since the meeting to determine the Board’s concerns with her claims were held in secret, all decisions are null and void.

The discussion following DeeAnn’s response lasted about an hour and was wide-ranging.  Everyone in attendance participated with comments, questions, and concerns.  The following is a summary of the conversation organized topically rather than chronologically: 

Concerns with the unexpected presence of a lawyer
·      It is intimidating to bring a lawyer to a meeting where the expectation was an open conversation to work towards resolution.  To bring legal council to a meeting to defend a position without allowing the PPHOA to bring council is blindsiding.
·      There is a possibility that there may be further legal action.  Before we discuss any action that we are going to take, we need to be aware that there is a distinct power imbalance in the room with the presence of only one legal council.  We shouldn’t make any decisions in this environment.
·      DeeAnn feels that the letter, which suggested that legal action may be necessary to resolve this issue is she is not willing to compromise, was a threat of legal action. 
·      DeeAnn told her lawyer and her daughter that there would be a lawyer in this meeting, although there was no plan for this, no lawyers have been contact by the PPHOA Board, and no one ever intimated that this would be a legal meeting. 

This is an emotional issue:
1.     Ryan is deeply disappointment that we couldn’t find a middle ground and he hoped to provide respect to work through this.  As president, he tried to work through middle ground—both providing use of the stall and also protecting the PPHOA for the future.  Ryan has not tried to pick a fight, but has tried to talk directly to DeeAnn and not to anyone else.  This issue has led to stress in his life and has impacted the life of his family.
2.     DeeAnn has been overwhelmed with stress on this issue and wants to resolve it quickly. 
3.     Everyone agrees that this has been a difficult issue for everyone—there is a history of concern and complaints over the spot. Some owners have absolutely no problem with it; others report concerns over the years (personal and from other owners) with confusion over the space, lack of transparency, inequality, etc. 
4.     We recognize that everyone has a different entry points into understanding the history of the spot, different times/introductions to the legal filings made by the Orman Family Trust, and has a unique context for understanding the implications of the legal filings.  This also creates tension. 
5.     Throughout the meeting individual members of the board reported feelings of betrayal, anger, disappointment, shock, and frustration.

What is the issue, exactly?
FROM THE PPHOA
1.     The board is engaging in a conversation about the rights connected to the parking spot on the west end of the unit on 165 S as part of their responsibilities to protect the interests of the PPHOA as a community. 
2.     A reading of the legal filings were troubling and the claim of the space was not obvious to them—what was actually filed?  What does it mean?
3.     There is no (and never has been) a record of the exception to the outlined rules that only 1-car garages should have an additional parking space. 
4.     The sale of the land (which was common property, converted by Wayne Luck to limited common property with the construction of a parking spot) needed to be cleared by the PPHOA at the time, as Luck would have held less votes that the other owners (see CC&R 4.2).
5.     There is no record of this approval, which would have let to an adjustment of the plat, or a note in the CC&Rs, which suggests that the sale of the spot happened outside of the legally binding processes established in the CC&Rs. 
6.     The board unanimously felt that the best way to handle this was to honor the Orman family rights to the parking spot while they own the unit and to revert the spot back to public parking on any future sale of the home. 
7.     The PPHOA asked the Orman Family Trust to withdraw their legal filings claiming rights to the space in perpetuity. 

Note:  Since this meeting, some members of the Board have changed their mind and no longer feel that this issue is a concern. 

FROM THE ORMANS
1.     The rights to the parking space were sold to the Orman family by Wayne Luck, the builder, 28 years ago. 
2.     Wayne Luck could do whatever he wanted with the land because he was the builder.
3.     There is no paper trail going back that far, so recent affidavits of neighbors and of Wayne Luck are sufficient proof that money was exchanged for rights to the parking spot in perpetuity.
4.     They have had the space for 28 years and think that no one has contested it, so it is obviously theirs.
5.     If they ever sell the unit, they will also sell the rights to the third parking space as it is theirs. 
6.     The Orman Family trust is unwilling to compromise on this point, even if every other homeowner in the association feels the spot should revert on sale.  From Mr. Buckley: “If you want this parking space, you will have to take it from her.”

Unresolved concerns on both sides of the issue still to be addressed:
1.     Why would the PPHOA Board decide after 28 years to worry about this spot?
2.     Who owns the actual land?  Is the Orman Family Trust claiming ownership of the land, or just the rights to park?
3.     Does an un-notarized letter from the builder, Wayne Luck, stating that he accepted money in exchange for parking rights constitute a “receipt” (Mr. Buckley’s term)?
4.     Even if the affidavits constitute proof of sale, did Mr. Luck have the authority to make that sale in the first place?  If he didn’t, what does that suggest for the future of this spot?
5.     How does precedence (parking uncontested for 28 years) work in a case like this?  Some suggest that perhaps that a “statute of limitations” might make this point moot, since it has been 28 years since the arrangement was allegedly made. 
6.     Has the parking space actually been uncontested for 28 years?  Some say no. 
7.     Can the PPHOA board hire a lawyer with PPHOA funds? 
8.     Can the Ormans sell the rights to land based on the documentation they have provided to date, or would more be necessary? 
9.     What are the implications of whatever decision is made for the future; what precedence are we setting?
10.  How can we know what these documents are if we don’t ask someone with the legal knowledge to explain the implications?

Options for resolving this issue:
1.     The PPHOA Board removes their request of the Orman Family Trust to withdraw their legal filings claiming rights to the space in perpetuity and votes to accept the spot as belonging to the Orman Family Trust in perpetuity.
2.     The PPHOA Board takes this issue to the general membership in a vote to decide if the C&Rs should be changed on the basis of the current documentation to assign that spot to its attached unit as an exception to the currently outlined rules.  This could be a specially-convened meeting or could be part of the June 2015 meeting.
3.     The PPHOA Board hires legal council to represent its interests and we allow a judge to decide whether the claim is valid.

Additional points for consideration:
1.     One concern is that Wayne Luck may have sold the rights illegally and if he did, that matters.
2.     It’s a parking spot.  What is the big deal?  Is it worth all this turmoil?
3.     The parking spot has financial value.  Mr. Buckley suggests 5 times its purchase value as a thumbnail--$12,500.  This is how much more the house could sell for (and this would improve the value of all our homes).  Or the PPHOA could buy it back for that price.
4.     If anyone has a concern with Glen Jones in his former tenure as PPHOA president and treasurer, they should talk directly to him. 
5.     The PPHOA Board doesn’t think we can aggressively address other parking infractions until the documentation outlining rights to parking spots is clarified.  This conversation is key to that documentation,
6.     Other than Mr. Buckley, none of us are lawyers.  But based on a layman’s reading of the situation, particularly with the issue of precedence, it may be that the spot belongs to the Orman family while they live there. 
7.     The Board is not trying to personally attack anyone, but is trying to understand and follow the rules as they are outlined.   We feel it is important to be exacting with the rules we are meant to uphold and enforce. 
8.     Mr. Buckley and the Orman Family agree that they do not own the LAND on the spot—only the asphalt and the rights to park.  Would they be willing to put that in writing? 
9.     Mr. Buckley reminds that any lawyer who is hired to give an opinion will tell you what you want to hear.  Lawyers can read any opinion onto any document, so it may not be fiscally responsible to hire a lawyer to review the documents just to offer an opinion.
10.  Mr. Buckley points out that HOAs frequently make new parking spots and not change the deed, the plat, or the CC&Rs. 
11.  While the Orman Family Trust and some early owners in Park Place do not believe that there is any problem with spot and that no-one cares, anecdotal evidence suggests that others do care, are (and have been for years) confused about that spot.  Since there is so much movement in and out of units here, resolving this concern and making it public is key to help avoid these problems in the future. 

Is this something that all homeowners should have a say in? 
1.     Norm suggests going door to door and asking all homeowners what they think. 
2.     The Contarios report they have already spoken to everyone in their row and report that some homeowners are livid and would never support a lawsuit. 
3.     Mr. Buckley points out that this is a tricky proposition because the question that is asked will entirely dictate the response.  For example, if we ask homeowners if they are willing to spend $300 of their own money to hire a lawyer to contest the Orman’s right to the parking space, no one would agree.  But if you ask them all if they would like one extra parking spot that anyone could use, everyone would agree. 
4.     We agree that going door to door to talk to owners is not the right course of action at this time.
5.     Bringing the issue to the homeowners in a meeting is still a valuable option to consider.
6.     Some believe that every homeowner would have to be contacted and give unanimous approval in order for the Board to contact legal representation to contest the Orman Family Trust’s claim on the parking space. 
7.     Others disagree, as hiring an attorney a defined use of common expenses (see CC&R 1.5.b) and hiring attorneys is outlined as a responsibility of the board for default infractions (see CC&R 12.1.) 

Additional parking at Park Place:
1.     Why haven’t we towed all of Glen’s cars?  Some believe this is a bigger issue than the parking spot.  Megan reminds the board that the Joneses absolutely agree that his cars can be towed and that this could have been done for years and still can be and the Joneses would not complain.
2.     We should reconsider all of the parking spaces in the back—is RV parking still the best use of that space?  Most agree it is not.
3.     Should we consider selling other spaces, if this has been set as a precedence?  Kelsey absolutely would have liked the right to purchase a space. 
4.     We could rip up other lawn and convert to more spots, if we wanted.  We don’t necessarily want to do this (especially to loose the basketball court.)

Action:
Ryan moves to table this discussion until January.
Daniel seconds.
Voting: 4-2 in favor of tabling the discussion.