A QUESTION OF LIABILITY

The Board of Directors has repeatedly stated that the Meadowcreek Association is out of money. Some have stated that they cannot even pay the light bill. This is the reason they feel the need to increase the maintenance assessment for single family homes by a mere one hundred dollars per year. The additional fifty thousand dollars collected will solve all of our problems they say, and allow for an actual surplus to accumulate. What they are reluctant to do, however, is explain where and how the current assessments are being used, other that a summary (by category) report provided on an irregular basis (and not posted monthly on the website).

The reality of the matter can be somewhat explained by the 2008 annual financial report and the 2009 to date report recently provided. It appears that a high percentage of expenditures have gone out for repairs on the Town Homes. In fact, during this period the income from the Town Homes has been $104,136.01 while the expenditures have come to $222,616.01 or a shortage of $118,480.00 in this time frame alone. This is simply not acceptable, and many questions must be addressed.

First, what is the cause or factors behind the repair expenditures? Can some blame be laid on Hurricane Ike? Did storm damage exacerbate existing damage and make repairs more expensive? What exactly caused this amount of damage in the first place?

Second, are all repairs now complete, or can we expect more large expenditures in the future? Were the repairs made in a professional manner in full compliance with city codes? Was the contractor selected professional, bonded and insured? Were multiple bids solicited from pre-qualified contractors? Are all owners satisfied with the results, or can we expect legal action from some owners to force the Board to comply with the current deed restrictions?

Third, did the Board of Directors have an insurance policy in effect to cover some of the damages? Section 12 of the deed restrictions covering the Town Homes requires the board to purchase, and the owners to pay for this type of coverage. If the insurance was in place, how much of the expense of repairs did the policy pay?

Last (and probably not least), why does the Board expect the single family homes to assume this burden? Our deed restrictions place no legal burden on us to pay for the operating expenses and repairs of the Town Home section. We have our own expenses (insurance, taxes, trash pickup, utilities, etc.) to pay for, along with our association dues.

It’s time for some answers. Perhaps some Town Home owners can sign on and let us know what’s happening.

HERE WE GO AGAIN

Well, it's kinda official. The board, led by Prez Doug Parker, has decided that they just have to have more money to operate. While they still have not provided an audit to show where the current dollars are spent, they find no fault with asking for more.

So, you will probably soon have someone knocking on your door and asking you to sign a new petition to increase the annual maintenance assessment for single family homes only to $280.00. Remember though - we pay for our own trash pickup, so this will bring our annual charges to $489.36 (If Waste Management never raises our fees). This compares to $396 in Quail Valley.

Also, the amended restrictions allow for a special assessment that is approved by a simple majority vote of members (and proxies) present at a meeting called for to approve same. The amended paragraph reads as follows:

Special Assessments for Capital Improvements. In addition to the Annual Maintenance charge Funds, also known as Annual Maintenance Assessments authorized above, the Association may levy in any year, a special assessment applicable to that year only (a "Special Assessment"), for the purpose of defraying in whole or in part, the cost of any construction or reconstruction, unexpected repair or replacement of a described capital improvement upon the Association’s common areas, including the necessary fixtures and personal property related thereto, or the facilities provided that any such assessment shall have the assent of fifty-one percent (51%) of the votes of the members of Meadowcreek Association, Inc. who are voting in person or by proxy at a meeting duly called for this purpose, written notice of which shall be sent to all members not less than 30 (thirty) days nor more than 60 (sixty) days in advance of the meeting setting forth the purpose of the meeting. Said Special Assessment shall be made a part of the above described vendor’s lien.

Note that no limit is specified in the above, and also remember that the townhomes and patio homes are not included in the modifications. So - if the Board, voting proxies, wants to spend a million or so on a new ice skating rink.....We have to pay for it or suffer the consequences.

While most agree that $100 is not a lot to ask for, it's still not unreasonable to ask where the money is going. This increase will bring in over $50,000 additional dollars for the board to play with, and that IS a lotta money. In fact, the total collected each year will be very close to $300,000 and that my friend is a heck of a lotta money!!!

THE PLOT THICKENS

As many Meadowcreek neighborhood readers are aware, board President Doug Parker indicated in the November 12th meeting that the assessment increase and changes in restrictions and covenants was "off the table". To most of us this would indicate that they were no longer being considered.

Now it appears that a meeting was held at the clubhouse on November 17th, with rumors being that this was a "new committee" meeting to discuss, guess what, changes in the restrictions and covenants and the annual assessment increase. Hopefully someone who attended this meeting will take the time to comment and let everyone know exactly what the purpose of this meeting really was.

It's past time for the board of directors to understand what transparency really means. As residents of Meadowcreek, we deserve full disclosure and the ability to make informed decisions regarding how we are managed and governed. The members of the board are not our parents - and we are not children.

In fact, it's time for the board to make all of the financial transactions that have depleted our resources public. A report that simply shows totals, and not the line items that make up the totals is long overdue. Where exactly is our money being spent. How about an audit Mr. and Mrs. Board Members. An audit by a real CPA would be appreciated, and perhaps explain a lot of things. Before the December meeting would be nice.

And speaking of the December meeting - remember to be there on December 10th (second Thursday) and observe and listen. You might even try and get your unanswered questions answered. Unless the board decides to duck behind the executive session curtain again.

HOMEOWNERS RESPOND

As many in our neighborhood now know, the Board of Directors of the Meadowcreek Association, Inc., recently initiated a campaign to raise the annual maintenance assessment in Sections 1, 2&3 and 5 by $100.00 per year. What many did not know is that the intent was to also revise the Covenants and Restrictions that govern property in the sections.

A "grass roots" movement was started to inform residents of the actual intent of the board. After an initial meeting at the Black Eyed Pea, individuals volunteered to walk the individual sections, talk with residents, deliver handouts, provide needed supplies and do what was necessary to get the message out.

During the week prior to the November Board meeting held on November 12, 2009, literally hundreds of hours of labor resulted in the largest crowd to attend a homeowners meeting in years. We were elated to see a reporter/photographer team on hand to film the meeting for a news segment on Channel 13 (ABC) Houston. The board appeared to be somewhat surprised, and was totally unprepared to meet the challenge. Documentation was limited, and seats were few. The only area in which the Board was prepared was in providing police protection (three officers were present for crowd control).

As members arrived they were asked to sign in on forms provided. An additional form was provided for those who wished to address the assembly (with a 2 minute time limit). As the meeting progressed, the attorney representing the board was observed asking the reporter from Channel 13 and his photographer to leave. They were told that the clubhouse was private property, and that they needed to leave the property. Many of the homeowners in the immediate vicinity advised the attorney that the reporter was an invited guest, and the end result was that the media representatives were allowed to stay and film the meeting.

During the meeting, board president Doug Parker attempted, with limited success, to defend the boards position regarding the increase in the annual assessment. He met with much less success when asked to defend the changes in the Covenants and Restrictions. Several members that had signed the "petition" for the board insisted, by both voice and letter, that their signatures be removed from the documents held by the board.

Finally, President Parker relented, and advised the audience that the Board would table the petition and make do with the status quo. You can view the news report by visiting the following link:

http://abclocal.go.com/ktrk/video?id=7115716

Then, without allowing a single person who had signed the speakers log to address the meeting to do so, President Parker decided to go into executive session, effectively shutting the residents down. What a surprise. Fifty or so residents left and held an impromptu meeting in the parking lot. It doesn't appear that too many were happy with the way the meeting went. More is sure to follow.