Why Continue the Legal Battle?

Every once in a while it is good to review a course of action.  So it is with our lawsuit against some of the past/present members of the AV Board, Manager Harmer, Accountant Dunnavent, and Election Chairman Cea.   In doing so we reflect back to 1991 when we had a group of people in control of the Apple Valley Property Owners Association, who were not responsive to the needs and requests of the majority. This resulted in an uprising by the people and under this pressure there were five Board resignations. 

After a new Board was elected we had about four good years of concerned and conscientious Board leadership.  However that period did not last.  Out of the shadows some of the same people (who had caused the 1991 unrest) and their cohorts began once again entrenching themselves in the running of AV.  This time they were even more determined in reaching for more power and control and they have been successful.   Thus an impasse has been reached.  They will not represent all of the property owners, but instead use the Association’s money to further entrench themselves.  Thus this lawsuit must go forward so that legal precedents are established to protect present and future owners from further abuses such as the following:

Borrowing money without Board Approval

We know for a fact that former Board Presidents Bob Sichel, Earl Owens, and Carl Holmes have violated our Covenants by borrowing hundreds of thousands of dollars without Board resolutions.  What about the $250,000 loan that was on one of our bank statements that the Board has continually denied?  However, when a subpoena was issued to First Knox Bank for this information there was a flurry of actions from the AV Board and First Knox Bank requesting that this information be denied to the plaintiffs.    Why would you request of the Court that information be denied if there is no $250,000 loan?   Also, under what authority is Jeff Harmer co-signing loans?

Selling off AV Common Property

A piece of lake front property was sold for $500 so that a private owner could enlarge his home. An easement was given to the Knox Energy Cooperative to provide gas to the new East Knox High School even though the old high school had gas service which could have been extended to the new school.  Associated with this issue are unanswered questions about the conflict of interest between the AV Board and the Knox Energy Company.   To allow the unauthorized and unchallenged disbursement of our property is setting a precedent for more losses of AV Common Property!

A Board that not only ignores its fiduciary responsibility, but even votes that it cannot have full financial information. 

How can a Board vest all its financial responsibility in a manager?  How can it place the Association in jeopardy of lawsuits regarding salaries, theft, and shortfalls?  This financial negligence on the part of our Board needs to be corrected.  Right now we do not know who actually has the control of our money?

An election process that is vulnerable to corruption. 

If our vote is meaningless, then what input and protection do we have?

Much more could be said, but these are the major issues from which we must have protection.  A temporary turn around in the Board will not do it…we have been there…done that.  There will always be a new crop of ill guided Board members out there waiting to take over whether it is from greed, desire for power, need for acceptance, or just stupidity. We need legal rulings to protect us from them!

Steve Elliott, Editor

Committee Meeting Notes

Budget and Finance Committee:   February 25, 2009   Bob Sichel is Chairman and members are, Dick Anderson, Bob Blue, Betty Cea, Moe Cea, Margaret Elliott, Steve Elliott, Judy Fagert, Bob Meldrum, Dick Myers, Marlyn Reiser, Kathy Riley, Nellie Robinson, and Angie Ward.  Other attendees were Harmer, Dunnavent, Pirics, Gordon, and Patton.

The Committee reviewed and approved the January Financial statement.  There was a transfer of $100,000 this month from the operational Edward Jones account and that leaves us a total of $297, 833.   After adjustments the January expenses were $17,000 greater than what was budgeted.  Architectural income is less this year because there is less building taking place.  Employee benefits were greater than what was budgeted because of the increase in the cost of their insurance.  The AV real estate taxes have increased for this year.  There was no Repair or Replacement Schedule in this statement since so many of the projects have been cancelled because of the budget cuts.

The December Financial Statement will not be reviewed until the March meeting.

Property Committee (March 2, 2009)   Judy Fagert and Julie Arnold are Co Chairmen and members are Ed Arnold, Mary Cornett, Liz Dumaree, Margaret Elliott, Steve Elliott, Chris Gustafson, Sharon Harper, Sharon Holmes, Jim Jennessee, Fran Kovach, Vince Marcellino, Kay Myers, Lorraine Stanson, Don Ward, Carol Webb, and D.J. Young.

Floral Valley, which was scheduled for inspection at this meeting, was closed.  Therefore the meeting was cancelled.    

Lake Committee (March 2, 2009)   Bob McLaughlin is Chairman and members are Bob Blue, Curt Campbell, Maurice Cea, Margaret Elliott, Steve Elliott, Judy Fagert, Bill Gordon, Roy Landskroner, Bob Neumann, Sally Slonaker, and Carol Webb.

The Fish Club reports that their Casino trip is scheduled for April 22.  Sally also reported that money earned by the Club has been used to purchase a new fryer, which will be donated to the Association.

Under old business the Committee first discussed posting signs at the Marina and at the Cemetery for a 9 inch Crappies limit. The next item was that BBC has been here and in about six weeks we should get the dredging report. Following this discussion the committee members were asked for names of owners who might be interested in heading up Lake Patrol.  The last topic covered was that AV no longer has a licensed weed control employee and since Fast Eddie’s is getting a weed control license they will be doing our dock weed control.  It was mentioned that AV will not be subsidizing weed control this summer and the dock owners will responsible for the full cost of the treatment.

Steve Elliott, Editor and Publisher