January 18, 2012 @ 08:13 PM

Hi Skip,
 
Thank you for bringing forward questions regarding Las Palmas HOA  and its on-site operation. I have answered the questions you put together on behalf of other owners in bold red outline and will have Ross post them on our official Las Palmas website for all to read at  laspalmashoa.com
Communication is the key to any successful organization and it is this Boards goal to improve our communication within the parameters of our limitations. The reality is, like many associations on Sandy Beach, almost all of the 172 owners  in Las Palmas are “absent owners”. 
 
The demographics of these owners official residence is wide spread . We have owners from all over the United States as well as Canada and the local areas in Mexico.  Our current board is made up of owners from Yuma , Arizona , Phoenix , Arizona and  Farmington Hills Michigan.  This Board is in constant communication between phone, e-mail and onsite meetings. All , for the purpose of improving the overall operation of Las Palmas while providing the lowest possible fees to the owners.
 
When I first came to an owners meeting in November 2007 the average owner’s common fees for everyone were $350.00  and the operating budget was around $800,000.00 one of the highest in Penasco. For 2012 the board will be proposing a budget that will bring our operating budget around $598,000.00 . The  lowest level it has ever been in Las Palmas HOA history not to mention the lowers fees for all our condos and villas on Sandy Beach.  
 
The most important communication for the HOA and the owners is  the annual  “Owners Assembly Meetings”  
This is where decisions are made and your communication counts the most. This is the time where the Board reports to the owners on the state of our resort  and also receives direction on how to move forward in the coming year. High attendance at our owners meeting is critical to ensure the board is representing  direction from  the majority not the minority. Attendance can be in person or with proxy. If this is not done, then all the communication in the world after the fact will not help.
 
Most of these questions put to me have been answered either in our annual newsletter , via e-mail for those that have e-mailed the board members  or posted in board meeting minutes located on our  HOA website  at laspalmashoa.com
 
The Las Palmas HOA communications structure is always improving and will only continue to improve with owner participation. I welcome all of you that have question and concerns about our association to join us at the owners meeting and let your voice be heard.
 
We can always do better and with your help we will! Looking forward to seeing all of you at our meeting 10:00am Saturday January 21,2012.
Dan Dimovski
Las Palmas HOA President

From: Skip Pence

TO:Las Palmas HOA Board  1/11/12

“The board is always available to answer questions, discuss problems, work out any and all issues with owners. Please just ask!!”  So here is a compilation of questions from several owners which hopefully this letter and the board’s response will be posted on the Las Palmas web site prior to the January meeting for all owners to review.   The questions will also be posted on http://finance.groups.yahoo.com/group/LPOG/   This is a Yahoo Group for Las Palmas owners.  Any owner is welcome to join.

 
 
1)  Board writes on 5/13 “APPROVED a split purchase of refurbishing the existing lounges for a complete cost of sandblasting, coating and cushions for $17,632.00.  and then recently “Purchased 100+ new lounge chairs and tables for the pools, as the old ones were not cost effective to refurbish”  Yet it appears there are a bunch of refurbished lounge chairs of the roof of one of the small buildings near the front of the property.  Please explain
 
The Board did purchase 120 high end Chases with 60 small side tables for between chases. However we are still looking for a high end cushion for theses chased that would withstand this climate. We have been testing a few varieties in the last 6 months but found they were not holding up to the climate. The board wants to make sure we purchase wisely and make the right decision since this outdoor furniture is to last another 8-10 years. The board is looking for a high end sumbrella material cushion proven to withstand the dessert ocean climate. The Board expects to have these cushions  prior to Spring Break. In the meantime we have placed over 20 new Chases with the current cushions around the clubhouse along with the small beverage tables. The board will not make any decisions on the old units till we have the new cushions.  At this time the old chases are being stored wherever possible. Storage on the  roof of the  machine room is only temporary and we are currently working on an alternative solutions.
 
 
2) Why are all HOA members required to pay for a $50 incentive for those who wish to have tankless water heaters?  Mine were replaced prior to that announcement and before they leaked as preventative maintenance.   And besides drains are being installed in all laundry rooms to prevent damage to lower units.
 
The incentive of $50.00 the Association provided was in conjunction with the supplier who also provided the same amount as a discount. The purpose was to motivate and give an incentive to owners of Las Palmas to change their water heaters to high efficiency and minimize the flooding possibility to their unit as well as others. The board want to avoid another incident such as condominium Grande 705. There was substantial damage the that unit as well as  two other condominiums below, floor 6 and 5.
It is in the best interest of the HOA and all owners to encourage a change to on demand high efficiency low flooding risk water heaters.
Additionally,  as a prevention measure floor drains were installed in the laundry rooms from the second floor and up to prevent damages to the condominiums below for those  owners who did not purchase the  new water heaters and for all condos that may incur a leak from the laundry sink or washing machine hose connections. In the event of a water leak from anywhere in the laundry room the water overflow will go through the drains and not cause damage. This will save the owners and the HOA substantial costs and hardship. and not having to pay money in case of damaging the condominiums below.
Note: All owners with laundry drains need from time to time to pure some water to ensure the p trap is always full of water and prevent drain odor.
 
3) Board writes: “Plan for allocation of funds to replace balcony railings with non rusting aluminum over next five years.”  Are the existing rails going to be painted till this is done or are we stuck with rusted ones that have paint droppings from when the building was painted for up to 5 years?
 
There is a plan to replace the condominium’s balcony railings with non rusting railings and tempered glass but this is still under the process of budgeting and approvals. This project will not take place this year, but the current railings will be given maintenance or getting new paint in the coming months.
 
 
4) On 12/02  two people ask:  “Given this was done as a cost saver, how can we find out the savings'? Osvaldo was a contract expense prior to the change, yes? Did Francisco resign or was he terminated?”  “What was the cost savings in the two positions - a total savings of Francisco's position?”  The boards response was “The Board will be posting and emailing an official response to address your questions and concerns.”  But I never saw a response, so please respond to these questions for us now.
 
As per  Las Palmas CCR’s 3.9.4 Designate, hire and dismiss the personnel necessary for the maintenance,operation, repair, replacement of the Common Area and provide for services forth Members and, where appropriate, provide for the compensation of such personnel and for the purchase of equipment, supplies and material to be used such personnel in the performance of their duties;
 
3.9.11 Employ, hire and dismiss such employees as they deem necessary and to
prescribe their duties and their compensation;
 
It is not in the best interest of the HOA and the owners that it represents to not get into too much detail regarding the departure of a Key employee of Las Palmas. What is important is that there was a mutual agreement between Francisco and the HOA Board. Both parties agreed to move forward in the best interest of Las Palmas. Francisco’s position was eliminated and a new Las Palmas Management position was created for quality control and cost efficiency reasons. The Board of Directors takes such matters seriously and spent a substantial amount of time to ensure all appropriate steps were taken into consideration.  
Additionally, the savings for eliminating the Manager position and creating a Comptroller position responsible for both Management of  Operation and  Finance are substantial.
The HOA expense for Osvaldo Beltran was $18,000.00 per year just for the Accounting and Taxes. Francisco Montano expense was $42,750.00  per year including all benefits for being the Administrator. In the new onsite Management structure the expense per year for all management services will be $40,800.00 . The expense amount of $28,560.00  Osvaldo Beltran as Comptroller and the amount of $12,240.00 for Mr. Leonardo Leal Lopez as Las Palmas Accountant.  
Direct savings in the new Management structure is as follows:

Old Management Structure
FRANCISCO MONTANO                                        $42,800.00
ACCOUNTING & TAXES                                         $18,000.00
                                                                              -----------------
Total Expense                                                       $60,800.00
New Management Structure
OSVALDO BELTRAN & LEONARDO LEAL                         $40,800.00

TOTAL DIRECT SAVING (Due to Re-structure)    $ 20,000.00
 
 
5) Board writes: “A new owner Welcome Packet is also being prepared and will be posted when it is ready”  I do not see one posted.  What is the plan to give new owners a warm welcome?.
 
The HOA is still working on this package. There have been many delays due to other pressing operation issues in 2011. The new Management  Administration is currently working on this package and will be posted by the end of February 2012.
 
 
6)  Board writes:  “APPROVED to hire an engineer for a feasibility study for solar heating for the main pool at a cost of no more than $15,000 for the study”   How much was spent and why?  Most solar companies will provide a free engineered study.
 
The HOA Board received direction by the owners in the last owners meeting take the next step for using alternate energy such as Solar energy for heating our main pool. The direction included spending up to $15,000.00 if necessary for a comprehensive Solar Engineering blueprint that included a feasibility study on what was the best solution for our resort. To date the Board has not spent any  money regarding this project.
The Board knows how important this project is to our community and and is very cautious in taking the next step. The project will be a priority in 2012. Solar heating proposal has been something that has been discussed for the past few years in owners meetings. Since we need to implement some type of system that helps reduce the propane gas consumption in the pool heaters, and since there is a substantial number of owners that want the pool heaters  during the winter periods it is the goal of the Board to move forward  in the best case scenario but only spend money wisely and only when necessary. The board has already received a feasibility study in 2010 from a company that proposed to install the system. A feasibility study did not guarantee a successful solar system. We are looking or a blue print and an Engineers architectural full analysis with proof of success. This costs money and the Board will only move forward when we have a consensus.
 
 
 
7)  Did the board vote themselves a reimbursement allowance for travel expenses to attend board meetings?  What has the cost to the HOA been?  If a board member cannot afford to come and enjoy Rocky Point, then I am sure there are others capable of serving, who could afford that without expense to the HOA.
 
As a Board of Director for a second term and the current President of the Las Palmas HOA association I agree with our CCR’s regarding this item. Owners elected into non compensating positions like ours have the right to be reimbursed for their actual expenses incurred in the performance of their duties, this includes travel expenses for HOA business.
I can tell you from experience, that I have stopped coming to Las Palmas for vacation. In 2011 the HOA was faced with several operational and legal matters. All required substantial time , effort and work that no board member received any compensation for their services. It is because of these efforts that the state of the HOA is solid and the fees for 2012 be drop for the 4th year in a row. Each board member has the right to their expense reimbursement and I personally choose to exercise it. On this and all other issues the board is very transparent.
As per section 3. 3.4 of our Las Palmas CCR’s: “ any director may be reimbursed for his actual expenses incurred in the performance of his duties.”
 
8) What are the leased space agreements for Dolphin and Long Realty?  Are they the same?  If not, why?
 
Consistent with the direction of the last Las Palmas  owners meeting in February of 2011, The HOA entered into a Rental Agreement with Long Realty/Castaways Vacation Rentals to rent Clubhouse office space, the former Developer Sales Office for a four month term with an option for a longer term on a move forward basis.
The details are as follows:
TERM OCT 1, 2011 to JAN 31, 2012
•To rent the space formerly leased by the Developer and then Dolphin Rentals as a sales office.
•Tenant agrees to pay 1% commission of all successful real estate sales within the Las Palmas community
•Tenant agrees to pay their share of utilities.
•Tenant's nature of the business is  real estate sales, long term rentals, and short term rentals and other related services to Las Palmas owners.
•Castaways must collect impact fees consistent with the impact fees collected by Dolphin Rentals, should Castaways complete any short term rentals within Las Palmas during this period.
•Castaway and its representatives are to not solicit Dolphin Rental onsite guests and/or customers regarding short term rentals.
•Long Realty/ Castaway Rentals has an option for a long term rental agreement to commence February 1,2012 , the end date to be determined. The rent amount is to be consistent/ equivalent to the same dollar rate per square foot as other tenants in the clubhouse.
Additionally, Long Realty/Castaways Vacation Rentals agreed to conduct a feasibility study on how a second onsite rental company can benefit the owners of Las Palmas. The Owners of Long Realty/Castaway have agreed to make a presentation to the General Membership regarding the results of their study and the services they offer. This will take place at our next Owners General Assembly Meeting on Jan 21, 2012.
 
 
9) Was rent raised on the restaurant for Mickey anytime during 2011?  If so, why?
 
No, rent was never raised. ,Chef Mickey rental agreement was based on percentage of revenue as per  his wishes. He only wanted to operate the Food part of the Food and Beverage.  He paid 10%  of his sales as rent. Then he requested to sell wine to help his sales and the board approved it,  later in 2011 requested and the board approved a changed to 5% during the slow season. The board approved it and signed an agreement. He paid rent based on sales. If he sold nothing he paid nothing. Then in late  2011 he gave his notice to leave Las Palmas on December 10,2011 and in doing so break his agreement with the HOA. Then he said he would stay if the rent was $200.00 , then he said he wanted the rent to be $0.00 (zero). The board finally decided that it would be in the best interest of Las Palmas if we look for another operator.
After some search for operators, the board identified the best candidate for the Food & Beverage  vacancy and picked Mr. Jose Juan Rodriguez. Chef Jose  is a teacher at the University of PuertoPeñascoin gastronomy and his experience in past restaurants is noticeable with his new restaurant decor and this culinary presentation during the soft opening of his new restaurant “ Med” in Las Palmas. Med has been open since January 11,2012
Note: revenue received from the restaurant for Chef Mickey was used to support the restaurant by purchasing outdoor heaters for his customers, replacement fans ,bar chairs etc.  Additionally, the HOA gave support  the restaurant by providing all of the HOA food needs including owner appreciation functions. The HOA believes in working with the F&B operator as much as possible since an onsite food outlet favors Las Palmas and its owners. The HOA also believes that Operators need to respect the HOA and work with the HOA. The HOA will continue to support the new operator in the same capacity.   
 
 
10)        Why did the board promote election of a current board member along with unsubstantiated derogatory remarks on an owner running for the board?
 
It is the Board’s policy as well as mine, to encourage participation of all owners. It is important that owners get involved this includes running for office. I welcome yourself and anyone else to run for an HOA elected position. It is not the board that decides on who is elected but the owners themselves. This is why it’s important to have maximum owner participation during the owner meetings. I trust the owners that take the time to ask these questions also take the time to come to the annually owners meeting or at least submit their proxy to make a difference and give their input.
 
11)        Why were the grounds, common areas, walkways and elevators so poorly maintained last summer during the high usage months?  Has this problem been corrected?  Is it possible to have personal clean up common areas between 4 & 6AM, so owners and tenants can wake up to a clean complex?
 
 Dolphin Rentals promoted heavily  to the Mexican market . Rental occupancy was very high during these months and the number of occupants per unit rented were at a maximum. The onsite HOA operations management was not successful in keeping up with the additional wear and tear the added volume created. For 2012 the Board has put in place quality control measures and has a new onsite management team to prepare  the next high season.   
 
 
Thank you in advance for your response.  Again, please respond to these so we have answers prior to the meeting and do not have to take up valuable meeting time.
 
Compiled by Skip Pence, Bonita 701 & 703
 
 
From: Skip Pence <skippence@gmail.com>
To: Jaana Ponzio <jaanaponzio@yahoo.com>; Dan Dimovski <danddimovski@yahoo.com>; Bruce Turner <yumacop1@yahoo.com>
Sent: Wednesday, January 11, 2012 8:59 PM
Subject: questions for board members