October 27, 2016 NRC minutes
Minutes of NRC Regular Meeting October 27, 2016 7:00 p.m. Harbour Pointe Clubhouse The meeting was called to order by Chair Mamie McNeal at 7:05 p.m.
Meeting Attendees Don Blom (Promontory Pointe) Doug Camp (Barne's Spring) Rebecca Neas (Gleneagles) Theo Collins (Harbour Ridge) Joe Herbst (Harbourwood) Julane Johndrow (Long Shadow) Erin Collins (Oak Springs)
Mamie McNeal (Planter's Wood) Lori Owens (Poplar Grove) Michelle Gittens (Shallowford Trace) Jim & Sandy Schrecengost (Timber Ridge) Hamid Ghorashi (Walker's Ferry) Robert Batt (Sagewood)
Member Voice Lori Owens (Poplar Grove) stated that her neighborhood is concerned about discontinuing the 4th of July fireworks. She also asked for clarification about the recent change in the Self-Help Policy, in particular the reduction of time from 30 days to 14 days to have a covenant violation remediated. Chair McNeal explained that the covenant process begins first with a violation notice from BCA staff and is followed by an official meeting with the Hearing Panel. If the Hearing Panel finds the homeowner property to be in violation, a legally mandated 30-day notice of the violation is sent to the homeowner. The homeowner has two weeks to appeal the Hearing Panel decision to the BCA Board of Directors. After a final Board decision has been reached and no covenant remedy is noted, the BCA Staff may recommend to the Directors that the violation be remediated using the Self-Help Policy. The current change in this Policy would allow the Directors to give the homeowner in violation a 14-day notice to cure such. The updated Self-Help Policy also enables the BCA Board to perform cosmetic infrastructure changes.
NRC Rep Reports Erin Collins (Oak Springs) stated that members of her neighborhood felt this year's budget process could best be described as a "cloak and dagger" process. As an example, concerned residents in her and adjacent neighborhoods had contacted in vain BCA Staff, Directors and the Finance Committee inquiring about the elimination of Waterside dock. Residents were told to make their remarks during BCA Board's Member Voice. When residents appeared at the October BCA Board meeting to speak against elimination of Waterside dock due to budgetary constraints, several residents were not allocated their 3-
Minutes of NRC Regular Meeting October 27, 2016 Page 2 minutes to speak. This, in E. Collins' opinion, creates a sense of distrust in the budget process. E. Collins also feels the BCA Board discussions are perfunctory because it appears the Directors have already privately discussed issues and made decisions before hearing from residents during Member Voice. The recent process has created a sense of concern over the expenditure of our assessment dollars, especially since one BCA Director was "shut down" when specific questions about the budget were asked. Chair's Report Chair McNeal asked the NRC Reps for their feedback on the 2017 recommended budget. McNeal noted that several NRC Reps had electronically commented on this year's budget process, and she explained that in June of this year, she was directed by the BCA Board that the NRC could not report on the committees. As the budget is under the purview of the Finance Committee, she was not able to report on budgetary issues this year. When asked if the NRC could report on the budget process, McNeal was told that she could only report on date, time and place of budget meetings. First Vice Chair Herbst clarified that the BCA Board told the NRC it could not attend committee meetings and report on those meetings, as it did on BCA Board meetings. An NRC Rep asked "why not?" Herbst responded that the BCA Board felt the Committee minutes were the official reporting of the committees' activities. In particular, Treasurer Friedel felt that the more indepth level of NRC reporting would inhibit the creative thinking of committee members. Herbst who said he has served on many committees personally feels that to some extent this might be true. An NRC Rep stated that the minutes didn't really state anything as they only reflect official actions (votes) taken by the committees. Herbst said he wasn't defending the Board's decision on this issue but was only clarifying the Board's position. He added that "one of the drivers for what feels like secrecy and abruptness" is the short timespan in which the budget must be approved. E. Collins claimed that since the Finance Committee holds open meetings, then anyone can attend and speak about it. Herbst agreed that individual residents were welcomed to attend Finance Committee meetings and report on those meetings as individuals. McNeal clarified the difference by stating the NRC is a committee of the BCA and not an individual member of the Association. She also stated that there was lot of discussion within the Finance Committee about the 2017 budget, as evidenced by the fact that their last two meetings began at 7 p.m. and continued until 11 p.m.
Minutes of NRC Regular Meeting October 27, 2016 Page 3 Several meeting attendees asked about the events of Waterside dock. McNeal explained that originally BCA Maintenance had claimed the dock (attached to a pavilion) was unsafe, as it appeared to sinking. This simulated the same appearance as the Sunday Park dock, which based on its constuction, is indeed unsafe. Resident users of the dock spoke against this safety opinion, resulting in two Oak Springs residents (construction engineers), Finance Committee Chair John Cardea and BCA Maintenance Supervisor Danny Ramsey visiting the dock. Upon review of Waterside dock, the dock was rendered safe but sinking due to natural causes, including the presence of hydrilla. As a result of resident interaction, the BCA will be issuing a request for proposal (RFP) for construction engineering services to review the safety issues and possible reconstruction of the docks to enhance their life span. McNeal reiterated that the dock at Harbour Pointe was unsafe and presently residents should avoid using it until repairs are done. Going forward, the Finance Committee feels all projects to be funded should first be vetted by the BCA committee that sponsored the project or that had oversight of the project. The Finance Committee's responsibility will be to prioritize these projects based on available budgetary funds. Another issue in which residents had impact on budgetary considerations were the drainage issues occurring in Gleneagles. Because the Gleneagles residents spoke before the Finance Committee to the BCA prioritizing this issue, they were able to move this project from near-bottom of the work list to near-top. It is McNeal's understanding that the BCA will be submitting a RFP for the work to be done in early 2017. E. Collins feels that the BCA should utilize more of its residents' skill sets, such as construction engineering in maintaining the Association. McNeal agreed but stated the Association's Financial Policy states that any project costing over $5,000 needed to put out for bid. Don Blom asked if the Vendor Preference Policy was still in place; McNeal replied that the policy was modeled after a State policy which has since been banned. Hence, the Vendor Preference Policy was removed from BCA Financial Policy. Blom asked about the status of the 4th of July fireworks. McNeal responded that this is another example of how resident feedback could impact an expenditure decision. Because numerous residents, including those who spoke during Member Voice at a recent Finance Committee meeting, spoke in favor of making a contribution to the Makos swim team and having the 4th of July fireworks, both have been reinstated in the budget. Owens commented that her neighborhood would be pleased to hear of that decision. Hamid Ghorashi commented that the BCA Board does not want the NRC to report on things that cause trouble; E. Collins agreed. McNeal stated that regardless of what your position might be on the NRC Task Force's recommendation, the NRC officers should review and update its bylaws and charter. If the NRC is a communications platform for residents, then both its bylaws and charter should clearly reflect that. [The following sentences are deleted due to a unanimous vote of the BCA Board at its Febuary 6, 2017 meeting]She recalled the incident of her reporting on CAM considering the re-
Minutes of NRC Regular Meeting October 27, 2016 Page 4 landscaping of the roundabout, Community Manager Bailey distributing a landscape design by Rupert and his stating that the design would cost about $50,000 to implement. Residents who attended that NRC meeting disagreed with this consideration and commented directly to the BCA Board and members of CAM. This created quite a stir. Several meeting attendees asked if the project got funded. McNeal replied that ultimately the project failed in Committee. McNeal announced that a $40,000 allocation has been designated for contract labor to clean up neighborhood open space. She thanked Ghorashi for his efforts in initiating this line item in the Operating Budget. Several meeting attendees asked about the $18,000 expenditure for BCA uniforms. It was explained that a multi-year contract included not only uniforms and jackets for nine maintenances staff but also cleaning of the uniforms. Herbst and Ghorashi felt that this was part of a "normal" service contract. Additional services in that agreement also included such services as providing toiletry items for bathrooms in BCA open space and pools. The Finance Committee has asked that this agreement be rebid in 2017. E. Collins expressed concern for the large variances in the Operating Budget, some more than +50%. She and her neighbors felt the depth of the variances may seem to indicate either poor budgeting or poor oversight on spending. For example, there is an 80% decrease budgeted for covenant violation income in 2017. McNeal explained that residents in violation were probably responding on a more timely basis to covenant violation notices. It was never the intent of the BCA to garner income from covenant violations but rather to have violations remediated. There was a question about +46% variance in 2017 Vehicle Insurance. McNeal explained that based on a recent RFP, the BCA was able to bundle the purchase of insurance to include workman's compensation, liability insurance and vehicle insurance. Although the vehicle insurance rate was higher than the previous year, the total bundle of insurance was less than buying these insurance separately. Herbst noted that purchasing the bucket truck probably also added to the cost of vehicle insurance. McNeal confirmed that there is a recommendation for a 5% assessment increase in 2017. She explained that the need for this increase was caused by the need to replenish the Replacement Reserve Fund. Several unexpected maintenance issues have arisen which needed immediate attention, e.g., marina repair and replastering of St. Ledger's and Harbour Pointe kiddie pools. These unexpected maintenance repairs may cause the Replacement Reserve to fall below the Board's minimum requirement of $1 million. E. Collins felt the BCA Board did not give sufficient overview of the 2017 budget or how it was derived. She asked if a Board member was not allowed to ask budget questions at Board meetings and the NRC was not allowed to report on the budget process, then how can one say this is an open process?
Minutes of NRC Regular Meeting October 27, 2016 Page 5 Michelle Gittens asked if the members of the Finance Committee had finance knowledge. Both McNeal and Herbst replied that many did - either professional finance work experience or had a tenure on the Committee such that they knew how the Association budget works. Herbst noted that residents feeling "a lack of opportunity for input" might be due to time management of the Board meetings, e.g., the open session of the October Board meeting lasted until almost 9 p.m., and the Directors meet in executive session after that. He reminded residents that the Directors were also volunteers, and the Board was inviting members to attend Finance Committee meetings to get their specific questions answered. McNeal remarked that the previous process allowed her to report on the Finance Committee deliberations, giving residents an overview of how the budget was being formulated. Task Force Recommendations on NRC Infrastructure Using PowerPoint slides, Task Force Chair Herbst led the discussion on work performed by the NRC Task Force on its infrastructure. Members of this Task Force are Don Blom (past BCA Director, Promontory Pointe), Hamid Ghorashi (NRC Rep, Walker's Ferry), Doug Wayne (NRC Rep, Rockport Landing), and Joe Herbst (NRC First Vice Chair, Harbourwood). Formed in early 2016, the Task Force has met eight times to reach its recommendations. The Task Force identified the NRC's charter goals as (1) enhance communications, (2) encourage member participation, and (3) provide a means for individual neighborhoods to communicate with the Association. The mission statement of this Task Force is to "improve communications and participation in Brandermill by providing community leaders with actionable recommendations to improve active participation in the NRC." The path taken by the Task Force to achieve the mission statement included contacting large HOAs to gather information about their analogous NRC entity and purpose as well as their effectiveness within the HOA. Their findings (see slide 9 of the presentation) included:
Most large-scale HOAs in central Virginia do not have a committee comparable to Brandermill's NRC. Of the HOAs contacted, only Woodlake reported having a comparable NRC committee. Most HOAs communicate primarily via e-mail. Most HOA committees handle volunteer recruitment for their own respective committees, and most report that their committees are fully staffed with volunteers. Most HOAs conduct surveys, as needed, on key issues. Most HOAs report that encouraging broad participation in community government is an on-going challenge. The HOA which came closest to having an organization analogous to the NRC is Lake of the Woods, an independent civic club. Generally, there are 30-50 members in
Minutes of NRC Regular Meeting October 27, 2016 Page 6 attendance at their monthly meetings which hosts informational speakers, and annual dues are $5/year. Based on the above findings, the Task Force identified four possible infrastructure options: (1) the NRC as a BCA committee under the authority of the BCA Board, (2) the NRC as a BCA committee with some autonomy, (3) the NRC as an independent organization, and (4) no NRC (NRC chartered functions would be performed by other committees). Herbst reported that there was confusion within the Task Force as to what the current NRC structure was; that is, did the current NRC structure have some autonomy or not. Since the NRC is the only BCA committee with its own bylaws, it has historically had a lot of autonomy. When the committees were re-organized in 2012, confusion arose as to NRC's autonomy to achieve its chartered goals. Former Community Manager John Bailey had recommended that the NRC be abolished, with the Marketing and Communications Committee taking over the Meet the Candidates event and the BCA communicating information to the membership. The Task Force evaluating the pros and cons of the above four options (see slides 11-12 of the presentation) decided on two structures: (1) the NRC as a BCA committee with some autonomy or (2) the NRC as an independent organization (see slides 13-14 of the presentation). There was unanimous agreement that an effective NRC must have autonomy/independence from the Board to (1) take independent positions on issues, (2) encourage diverse input to the Board, and (3) act as an direct representative for the residents. In brainstorming sessions, the Task Force discussed in detail the implementation of these two remaining options (see slides 15-20 of the presentation). These discussions included risks and success measures for both models (see slides 21-23 of the presentation). Risks for Both Models:
Continued lack of participation leading to the organization being non-representative Burnout of the officers Lack of new officers; officers with an ax to grind/personal agendas Legal exposures Antagonism and perceived competition with BCA Board and its committees overcoming tensions
Success Measures
Increased meeting participation A full board of active officers Well-attended monthly meetings Well attended regional "block parties" Productive partnership with the BCA Board and Staff
Minutes of NRC Regular Meeting October 27, 2016 Page 7
Good relationships with local government officials A high quality, brief monthly newsletter Establishment of active community service activities sponsored and funded by the NRC Increased subscription to the NRC e-mail communications including surveys An increase of at least 50% in its e-mail list
Recommendation Three of the four Task Force members supported creation of an independent NRC (see slides 24-25 of presentation) for the following reasons:
An independent NRC has the greatest likelihood of success to increase participation and improve communications. An independent NRC will reduce confusion about the NRC’s role and authority, leading to greater effectiveness. The Task Force unanimously agreed that the NRC must be independent of the Board to be effective. The independence achieved by an independent organization might possibly be achieved through an autonomous committee of the BCA. Both models have risks. The Task Force agrees that the greatest risk is continued lack of participation.
The one opposing Task Force member to an independent NRC believes that "Our existing NRC, with its charter and bylaws has autonomy. 'We are fairly autonomous and just don't know it. Unless something in the policies says the BCA can squash us at anytime, I think the NRC can proceed as we wish'." In addition to avoiding confusion in the role of the NRC and enabling the greatest chance for success, Herbst felt one of the biggest advantage in the present NRC becoming an independent organization would be its ability to work directly with local government. He cited the example of the Harbour Pointe Homeowners Association which has successfully worked with the County Planning Department in the past. NRC Discussion Michelle Gittens (Shallowford Trace) felt one of the NRC goals this year was to increase the number NRC Reps. The NRC now has 46 of the 80 Brandermill neighborhoods represented by either NRC Reps or NRC Rep Teams. Herbst asked why those active Reps were not in attendance at this meeting. Gittens believes Reps don't necessarily need to attend meetings because of NRC electronic communications. She felt the [budget] problems presented at this meeting could be addressed without utilitizing an independent organization to do so. "This is my home, and the problems that we've encountered have run the gauntlet. If you have problems with your own family, you deal with it …. If I have something to say, I feel like I can say it."
Minutes of NRC Regular Meeting October 27, 2016 Page 8 Herbst agreed with Gittens' comments, adding that every individual member can do what Gittens does and do it without the NRC. So, he asked "what does the NRC bring?" Gittens described her activities as NRC Rep for Shallowford Trace, e.g., hosting meet-and-greet events for new neighbors, ensuring neighbors are aware of Association news and events, and assisting neighbors with BCA policies and procedures to address neighborhood issues. She concluded her remarks with "I believe the [present] NRC is working for me." Sandy Schrecengost (Timber Ridge), a Brandermill resident since 1982, feels she has more ability to accomplish things as a resident than serving in any other capacity. As a resident, individuals can speak with any entity to achieve their goals, but to avoid frustration, they should be selective with their goals. Herbst agreed that the individual is the key to success in any endeavor. Erin Collins (Oak Springs) felt the previous two Reps' comments indicated the Association didn't need an NRC. She agreed that their described functions could be handled on an individual basis but expressed her concern about an individual taking on broader community issues without some type of structure. Herbst acknowledged the impact of individual resident comments during Member Voice on BCA Board decisions, but feels that on broader issues, an individual might need the support of some type of organizational entity. As an example, he cited E. Collins' neighbors speaking during Member Voice at a recent BCA Board meeting. Schrecengost recalled the issue of family daycare homes existing within residential neighborhoods and the overwhelming number of attendees who spoke at that BCA Board meeting. E. Collins feels that establishing an organization where Reps can coalesce on broader community issues "makes sense". Gittens summarized her feelings by saying that each neighborhood is different and consequently has different issues: "You do what you need to do as a Rep for your neighborhood." Richard Johndrow (Long Shadow) asked if an independent entity had already been established, what liability might there be for this entity, and how finances would be handled by this entity, including tax return filings. These issues are presently handled by the BCA. Herbst, however, feels that these issues could be easily handled in the establishment of an independent entity, probably as a not-for-profit civic organization. Johndrow and McNeal feel that liability is the biggest issue. Ghorashi commented that liability for not-for-profits in Virginia is very limited, unlike that of for-profit companies. Theo Collins (Harbour Ridge) commented that she became an NRC Rep largely because she wanted to meet people. She found her neighbors to be unfriendly and apathetic to what was going on in Brandermill. Then the issue of the marina fee arose, and neighbors quickly came together to acquaint themselves with the issue. T. Collins was overwhelmed by the cohesiveness of her neighborhood, as several spoke during Member Voice at the BCA Board meeting to address the marina issue. This gave her faith in her neigbhborhood. Herbst noted that this was a neighborhood-based project that didn't go through the NRC. McNeal believes that Brandermill is composed of varying eighborhood types, each with its own characteristics. "Most people want to live in peace; most people don't want to get
Minutes of NRC Regular Meeting October 27, 2016 Page 9 involved in the politics or the management of the Association." She feels that the only time you get this type of neighborhood activism is when things are directly impact a sufficient number of residents in that neighborhood, e.g., Waterside dock, marina fees and family daycare homes. She believes the role of the NRC is to have a Rep in every neighborhood who can monitor the impulse of that neighborhood and the impact of BCA Board decisions on that neighborhood. McNeal commented that although she does not oppose an independent NRC, but if voting at this meeting, she would vote to strengthen the current NRC. This would include making the NRC Rep the go-to person within a particular neighborhood so residents could solicit information from them, and the Rep would also gather feedback about BCA Board decisions. She believes that the key function of the NRC Board is to objectively communicate on BCA governance. Ghorashi felt that the operations of the current NRC reflect (1) communicating to residents on BCA Board and Staff governance considerations and (2) neighborhoods organizing independently to communicate with management. It is this latter point that he feels is inefficient. He feels the NRC Board should hear about neighborhood issues, uncover any commonalities and present those common issues to management for action. He feels that an independent NRC would facilitate bringing issues before management for action. It would also enable the NRC to publicly support candidates running for the BCA Board, something prohibited by the current NRC structure. McNeal noted that there is one commonalty among all the NRC Reps: they are all independent individuals. Historically, the Reps did bring their issues to the NRC Board where its officers often worked with BCA Staff to resolve issues and if these were not satisfactorily resolved, took the issues before the BCA Board. McNeal acknowledged electronic communication with many Reps whom she feels are active but often do not attend meetings. She feels electronic participation is becoming the way of the 21st century. Herbst commented that the current NRC lacks credibility with the BCA Board because Reps do not physically attend NRC meetings. He is discouraged by the lack of volunteers to serve on the NRC Board and feels it unhealthy for any organization to have the same two people serve in the same key roles year-after-year. Becoming an independent NRC would be a significant change and perhaps a little daunting, but Herbst feels the change would be for the better. Blom suggested that existing Brandermill civic organizations can do some of the things proposed for the independent NRC, such as supporting specific candidates for the BCA Board. He stated that although it would be easier to form an independent NRC if the current NRC members agreed to it, in the end, any group could form an independent NRC. McNeal clarified that the only entity that could abolish the NRC is the BCA Board. The current NRC is a committee of the BCA Board and reports directly to the Directors. She
Minutes of NRC Regular Meeting October 27, 2016 Page 10 continues to feel that technology allows NRC members to participate without physically attending meetings. E. Collins reminded McNeal of the Board's decision that the NRC could not report on committee meetings, forcing her to attend each individual committee meeting to learn of committee activities. McNeal replied that the decision did not prevent her from reporting on the committee meetings as an individual, something she had considered. However, it was important for her to evaluate the impact of this lack of information on the NRC membership, and McNeal now firmly believes the distribution of information is important to the governance of the Association. Blom noted that as an individual, McNeal could not use the NRC e-mail list and thus would have received far less attention. McNeal stated that her individual communication would have been sent to people listed in the directory, the same method used by various Board candidates. Another methology suggested by Herbst was to print and deliver flyers in mail chutes. T. Collins cited the main item that spurred her neighbors about the marina issue was Herbst's letter to the BCA Board. McNeal explained that to fully implement the communication needs of the NRC membership, the bylaws needed to be updated. Both E. Collins and Herbst noted that the bylaw changes would need to be approved by the BCA Board. McNeal felt confident that she could work with the Directors to get the necessary changes ratified, as the NRC did so in 2012 when the bylaws were last approved by the BCA Board. As a working parent with a 3-year-old, E. Collins disclosed her voluminous efforts to overturn the BCA's 360-property inspection program as arduous and tedious. Her letter to the BCA Board received not response, and she felt harrassed by BCA Staff for more than nine months. After almost a year, the BCA Board finally declared the program illegal, and new inspection practices were adopted. Although her neighbors supported her position, E. Collins claims she could have used an entity's help to pursue the legality of the 360property inspection program. Herbst noted that this was an example of the need to have an organization advocate for neighborhoods, particularly on broad-range issues. E. Collins also recalled her attending a Finance Committee meeting and asking to view the Association's balance sheet. The request was denied. McNeal noted that the NRC did advocate for the balance sheet, and although it took approximately six months, the balance sheet is now part of each Board packet containing financial information. Herbst stated that President Charlie Davis and Directors Greg Pearson, Frances Hillman and Ann Hunt have inquired about the work of the NRC Task Force, and he feels that the work should be forwarded to the entire BCA Board. McNeal stated that the Task Force work (including PowerPoint slides) would first be forwarded directly to Reps for study. NRC Reps should feel free to contact either McNeal ([email protected]) or Joe Herbst ([email protected]) with questions and/or comments. It is now up to the NRC Reps to vote on how they choose to proceed. This will be an issue to be voted upon by the NRC Reps at its January 2017 Annual Meeting, and the
Minutes of NRC Regular Meeting October 27, 2016 Page 11 result of that vote along with the work performed by the NRC Task Force will be presented to the BCA Board.
Adjournment There being no further business, the meeting was adjourned at 9:24 p.m. Respectfully submitted,
Mamie McNeal, Chair
February 16, 2017 Date
Meeting Attendees Don Blom (Promontory Pointe) Doug Camp (Barne's Spring) Rebecca Neas (Gleneagles) Theo Collins (Harbour Ridge) Joe Herbst (Harbourwood) Julane Johndrow (Long Shadow) Erin Collins (Oak Springs)
Mamie McNeal (Planter's Wood) Lori Owens (Poplar Grove) Michelle Gittens (Shallowford Trace) Jim & Sandy Schrecengost (Timber Ridge) Hamid Ghorashi (Walker's Ferry) Robert Batt (Sagewood)
Member Voice Lori Owens (Poplar Grove) stated that her neighborhood is concerned about discontinuing the 4th of July fireworks. She also asked for clarification about the recent change in the Self-Help Policy, in particular the reduction of time from 30 days to 14 days to have a covenant violation remediated. Chair McNeal explained that the covenant process begins first with a violation notice from BCA staff and is followed by an official meeting with the Hearing Panel. If the Hearing Panel finds the homeowner property to be in violation, a legally mandated 30-day notice of the violation is sent to the homeowner. The homeowner has two weeks to appeal the Hearing Panel decision to the BCA Board of Directors. After a final Board decision has been reached and no covenant remedy is noted, the BCA Staff may recommend to the Directors that the violation be remediated using the Self-Help Policy. The current change in this Policy would allow the Directors to give the homeowner in violation a 14-day notice to cure such. The updated Self-Help Policy also enables the BCA Board to perform cosmetic infrastructure changes.
NRC Rep Reports Erin Collins (Oak Springs) stated that members of her neighborhood felt this year's budget process could best be described as a "cloak and dagger" process. As an example, concerned residents in her and adjacent neighborhoods had contacted in vain BCA Staff, Directors and the Finance Committee inquiring about the elimination of Waterside dock. Residents were told to make their remarks during BCA Board's Member Voice. When residents appeared at the October BCA Board meeting to speak against elimination of Waterside dock due to budgetary constraints, several residents were not allocated their 3-
Minutes of NRC Regular Meeting October 27, 2016 Page 2 minutes to speak. This, in E. Collins' opinion, creates a sense of distrust in the budget process. E. Collins also feels the BCA Board discussions are perfunctory because it appears the Directors have already privately discussed issues and made decisions before hearing from residents during Member Voice. The recent process has created a sense of concern over the expenditure of our assessment dollars, especially since one BCA Director was "shut down" when specific questions about the budget were asked. Chair's Report Chair McNeal asked the NRC Reps for their feedback on the 2017 recommended budget. McNeal noted that several NRC Reps had electronically commented on this year's budget process, and she explained that in June of this year, she was directed by the BCA Board that the NRC could not report on the committees. As the budget is under the purview of the Finance Committee, she was not able to report on budgetary issues this year. When asked if the NRC could report on the budget process, McNeal was told that she could only report on date, time and place of budget meetings. First Vice Chair Herbst clarified that the BCA Board told the NRC it could not attend committee meetings and report on those meetings, as it did on BCA Board meetings. An NRC Rep asked "why not?" Herbst responded that the BCA Board felt the Committee minutes were the official reporting of the committees' activities. In particular, Treasurer Friedel felt that the more indepth level of NRC reporting would inhibit the creative thinking of committee members. Herbst who said he has served on many committees personally feels that to some extent this might be true. An NRC Rep stated that the minutes didn't really state anything as they only reflect official actions (votes) taken by the committees. Herbst said he wasn't defending the Board's decision on this issue but was only clarifying the Board's position. He added that "one of the drivers for what feels like secrecy and abruptness" is the short timespan in which the budget must be approved. E. Collins claimed that since the Finance Committee holds open meetings, then anyone can attend and speak about it. Herbst agreed that individual residents were welcomed to attend Finance Committee meetings and report on those meetings as individuals. McNeal clarified the difference by stating the NRC is a committee of the BCA and not an individual member of the Association. She also stated that there was lot of discussion within the Finance Committee about the 2017 budget, as evidenced by the fact that their last two meetings began at 7 p.m. and continued until 11 p.m.
Minutes of NRC Regular Meeting October 27, 2016 Page 3 Several meeting attendees asked about the events of Waterside dock. McNeal explained that originally BCA Maintenance had claimed the dock (attached to a pavilion) was unsafe, as it appeared to sinking. This simulated the same appearance as the Sunday Park dock, which based on its constuction, is indeed unsafe. Resident users of the dock spoke against this safety opinion, resulting in two Oak Springs residents (construction engineers), Finance Committee Chair John Cardea and BCA Maintenance Supervisor Danny Ramsey visiting the dock. Upon review of Waterside dock, the dock was rendered safe but sinking due to natural causes, including the presence of hydrilla. As a result of resident interaction, the BCA will be issuing a request for proposal (RFP) for construction engineering services to review the safety issues and possible reconstruction of the docks to enhance their life span. McNeal reiterated that the dock at Harbour Pointe was unsafe and presently residents should avoid using it until repairs are done. Going forward, the Finance Committee feels all projects to be funded should first be vetted by the BCA committee that sponsored the project or that had oversight of the project. The Finance Committee's responsibility will be to prioritize these projects based on available budgetary funds. Another issue in which residents had impact on budgetary considerations were the drainage issues occurring in Gleneagles. Because the Gleneagles residents spoke before the Finance Committee to the BCA prioritizing this issue, they were able to move this project from near-bottom of the work list to near-top. It is McNeal's understanding that the BCA will be submitting a RFP for the work to be done in early 2017. E. Collins feels that the BCA should utilize more of its residents' skill sets, such as construction engineering in maintaining the Association. McNeal agreed but stated the Association's Financial Policy states that any project costing over $5,000 needed to put out for bid. Don Blom asked if the Vendor Preference Policy was still in place; McNeal replied that the policy was modeled after a State policy which has since been banned. Hence, the Vendor Preference Policy was removed from BCA Financial Policy. Blom asked about the status of the 4th of July fireworks. McNeal responded that this is another example of how resident feedback could impact an expenditure decision. Because numerous residents, including those who spoke during Member Voice at a recent Finance Committee meeting, spoke in favor of making a contribution to the Makos swim team and having the 4th of July fireworks, both have been reinstated in the budget. Owens commented that her neighborhood would be pleased to hear of that decision. Hamid Ghorashi commented that the BCA Board does not want the NRC to report on things that cause trouble; E. Collins agreed. McNeal stated that regardless of what your position might be on the NRC Task Force's recommendation, the NRC officers should review and update its bylaws and charter. If the NRC is a communications platform for residents, then both its bylaws and charter should clearly reflect that. [The following sentences are deleted due to a unanimous vote of the BCA Board at its Febuary 6, 2017 meeting]She recalled the incident of her reporting on CAM considering the re-
Minutes of NRC Regular Meeting October 27, 2016 Page 4 landscaping of the roundabout, Community Manager Bailey distributing a landscape design by Rupert and his stating that the design would cost about $50,000 to implement. Residents who attended that NRC meeting disagreed with this consideration and commented directly to the BCA Board and members of CAM. This created quite a stir. Several meeting attendees asked if the project got funded. McNeal replied that ultimately the project failed in Committee. McNeal announced that a $40,000 allocation has been designated for contract labor to clean up neighborhood open space. She thanked Ghorashi for his efforts in initiating this line item in the Operating Budget. Several meeting attendees asked about the $18,000 expenditure for BCA uniforms. It was explained that a multi-year contract included not only uniforms and jackets for nine maintenances staff but also cleaning of the uniforms. Herbst and Ghorashi felt that this was part of a "normal" service contract. Additional services in that agreement also included such services as providing toiletry items for bathrooms in BCA open space and pools. The Finance Committee has asked that this agreement be rebid in 2017. E. Collins expressed concern for the large variances in the Operating Budget, some more than +50%. She and her neighbors felt the depth of the variances may seem to indicate either poor budgeting or poor oversight on spending. For example, there is an 80% decrease budgeted for covenant violation income in 2017. McNeal explained that residents in violation were probably responding on a more timely basis to covenant violation notices. It was never the intent of the BCA to garner income from covenant violations but rather to have violations remediated. There was a question about +46% variance in 2017 Vehicle Insurance. McNeal explained that based on a recent RFP, the BCA was able to bundle the purchase of insurance to include workman's compensation, liability insurance and vehicle insurance. Although the vehicle insurance rate was higher than the previous year, the total bundle of insurance was less than buying these insurance separately. Herbst noted that purchasing the bucket truck probably also added to the cost of vehicle insurance. McNeal confirmed that there is a recommendation for a 5% assessment increase in 2017. She explained that the need for this increase was caused by the need to replenish the Replacement Reserve Fund. Several unexpected maintenance issues have arisen which needed immediate attention, e.g., marina repair and replastering of St. Ledger's and Harbour Pointe kiddie pools. These unexpected maintenance repairs may cause the Replacement Reserve to fall below the Board's minimum requirement of $1 million. E. Collins felt the BCA Board did not give sufficient overview of the 2017 budget or how it was derived. She asked if a Board member was not allowed to ask budget questions at Board meetings and the NRC was not allowed to report on the budget process, then how can one say this is an open process?
Minutes of NRC Regular Meeting October 27, 2016 Page 5 Michelle Gittens asked if the members of the Finance Committee had finance knowledge. Both McNeal and Herbst replied that many did - either professional finance work experience or had a tenure on the Committee such that they knew how the Association budget works. Herbst noted that residents feeling "a lack of opportunity for input" might be due to time management of the Board meetings, e.g., the open session of the October Board meeting lasted until almost 9 p.m., and the Directors meet in executive session after that. He reminded residents that the Directors were also volunteers, and the Board was inviting members to attend Finance Committee meetings to get their specific questions answered. McNeal remarked that the previous process allowed her to report on the Finance Committee deliberations, giving residents an overview of how the budget was being formulated. Task Force Recommendations on NRC Infrastructure Using PowerPoint slides, Task Force Chair Herbst led the discussion on work performed by the NRC Task Force on its infrastructure. Members of this Task Force are Don Blom (past BCA Director, Promontory Pointe), Hamid Ghorashi (NRC Rep, Walker's Ferry), Doug Wayne (NRC Rep, Rockport Landing), and Joe Herbst (NRC First Vice Chair, Harbourwood). Formed in early 2016, the Task Force has met eight times to reach its recommendations. The Task Force identified the NRC's charter goals as (1) enhance communications, (2) encourage member participation, and (3) provide a means for individual neighborhoods to communicate with the Association. The mission statement of this Task Force is to "improve communications and participation in Brandermill by providing community leaders with actionable recommendations to improve active participation in the NRC." The path taken by the Task Force to achieve the mission statement included contacting large HOAs to gather information about their analogous NRC entity and purpose as well as their effectiveness within the HOA. Their findings (see slide 9 of the presentation) included:
Most large-scale HOAs in central Virginia do not have a committee comparable to Brandermill's NRC. Of the HOAs contacted, only Woodlake reported having a comparable NRC committee. Most HOAs communicate primarily via e-mail. Most HOA committees handle volunteer recruitment for their own respective committees, and most report that their committees are fully staffed with volunteers. Most HOAs conduct surveys, as needed, on key issues. Most HOAs report that encouraging broad participation in community government is an on-going challenge. The HOA which came closest to having an organization analogous to the NRC is Lake of the Woods, an independent civic club. Generally, there are 30-50 members in
Minutes of NRC Regular Meeting October 27, 2016 Page 6 attendance at their monthly meetings which hosts informational speakers, and annual dues are $5/year. Based on the above findings, the Task Force identified four possible infrastructure options: (1) the NRC as a BCA committee under the authority of the BCA Board, (2) the NRC as a BCA committee with some autonomy, (3) the NRC as an independent organization, and (4) no NRC (NRC chartered functions would be performed by other committees). Herbst reported that there was confusion within the Task Force as to what the current NRC structure was; that is, did the current NRC structure have some autonomy or not. Since the NRC is the only BCA committee with its own bylaws, it has historically had a lot of autonomy. When the committees were re-organized in 2012, confusion arose as to NRC's autonomy to achieve its chartered goals. Former Community Manager John Bailey had recommended that the NRC be abolished, with the Marketing and Communications Committee taking over the Meet the Candidates event and the BCA communicating information to the membership. The Task Force evaluating the pros and cons of the above four options (see slides 11-12 of the presentation) decided on two structures: (1) the NRC as a BCA committee with some autonomy or (2) the NRC as an independent organization (see slides 13-14 of the presentation). There was unanimous agreement that an effective NRC must have autonomy/independence from the Board to (1) take independent positions on issues, (2) encourage diverse input to the Board, and (3) act as an direct representative for the residents. In brainstorming sessions, the Task Force discussed in detail the implementation of these two remaining options (see slides 15-20 of the presentation). These discussions included risks and success measures for both models (see slides 21-23 of the presentation). Risks for Both Models:
Continued lack of participation leading to the organization being non-representative Burnout of the officers Lack of new officers; officers with an ax to grind/personal agendas Legal exposures Antagonism and perceived competition with BCA Board and its committees overcoming tensions
Success Measures
Increased meeting participation A full board of active officers Well-attended monthly meetings Well attended regional "block parties" Productive partnership with the BCA Board and Staff
Minutes of NRC Regular Meeting October 27, 2016 Page 7
Good relationships with local government officials A high quality, brief monthly newsletter Establishment of active community service activities sponsored and funded by the NRC Increased subscription to the NRC e-mail communications including surveys An increase of at least 50% in its e-mail list
Recommendation Three of the four Task Force members supported creation of an independent NRC (see slides 24-25 of presentation) for the following reasons:
An independent NRC has the greatest likelihood of success to increase participation and improve communications. An independent NRC will reduce confusion about the NRC’s role and authority, leading to greater effectiveness. The Task Force unanimously agreed that the NRC must be independent of the Board to be effective. The independence achieved by an independent organization might possibly be achieved through an autonomous committee of the BCA. Both models have risks. The Task Force agrees that the greatest risk is continued lack of participation.
The one opposing Task Force member to an independent NRC believes that "Our existing NRC, with its charter and bylaws has autonomy. 'We are fairly autonomous and just don't know it. Unless something in the policies says the BCA can squash us at anytime, I think the NRC can proceed as we wish'." In addition to avoiding confusion in the role of the NRC and enabling the greatest chance for success, Herbst felt one of the biggest advantage in the present NRC becoming an independent organization would be its ability to work directly with local government. He cited the example of the Harbour Pointe Homeowners Association which has successfully worked with the County Planning Department in the past. NRC Discussion Michelle Gittens (Shallowford Trace) felt one of the NRC goals this year was to increase the number NRC Reps. The NRC now has 46 of the 80 Brandermill neighborhoods represented by either NRC Reps or NRC Rep Teams. Herbst asked why those active Reps were not in attendance at this meeting. Gittens believes Reps don't necessarily need to attend meetings because of NRC electronic communications. She felt the [budget] problems presented at this meeting could be addressed without utilitizing an independent organization to do so. "This is my home, and the problems that we've encountered have run the gauntlet. If you have problems with your own family, you deal with it …. If I have something to say, I feel like I can say it."
Minutes of NRC Regular Meeting October 27, 2016 Page 8 Herbst agreed with Gittens' comments, adding that every individual member can do what Gittens does and do it without the NRC. So, he asked "what does the NRC bring?" Gittens described her activities as NRC Rep for Shallowford Trace, e.g., hosting meet-and-greet events for new neighbors, ensuring neighbors are aware of Association news and events, and assisting neighbors with BCA policies and procedures to address neighborhood issues. She concluded her remarks with "I believe the [present] NRC is working for me." Sandy Schrecengost (Timber Ridge), a Brandermill resident since 1982, feels she has more ability to accomplish things as a resident than serving in any other capacity. As a resident, individuals can speak with any entity to achieve their goals, but to avoid frustration, they should be selective with their goals. Herbst agreed that the individual is the key to success in any endeavor. Erin Collins (Oak Springs) felt the previous two Reps' comments indicated the Association didn't need an NRC. She agreed that their described functions could be handled on an individual basis but expressed her concern about an individual taking on broader community issues without some type of structure. Herbst acknowledged the impact of individual resident comments during Member Voice on BCA Board decisions, but feels that on broader issues, an individual might need the support of some type of organizational entity. As an example, he cited E. Collins' neighbors speaking during Member Voice at a recent BCA Board meeting. Schrecengost recalled the issue of family daycare homes existing within residential neighborhoods and the overwhelming number of attendees who spoke at that BCA Board meeting. E. Collins feels that establishing an organization where Reps can coalesce on broader community issues "makes sense". Gittens summarized her feelings by saying that each neighborhood is different and consequently has different issues: "You do what you need to do as a Rep for your neighborhood." Richard Johndrow (Long Shadow) asked if an independent entity had already been established, what liability might there be for this entity, and how finances would be handled by this entity, including tax return filings. These issues are presently handled by the BCA. Herbst, however, feels that these issues could be easily handled in the establishment of an independent entity, probably as a not-for-profit civic organization. Johndrow and McNeal feel that liability is the biggest issue. Ghorashi commented that liability for not-for-profits in Virginia is very limited, unlike that of for-profit companies. Theo Collins (Harbour Ridge) commented that she became an NRC Rep largely because she wanted to meet people. She found her neighbors to be unfriendly and apathetic to what was going on in Brandermill. Then the issue of the marina fee arose, and neighbors quickly came together to acquaint themselves with the issue. T. Collins was overwhelmed by the cohesiveness of her neighborhood, as several spoke during Member Voice at the BCA Board meeting to address the marina issue. This gave her faith in her neigbhborhood. Herbst noted that this was a neighborhood-based project that didn't go through the NRC. McNeal believes that Brandermill is composed of varying eighborhood types, each with its own characteristics. "Most people want to live in peace; most people don't want to get
Minutes of NRC Regular Meeting October 27, 2016 Page 9 involved in the politics or the management of the Association." She feels that the only time you get this type of neighborhood activism is when things are directly impact a sufficient number of residents in that neighborhood, e.g., Waterside dock, marina fees and family daycare homes. She believes the role of the NRC is to have a Rep in every neighborhood who can monitor the impulse of that neighborhood and the impact of BCA Board decisions on that neighborhood. McNeal commented that although she does not oppose an independent NRC, but if voting at this meeting, she would vote to strengthen the current NRC. This would include making the NRC Rep the go-to person within a particular neighborhood so residents could solicit information from them, and the Rep would also gather feedback about BCA Board decisions. She believes that the key function of the NRC Board is to objectively communicate on BCA governance. Ghorashi felt that the operations of the current NRC reflect (1) communicating to residents on BCA Board and Staff governance considerations and (2) neighborhoods organizing independently to communicate with management. It is this latter point that he feels is inefficient. He feels the NRC Board should hear about neighborhood issues, uncover any commonalities and present those common issues to management for action. He feels that an independent NRC would facilitate bringing issues before management for action. It would also enable the NRC to publicly support candidates running for the BCA Board, something prohibited by the current NRC structure. McNeal noted that there is one commonalty among all the NRC Reps: they are all independent individuals. Historically, the Reps did bring their issues to the NRC Board where its officers often worked with BCA Staff to resolve issues and if these were not satisfactorily resolved, took the issues before the BCA Board. McNeal acknowledged electronic communication with many Reps whom she feels are active but often do not attend meetings. She feels electronic participation is becoming the way of the 21st century. Herbst commented that the current NRC lacks credibility with the BCA Board because Reps do not physically attend NRC meetings. He is discouraged by the lack of volunteers to serve on the NRC Board and feels it unhealthy for any organization to have the same two people serve in the same key roles year-after-year. Becoming an independent NRC would be a significant change and perhaps a little daunting, but Herbst feels the change would be for the better. Blom suggested that existing Brandermill civic organizations can do some of the things proposed for the independent NRC, such as supporting specific candidates for the BCA Board. He stated that although it would be easier to form an independent NRC if the current NRC members agreed to it, in the end, any group could form an independent NRC. McNeal clarified that the only entity that could abolish the NRC is the BCA Board. The current NRC is a committee of the BCA Board and reports directly to the Directors. She
Minutes of NRC Regular Meeting October 27, 2016 Page 10 continues to feel that technology allows NRC members to participate without physically attending meetings. E. Collins reminded McNeal of the Board's decision that the NRC could not report on committee meetings, forcing her to attend each individual committee meeting to learn of committee activities. McNeal replied that the decision did not prevent her from reporting on the committee meetings as an individual, something she had considered. However, it was important for her to evaluate the impact of this lack of information on the NRC membership, and McNeal now firmly believes the distribution of information is important to the governance of the Association. Blom noted that as an individual, McNeal could not use the NRC e-mail list and thus would have received far less attention. McNeal stated that her individual communication would have been sent to people listed in the directory, the same method used by various Board candidates. Another methology suggested by Herbst was to print and deliver flyers in mail chutes. T. Collins cited the main item that spurred her neighbors about the marina issue was Herbst's letter to the BCA Board. McNeal explained that to fully implement the communication needs of the NRC membership, the bylaws needed to be updated. Both E. Collins and Herbst noted that the bylaw changes would need to be approved by the BCA Board. McNeal felt confident that she could work with the Directors to get the necessary changes ratified, as the NRC did so in 2012 when the bylaws were last approved by the BCA Board. As a working parent with a 3-year-old, E. Collins disclosed her voluminous efforts to overturn the BCA's 360-property inspection program as arduous and tedious. Her letter to the BCA Board received not response, and she felt harrassed by BCA Staff for more than nine months. After almost a year, the BCA Board finally declared the program illegal, and new inspection practices were adopted. Although her neighbors supported her position, E. Collins claims she could have used an entity's help to pursue the legality of the 360property inspection program. Herbst noted that this was an example of the need to have an organization advocate for neighborhoods, particularly on broad-range issues. E. Collins also recalled her attending a Finance Committee meeting and asking to view the Association's balance sheet. The request was denied. McNeal noted that the NRC did advocate for the balance sheet, and although it took approximately six months, the balance sheet is now part of each Board packet containing financial information. Herbst stated that President Charlie Davis and Directors Greg Pearson, Frances Hillman and Ann Hunt have inquired about the work of the NRC Task Force, and he feels that the work should be forwarded to the entire BCA Board. McNeal stated that the Task Force work (including PowerPoint slides) would first be forwarded directly to Reps for study. NRC Reps should feel free to contact either McNeal ([email protected]) or Joe Herbst ([email protected]) with questions and/or comments. It is now up to the NRC Reps to vote on how they choose to proceed. This will be an issue to be voted upon by the NRC Reps at its January 2017 Annual Meeting, and the
Minutes of NRC Regular Meeting October 27, 2016 Page 11 result of that vote along with the work performed by the NRC Task Force will be presented to the BCA Board.
Adjournment There being no further business, the meeting was adjourned at 9:24 p.m. Respectfully submitted,
Mamie McNeal, Chair
February 16, 2017 Date
