To All Las Conchas Vecinos:
For more than six months I have been the direct recipient of personal and professional attacks at public Board meetings. I felt I needed to reply to the most recent personal and professional attacks from the anonymous Las Conchas "concerned homeowners". Here is my personal and truthful reply that should clear up these false allegations made by these anonymous cowards. Keep in mind that most of this happened before I decided to run for Vice President and is one of the reasons I ran for the position. What this group has also failed to mention are all of the great things this current Board of Directors and Executive Board have accomplished. A follow up regarding all of the board’s accomplishments is coming out soon.
Overview:
As far as some Océano homeowners thinking that their dues were paid and that they weren’t, that is not true but could have been perceived by some and twisted by others. When Cadden first started, I tried to obtain balances for my Las Conchas clients who wanted their HOA dues paid from their Océano managed accounts. I was having a hard time getting the balance reports from Cadden Ramirez staff, but I finally received a list of outstanding balances and proceeded to process these payments. Some of my clients allow me to make the HOA payment without consent and others prefer prior approval. As such, we obtained approval from many of the owners and I personally approved others. I wrote check #6003 in the amount of $20,008.26 and gave it to Leo Romo, the Las Conchas General Manager at the time. Some time later, a month or so, a couple of my owners (Preston Miller and Frank Liguori) contacted me stating that their HOA dues had already been paid, so I investigated and found this to be true.
The payments I made on my clients' behalf were based on the outstanding HOA dues records that I was provided by Cadden.
There were problems with at least 6 accounts, mostly in that their dues had been paid twice. In other words, they had credits at the HOA and wanted their money back. This is very understandable. This is where it all started. I approached Leo and asked him how he wanted to handle this and due to the numerous mistakes on the Cadden ledger, we agreed that it would be best that the transaction be voided and we would settle this when Cadden had the accounts reconciled. Leo, volunteered the check, I took the check, went to my office, and performed the voidance routine in our accounting system, which automatically credited the amounts back to each homeowner’s account. For every debit, there was a corresponding credit but on different monthly statements. So for a period of time, according to Océano statements, it appeared that the HOA dues had been paid, until we unpaid them during the voidance routine per Leo’s suggestion to me. Since the voidance of this check, I have written checks to the HOA for HOA dues totaling $86,870.95. This is a far cry from what my accusers are trying to imply.
This issue was further compounded in that it took Cadden almost a year and a half to reconcile the above accounts. After repeated requests for outstanding balance reports, I finally received one that was over two months old. I received a couple of other outstanding balance reports but they were typically out-of-date and worthless from an accounting perspective. It is difficult to make assumptions about balances on out-of-date information, especially when we are considering $1,200 payments per property.
Catalina, a Cadden Ramirez employee, told me twice that it was not their (Cadden’s) responsibility to provide statements to the management companies. It is the homeowner’s responsibility. She refused to give balance reports to me for some time. Finally, I got them directly from Steve Keys, Finance Director at Cadden in Tucson. This was, however, for only a very short time, as he quit providing them to me when the RFP (Request for Proposal) process was announced.
I have made every effort and have always done so, to pay my clients' HOA fees if they requested me to do so. My problem in providing this service was made extremely difficult when I could receive neither accurate nor timely balance reports from Cadden. The other difficulty was that Cadden told me for quite some time, that it is the homeowner’s responsibility to insure the payment and that Cadden does not need to cooperate with the management companies. This is contrary to how we have done business with Las Conchas clients and the Las Conchas HOA for over 12 years.
Question per Anonymous Vecinos: The subsequent examination by Cadden showed that Oceano's clients owed approximately $80,000 to the HOA. Chuck Salem is an owner of Oceano.
Océano clients probably did owe $80,000 at one time. That is pretty normal, considering that the beginning balance for HOA dues was around $140,000 for all Océano clients, not including any outstanding water, which is usually around $10,000 a quarter. Their water services balance due list was also not accurate.
A point to make here is that Océano’s rate of payment was the best out of all management companies. I am not trying to put down the others as I know that they were having similar difficulties and it is ultimately the individual homeowner’s decision.
Question per Anonymous Vecinos: At this time, Mr. Salem became Chairman of the Cadden Oversight Committee and began demanding that we get rid of Cadden saying they were too expensive and the association was running out of money.
The above is partially true but the main reason for the Management Structure Task Force, created by the Board of Directors in the early spring of 2008 during the previous administration, was to look at the performance of all management for Las Conchas, that included the LC staff as well as that of Cadden. The analysis done by our committee suggested that we were paying more than we should have for the services provided according to our contract with Cadden. Also several services were not being done or not being done effectively. It was also true that the HOA was running out of money, and over budget by nearly $85,000 and climbing. At the same time, our expenses were increasing and revenue was not keeping pace.
Question per Anonymous Vecinos: Oceano issued a letter to their clients blaming Cadden Ramierez for mistakes and stated in a letter to clients, "Since we have not been able to obtain up-to-date and accurate account information from the Las Conchas accounting company, Cadden Ramierez, we have been unable to pay your Las Conchas HOA dues. As such, any monies that we had retained in earlier months to prepare for this payment was released back to your working balance and/or sent to you in your last check."
True as can be. This was an explanation to my homeowners that I voided the check (#6003 mentioned earlier) and the money was credited back to their account (per Leo Romo’s recommendation). Very simple. This was also during the time that Cadden refused to provide balance reports and were very uncooperative.
Question per Anonymous Vecinos: Subsequently, approximately $40,000 in homeowners' dues were paid by Oceano's clients to the Association and deposited into the rightful bank account belonging to the Asociacion de Vecinos de Las Conchas.
I very much doubt that $40,000 was sent to the HOA directly by my homeowners. I will say, however, that after I wrote the above letter to my owners, Cadden started being cooperative and started giving me the outstanding balances. This was during the short time period, a few months ago, that Steve Keys was handling my clients' accounts personally. I wrote many checks to the HOA after that in good faith. Cadden quit providing me with the balance due lists of my clients when the Board gave them a 60-day notice of termination and I have only written two checks since. If my homeowners owe money, I don’t know it because Cadden quit providing me with the information. Since then, Arturo Cano, our Manager (and former Cadden employee), has not had access to the Cadden database or email system either, so he has also been unable to provide the lists to me.
These are facts with records to substantiate them. Please feel free to call me if you have questions at (888) 328-8491.
Sincerely,
Chuck Salem