3 thoughts on “Hello Aquarina Neighbors!”

  1. Thank you for sharing this information to our community.
    It is time for a change and the way buisness is conducted in our community.

    1. Agreed! The continuing increase in HOA fees has been nothing but a very large headache for the past 2 1/2 years for me, and the reason I wanted to sell my condo.

  2. (My request to the Board President Patrick Pollock)
    Patrick,

    As President of the Board, I recognize that you have a difficult position, but I also recognize that we are no longer just an HOA, but run four businesses that carry liabilities and responsibilities. As a homeowner, we not only pay a portion of the various costs and salaries in our ACSA dues but have been asked to pay supplemental fees again for these businesses without any outside oversite other than the Board itself. As far as I can see there are no checks and balances from anyone outside of the Board as general management of the club is done by a Board member. That same member also oversees all staffing, payroll, purchases, and contracts, again without the approval of vested homeowners or a second party outside of the Board. I am not saying that anyone is not working on behalf of the HOA, but it would only take one individual with that much-unchecked power to bankrupt our HOA or create a scenario that could close any one of those businesses a well as create additional financial liabilities for the homeowners.

    At the last Board meeting, the Board indicated that these businesses would again be in the negative and require over $200,000 in additional funds to keep them solvent. I have been a business owner for over 30 years and I do not know any business that can get a blank check when they are not profitable without some information as to why the funds are needed, how they are going to be used, and a method for repayment. As an owner of these businesses, I asked to see the financials as well as any contracts and were told that it was not possible as the AGI was a separate entity and I was not allowed that information, nor any information for any employment contracts that were created. As a homeowner paying these funds, this is unacceptable to me as well as others in the community I have spoken with.

    I am very concerned about the lack of oversight for these businesses. I have listed actions that I feel need to be addressed immediately:

    1. Ombudsman: Public Companies have outside Board members to provide check and balances for management. We need to create that immediately. I would recommend at least two homeowners that are not on the Board, have access and oversight of the business dealings with the ability to report that to the community outside of the Board.

    2. Credit Card versus Cash sales. Without vested management, the opportunity to not report and pocket money from any business we own is not only possible, but probably based on what I have seen in at least two of our businesses which result in lost revenue to the stockholders. To remove that temptation, eliminate all cash transactions, except tips. In visiting clubs in Brevard and Indian River, many of them only accept credit card payments. The airlines have also gone to that method to prevent loss of funds from their carts.

    3. Committees: Only vested homeowners should be allowed to sit on a committee to work in the interest of that business. As noted in my report concerning the tennis business, it was brought to my attention, several non-residents are on the committee as well as an employee which does not have a vested interest in the business.

    4. Inventory and Sales: In looking at only the tennis club for 2017, it reported having an inventory if almost $4,000. I would bet that it is closer to $1,000 and no inventory check has ever been made. I see the same issue for the restaurant and possibly the golf club. In speaking to several owners of restaurants, the biggest loss is generally what goes out the back door in food and liquor as well as not reporting income. If we go to a credit card based sale, the cash portion will go away. I would recommend we begin an immediate inventory when food and liquor arrives by placing a barcode on the items when they arrive and when they go to the restaurant. I will provide a free scanner and labels to assist with that. I am not sure of the inventory control program, but I am sure it is available.

    5. Tennis Club: Based on my detailed review, it appears that Aquarina could save $80,000 to $100,000 by changing how the club is run and I am sure with some review, the same could be said for other businesses within Aquarina.

    I look forward to your reply and how we are to address these issues. Also, as requested before, please provide complete up to date financials for AGI.

    Best Regards,

    Gary Parish
    405 Hammock Shore Dr.
    Melbourne Beach, FL 32951

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