December 17 BOD Meeting Recap

Somersett United
Somersett United

The SOA Board of Directors (BOD) held their bi-monthly meeting at The Club at Town Center (TCTC) on December 17th, the agenda for which may be accessed by clicking on the following link:

December 17 BOD Meeting Agenda

A brief recap on some of the agenda items follow (number scheme pertains to agenda item):

3. a)  Election of Officers:  President – Tony Fakonas, Secretary – Curtis Chan, Treasure – Ray Lee, VP’s – Daniel Kirby & Chris Huff.

3. b)  Committee Liaisons:  Communication – Curtis Chan & Chris Huff,  Finance – Ray Lee  & Curtis Chan,  Strategic Planning – Tony Fakonas & Chris Huff,  Community Standards – Ray Lee & Tony Fakonas,  Country Club – Tony Fakonas & Danielle Kirby.

4. a) Community Manager: Melissa Ramsey announced that she has accepted a position as Regional Manager for the SOA Management Company (FirstServices Residential). Assistant Community Manager Lauren Stemmier will serve as Community Manager until a permanent replacement is announced.

4. b) Communication Committee:  Initiatives for 2104 include; 1) setting up of “Town Hall” meetings, 2) establishment of homeowner discussion groups/forums/FAQ’s on the SOA website, 3) expanding SOA email distributions.

4. e) Election Committee: Recommended installation of “ballot boxes” at TCTC and Aspen Lodge for future elections to facilitate convenient drop-off.  Received tentative approval of BOD pending development of a process plan by the Election Committee.

4. f) and 6. b)  SGCC Agreement Status:  Due diligence underway, nothing new to report different from what was presented at the December 4 homeowner information meeting (see previous SU post article of December 5)

6. a) Litigation Status: A new lawsuit has been filed against the SOA, SDC and Toll Bros regarding common area construction defects affecting homeowner properties. Status of this and other litigation issues will be covered in an attorney letter soon to be posted on the SOA website. The issue associated with the alleged underfunding of reserves on the part of the Developer is still open with nothing new to report. The BOD again reviewed the Moana Settlement reported on at the last BOD meeting.  For those who are interested in details, the agreement may be accessed by clicking in the following link: Moana Settlement Agreement.

7. a)  CC&Rs Vote Extension: Extending the CC&R amendments vote deadline to February 14, 2014 was ratified. Less than 1000 ballots have been received to date, which is not enough to fulfill quorum requirements (i.e., a “yes” vote of at least 51% of all unit owners is required for passage).

7. c) thru 7. j)  All new business items submitted for approval were approved, with the exception of 7. f) “Transfer of $100K to Reserves”, which was tabled pending further discussions with the Finance Committee.

December 4th Presentation on SGCC Agreement

Somersett United
Somersett United

The second homeowner information meeting on the proposed new agreement with the Somersett Golf & Country Club (SGCC) was held at The Club at Town Center on December 4th, with approximately 30 attendees. The next meeting is scheduled for the Aspen Lodge on January 14th at 5:30 PM.   If you have not attended one of the previous meetings, please put the January 14 date on your calendar.

The presentation material was the same as the November 23 meeting, which may be accessed via our November 27 Blog Article entitled “Proposed SOA SGCC New Agreement”.  Some of the more pertinent Homeowner questions/comments following the BOD presentation are summarized below (our apologies for any errors in our paraphrasing):

  • Question – The property deed from the Developer to the SGCC conveyed 900 acre feet of water rights to the SGCC.  However, the Letter of Intent (LOI) calls for purchase of approximately 400 acre feet, what happens with the other 500 acre feet?  Response – The BOD was not aware of the 900 acre feet reference, will look into it during the due diligence period.
  • Question – What is the Developer getting in exchange for letting go of his reverter rights under the current property deed to the SGCC (i.e., if the SGCC fails to operate as a golf course for 12 months, the SGCC land and water rights revert back to the Developer)?  Response  –  The Developer is not receiving any compensation or concessions from the SOA, either within or independent from of the proposed agreement.
  • Question  –  What type of title will the SOA receive from purchase of the SGCC real estate.  That is, will it be free from any conditional elements such as term limits or land use constraints?  Response – It is not expected that any conditional elements will apply.  That is, the land will be conveyed on a “fee simple ownership” basis. (Note: Under fee simple ownership the property owner is entitled to full enjoyment of the property, limited only by zoning laws, deed or subdivision restrictions or covenants).
  • Question  –  What will the SGCC do with the lump sum $2.75M received from the SOA?  Response  – What the SGCC does with the purchase money is their business, but it is expected some will be used to build a permanent club house.
  • Question  –  Will the BOD hire a qualified outside appraiser to assess the value of the proposed purchases?  Response  –  Yes, this is part of the due diligence process
  • Question  –  Has the BOD performed a cost/benefit and/or a return on investment analysis on the proposed agreement, if not, when and will this be made public?  Response  –  No such analysis has been performed to date.  However, there are many elements involved in the proposed agreement that will be addressed separately and how these may or may not lend themselves to such analysis (a lot of subjectivity here) will be part of the due diligence process.
  • Question  –  Will the homeowner vote be accomplished via ballots mailed to all unit owners?  Response  –  Yes, approval or disapproval requires a simple majority of all ballots cast as long as the 20% quorum requirement is achieved.

Additional questions may be submitted to the BOD via email to soa@mysomersett.com.  These will be complied, posted and responded to on the www.mysomersett.com website under the SOA FAQ section.

Country Club Presentation to Equity Members

somersett UnitedThe Somersett Golf & Country Club (SGCC) presentation to its membership, wherein they make the case for the proposed new SOA SGCC Agreement, may be accessed via the following link:

SGCC Letter of Intent Presentation

Interesting points contained in the SGCC presentation, are as follows:

  1. Reference is made to the Nevada Attorney General investigation (i.e., violations of Nevada Law associated with the current SGCC Lease Agreement), and the Agreement To Stay Investigation by the AG to allow time for a new agreement to be negotiated and voted on by Somersett homeowners. This document may be accessed by clicking on the preceding link.
  2. SGCC equity membership has decreased to 116 members.
  3. Without the SOA assessment contribution of $15/month the SGCC would be operating at a loss (unspecified).
  4. The SGCC would have a higher probability of success if they had a permanent clubhouse facility. As such, the proposed purchase funds of $2.75M would be used to construct permanent facilities, as well as adding to their reserve fund.
  5. It is apparent the SGCC Board prefers a “sale/lease back” option, as described in the proposed new agreement, over a “go it alone” option, but it will be up to the equity membership to decide on via vote.
  6. The sale/lease back option does not involve any homeowner assessment funds being paid to the SGCC.  Only a $2.75M lump sum payment by the SOA for purchase of the SGCC real estate and water rights.  No increase in homeowner assessments will be required to pay off a SOA loan to finance the $2.75M lump sum payment.

Readers are encouraged to access and read the above document links as well as the SOA presentation material and Letter of Intent contained in the previous Blog article entitled “Proposed SOA SGCC New Agreement”.   The SOA SGCC Agreement is perhaps the most important measure Somersett homeowners will be asked to vote on during their Somersett residency. This is not the time to be apathetic.  As, such, SU will do our best to keep readers informed as details develop in the months ahead.