Special Master recommends Orchidland receivership

[kalakoa]

the system is rigged to always favor more and higher road fees, and the ones that can afford that the least are the ones who don't have any voice

I hate to say it, but ... fuel tax increase, higher property taxes ...

[randomq]

Terracore, I understand your desire to avoid unintended consequences, but cheapskates and free riders take advantage of those that work and pay. I think they have rights as negligent landowners, but not as road corp members.

[ironyak]

Everybody should be paying their fees, regardless if they pay the poll tax or they get sent to collections. That's why I don't understand why the "pre-payers" get to vote and the ones who will be paying interest plus back payments don't.

My understanding is that the only recourse for the association is to take the owner to small claims court and, if a judge allows, then put a lien against the property for the unpaid road fees. As such, if you never sell your lot, you would never have to pay any backed road fees, interest, processing fees, etc... (although there is some credit issues to having liens against you of course). As this process costs money, that is even more money paid for by others in the meantime that is not going to the roads beyond just the unpaid fees.

I agreed that most of the recent boards have been highly dysfunctional and violated the bylaws to push their agenda. Hopefully in the future, more members (20 needed it seems) can band together and force such boards out (once proxy voting is properly banned as stated in Robert's Rules) instead of just withholding their payments as a form of protest. IMHO YMMV etc

[mermaid53]

The lack of concern or effort to have the roads maintained or improved by licensed contractors is a concern and potential liablity. An injury on a roadway, by a road worker or by a member of the general public, could become a major problem for the Association, especially if unlicensed vendors are used to do road work.

HPP's been dealing w/the same exacto mundo.... Lack of concern or effort by the past 3 boards. Unlicensed vendors, no work comp etc. What's up with that? And the ofc tells callers that chip seal stopped bc of a "group of people causing trouble". Let's not tell lot owners the real reason. Many HPP people wish we could go into receivership...as someone else said, good you'll have adults watching over your business now.

[KeaauRich]

I found it interesting that the Special Master requested information about Association financials but never received it. The financials vendor said he couldn't provide it without authorization from the Wirick Board, and despite several requests, the Special Master never received the information she was seeking. It does make one go "Hmmm...."

[My 2 cents]

It would be informative to know what window of time was used by the Special Master to come up with the $600K total in unpaid fees (past 6 years, since Jul 2008, since 1992, forever, etc)

I'm pretty sure the $600K represents all unpaid fees going back to 1992, which was the inception of the mandatory fees. The Wirick group stated in their newsletter that they were going to write off everything beyond the statute of limitations.

The collection of a percentage of these fees that the “Wirick Group” was prepared to write off could cover the expense of a Court Appointed Master Receiver.

Ms. Cabral is very clearly suggesting that the statute of limitations should be ignored. Again I ask, will she be assuming all responsibility and liability for any counterclaims? Perhaps she could start with Murakami, since that is where the last round of collections left off. Or Watamull, that would be entertaining.

[kimo wires]

Does anyone know when Judge Nakamura's decision will be made public?

[terracore]

"It does make one go "Hmmm...."

This isn't new to the special master, as I understand it, it's one of the reasons the Arthur's board initiated the lawsuit and initially tried to get the accounts frozen.

A lot of paying members haven't paid since the 2-board shuffle started, not for not knowing who was in charge (it's obvious who is doing the road work) but because of fearing embezzlement and collective liability using unlicensed contractors.

And why do they need 11 bank accounts? The only other warning sign that would scream "embezzlement" or "money laundering" would be if they started accepting Bitcoin or Amazon gift cards in lieu of regular payment.

[Amrita]

I have concerns re: the Wirick Board, unquestionably though, they do provide work on the roads, best in 16 years of OCLA living and fully paying road fees on 2 lots. However, I am clear in my mind that the Arthurs group is the root cause of distention and has cost us as owners much grief and money and should be ashamed of its behavior. Why this is not clear to the court and the "special master" makes me think corruption. This is still paradise to me at 76. Merry Holidays to all.

[My 2 cents]

And why do they need 11 bank accounts?

From the bylaws, Article IV:

Monies collected for MRMA’s shall only be used for road maintenance and road improvement projects; including but not limited to labor, purchase and/or rental of road maintenance equipment, repair & maintenance of said equipment, storage of said equipment, purchase of road materials, and costs associated with the administration and collection of the MRMA. All monies collected for such purposes will be kept in a separate checking and savings account.

With all the road work they have been doing, I have a hard time believing that any money is being stolen. Where would it come from? And why would they put it into a another OLCA labeled account? Even Special Master is not suggesting this. The time and place to look for embezzlement would have been when the last licensed contractor was given some big money for very little work. But I don't suspect embezzlement there either, I just think we got screwed.

The unlicensed contractor problem can be fixed. It's true that we don't have to use licensed contractors, but we cannot use unlicensed ones. What we CAN do is form our own road crew and pay them as employees with all the associated workmen's comp, etc. It's a bit cumbersome, but it is perfectly legal and sound. It has been done that way in the past, and we should have gone back to it long ago.