THE MANAGER’S REPORT

Below we have the general manager’s fire hydrant report taken from our Village Newsletter for January. It seems to read that change orders and one of three bids supposedly reviewed for this fire hydrant relocation were approved by the Board before this work was ever started. It implies that Director Dodson voided the check to pay the contractor because she had misunderstood this.

(Manager’s report)
The Fire Hydrant is complete. Landscaped around it. Did excavation and meets standards of fire plugs. Larry continued to give history of how he had received three bids, the Board voted for the $6,000 bid, which was the low bid. The bid was for moving the fire plug and adding a new plug valve. Bid was made on what bidder could see. If something comes up that is unforeseen then that has to be added. To meet standards of fireplugs, risers had to be ordered and labor was additional. That was an additional$1,000 (labor included). So a check was made for $7,000 which Dir. Young signed without question and then the check was sent to Dir. Dodson who voided the check because the Board had only voted on paying $6,000, the original price. Now GM is asking for the Board’s approval to pay for the extra materials and labor to bring the fire plug up to standard.

This summation appears dissimilar in the way this chain of events actually unfolded and left out some important elements which should be mentioned. The following is a more accurate synopsis.
During our 9/4/2008 rescheduled Regular Board meeting, Director McBride said he thought there may be a safety issue on a recent relocation of a fire hydrant. He also asked why this fire hydrant was out of commission for 10 months when it only had to be relocated across the street from its old spot. It was decided to discuss this further at the next Board Workshop.

Due to the lawsuit, this next Workshop didn’t happen until 10/15/2008 where Director McBride reiterated his concerns about the hydrant height and relocation cost. Our GM explained that the Port Isabel’s Fire Marshall didn’t have a problem with the hydrant, but this being out of his jurisdiction; he of course wouldn’t approve it. The GM said many of Port Isabel’s fire hydrants are as low as this one. The only action our GM wanted to do about this was to dig around it some more. Director McBride insisted that our Village is paying for a correct installation, not an improper one. The GM said he did not see how he would be able to get this contractor back in without information about the required Fire Department’s height standards in which to prove to him that he improperly installed it.

At first this seemed to make a lot of sense until the minutes for the June 28th, 2006 Regular Board Meeting revealed that our GM reported “#12. Fire Hydrants at Sea Cottages have been brought to the Fire Departments required height.” One would think if he knew then the requirements, should not he know them now? If one of the GM’s responsibilities is to oversee work done in our Village, should he not have known this hydrant was not at its proper height immediately and made the contractor aware to do it right?

At the 10/22/2008 Board meeting Director McBride provided the national and local fire hydrant height requirements off the internet, with pictures. The GM seemed to ignore this to say he had just talked to the contractor and he is coming out to correct this situation at no charge to LIV what-so-ever.

(Manager’s report)
Dir. Dodson said that the Board had been told at the last board meeting that the company would honor the $6,000 amount. Then she was presented with a check in the amount of $7,000 for signature ($1,000 more) so she voided the check in the interest of the resort.

After the fire hydrant was finally installed correctly, the contractor’s check was made out by the management staff and apparently delivered to Directors Young and Dodson by mistake for signatures. It had two invoices with one thought to showing the exact opposite of what our GM had stated. Director Dodson voided this check to insure it was not paid until she, the Board, and owners had an explanation.
This explanation came at the following 11/19/2008 Director’s meeting when our GM gave everyone in attendance a long lesson about how contractors only bid on what they see and their use of change orders. He said there was a change order to raise this fire hydrant to its proper height and this of course added to the cost.

To my knowledge, this was the first time change orders have ever been mentioned in a Board meeting. He made no endeavor to explain his previous proclamation that the contractor was to do this at no charge.

(Manager’s report)
Now GM is asking for the Board's approval to pay for the extra materials and labor to bring the fire plug up to standard. Dir.
McBride reported that the company had overcharged. South Padre Island company charges under $4,000. He said that if Larry had asked for people who do this in the Port Isabel, South Padre Island area, it would have been for a considerable less amount of money. Larry replied that the 6" valve was moved across the street and the Board did approve the bid.

Or did they?
The only mention in the minutes about this hydrant was found on November 21st, 2007. Armando said “Water leak at Lot 27. Fixed. Fire hydrant not working.” That’s it.
If our previous Board did approve this $6000 open end bid to put in a new valve and relocate this fire hydrant, they would have made a motion and given an approval for such at a scheduled board meeting. Without question this would have been recorded in the minutes.
To this date, there is no other record found in the minutes to indicate three bids were ever reviewed as our GM claims, much less having one bid receiving a motion for approval. To my knowledge no previous LIV Boards have ever approved an open ended bid without the maximum amount of overage at least being specified.

(Manager’s report)
Dir. McBride mentioned that he could not find a motion on item anywhere in the minutes.
Dir. Hansen commented, as a follow up, that he was unable to find a bid. Could GM provide before this board. Pres. Sullivan requested that Sec. Mulch provide minutes that will show that $6,000 was approved by Board.

Wouldn’t owner’s best interests be served with the assurance that this expenditure had a Board approval? Should we be fools in believing it was approved but nobody knows just exactly when or where, along with it somehow was not recorded in the minutes? Directors on the Board have requested documentation showing when it was approved. Are they going to be ignored?
Owners are also deserving of a very good explanation as to why our GM so clearly said in a board meeting right to their faces that there would be no charge to LIV what so ever while quietly slapping our Village with a $1000 invoice and having to eventually force feed us with this ridiculous change order story after this money took notice, check stopped, and required some answers?

Are owners once again being told one thing only to find out it’s another? Is this to become a permanent reoccurring theme within our Village? Is this happening because accountability cannot be effectively enforced?
This summer six of our Board members had tried to promote accountability and were frequently taunted by a small group of owners with moans, verbal abuses, heckling, smear tactics, and let's not forget an invalid director recall. It was topped off by these currently pending lawsuits against these same directors which have all but tied their hands on enforcing what little management accountability there was.

Which brings me to this last concern? If management wanted our Village to pay $1000 for work which ended up being negotiated for 35% less, why wasn’t it negotiated from the start? Is this the procedure for all Village transactions? This makes one wonder just how wisely our Village money is really being spent and if the Village’s best interest are being served?

A person cannot help but feel that they’ve been hosed about this hydrant relocation venture?

When is all this crap going to end and management accountability really begin?