January 14, 2005
Re: Terri Giles/CCHoA Bookkeeping

Dear Ms. Sun,

Thank you for your recent e-mail message. I?’m not sure I can meaningfully respond to your concerns because they are not expressly stated, but instead incorporated by reference to an unidentified website. Notwithstanding, I will attempt to address those concerns in the order presented. Your concerns are quoted in italics and answered in distinct numbered sections below.

1. Lisa said, ?“I want to know how you are going to undo this damage and fix your negligence.?”

I don?’t know that you are referring to here. What damage do you claim you or the Circle C Homeowners Association has suffered as a result of anything its current board of directors may or may not have done? What acts or omissions of ours do you claim are negligent? I can?’t meaningfully respond to your accusations until I can identify what they are.

2. Lisa said, ?“I remember that I have posted about the Association fund was being misused by our Bookkeeper, Terri Giles, for paying Gary Bradley?’s utility bills and property taxes at least five times or more on this Web site.?”

What website are you referring to? While we are sensitive to homeowner concerns, we cannot act on them unless they are brought to our attention. Your concerns are important to us and if you are alleging that Terri Giles, or her firm of Giles & Shea, have committed criminal, fraudulent or negligent acts, please inform us of same immediately so that we may properly investigate these allegations. In addition, please forward a copy of any documents supporting your allegations so that we may confront Ms. Giles directly and confirm whether she or others in her firm have committed the acts alleged.

3. Lisa said, ?“During last nine months, did our NEW Board even bother to look into this matter? If not, why not? Prior to renewal of the contract with Terri Giles, did the Board question her about these kinds of payments? If not, why not??”

Again, I don?’t know what you?’re referring to. This board has reviewed the audit report submitted by Helin, Donovan, Trubee & Wilkinson, L.L.P. and are not aware of any glaring irregularities. In addition, our vice president, Mary Goehring, has been reviewing and making improvements to our recordkeeping processes but has not identified any glaring irregularities. Again, if you are aware of any criminal, negligent or fraudulent acts committed by Ms. Giles on her firm, please bring them to our attention immediately so that we may get to the bottom of this. In the event Ms. Giles has engaged in criminal or fraudulent acts, I am inclined to believe that the board of directors will terminate her contract for cause immediately.

Letter from Fennessy (part 2)


4. Lisa said, ?“Renewing a contract with the Bookkeeper who we already know is misusing our funds is just like hiring a known child molester to baby-sit his/her own children. It is grossly irresponsible and negligent.?”

I would again ask that you provide us with evidence to substantiate your claims. If you are indeed able to show us that Ms. Giles is misusing and/or misappropriating our funds, you may rest assured that she will not be in our employ much longer.

5. Great Value v. Great Ripoff

I?’m not sure what you are asserting here either. Notwithstanding, the board of directors sought out other companies to provide us with the services currently provided by Ms. Giles and Ms. Giles was able to provide those services at a lower cost. Consequently, we awarded her the contract. More specifically, we contacted the following firms:

A. Alliance Association Management, Inc.
B. Liddiard Management Company
C. Faske, Lay & Co.
D. Threadgill, Ryan & Associates, P.C.

The latter two firms reviewed the type of services requested and declined to tender a bid. The former two firms expressed interest in receiving the contract. Notwithstanding, they did not offer the lowest bid. Both Alliance and Liddiard perform bookkeeping services based on the same pricing model employed by Ms. Giles. To wit, they charge a flat fee each month based on the number of homes in the association, plus an additional fee each time a home is sold with in the HOA?’s jurisdiction. Alliance and Liddiard were able to outbid Ms. Giles?’ firm on the flat-rate fee by about $0.25 per home per month. These savings over the course of one year would equate to approximately $9,600.00 ($0.25 x 3200 x 12). However, Ms. Giles outbid her competitors with regard to the transfer and resale fees. Both Alliance and Liddiard charge a fee to perform transfers and resales and retain that fee for their respective companies. (The current rate for Circle C is approximately $125.00). Ms. Giles retains approximately $25.00 for each transfer processed and our Homeowners Association receives the remainder.

In closing, thank you again for expressing your concerns. We look forward to your response.

Yours very truly,
Quentin Fennessy
President, Circle C Homeowners Association, Inc.

Lisa's REPLY


Re: An Unidentified Web site

Dear Mr. Fennessy,

Thank you for responding my e-mails. Before I can respond your letter in a meaningful way, I must ask you a few questions. I would appreciate if you can answer each of them.

(1) Are you aware that there is a Circle C Neighbors Discussions Web site of http://www.circlec.cc?

(2) When did you discover this Web site or when were you being told about this Web site? Please give me the month and the year.

(3) How often did you visit this Web site before you were being elected and serving on the Board with Mr. O?’Reilly and Mr. Rigsbee?

(4) How often did you visit this Web site after you became the President of the CCHoA?

I look forward to hear from you soon.

Sincerely,
Lisa Sun
Circle C Homeowner

Walk a mile in my boots....

Asking questions and open communications are critical features of a health, democratic process.

Sometimes, particularly when we get engrossed in the Internet, we forget that there is another world out there that still operates without email, withoug web sites, sometimes, even without telephones. One of the best ways to get over that myopic perspective, is to get out of your house and spend a little time with the people who make this community work.

I'm talking about my own experience, of course, which was greatly enriched after spending a few hours reading through the CCHOA files, looking at the books (much of which is still hard for me to grasp), reading some of the contracts, the pool expenses, and looking at the facilities and amenities we all own in CCHOA. I read the law on Non-Profit Corporations, I visited with other HOA members, city council members, and talked to a few different lawyers (on both sides of the CCHOA controversy).

I have formed some opinions and I have changed some of them. I also go out an and walked door to door and talked with hundreds of my Circle C neighbors - face to face!

I have attended most of the CCHOA board meetings, I have attended all of the CCHOA member meetings, and I helped to elect the board members who serve our HOA today. I write to them, I call them on the phone, and I listen to them as well as share my stornger opinions with them.

In the last two years, I have only seen Lisa Sun one time and that was in her home.

Here is my suggestion, Lisa. If you still don't things are right at CCHOA, then run for one of the two board of director positions that will be up for election in March. Let me put your name on the Nominations committee.

Then, you can see first hand, exactly what goes on in Circle C's Home Owners Association meeting, office, records, and contracts.


Just for the record, I personally know of 7 web sites (with public forums) where CIrcle C Ranch dialogs are going one. This is the only one I have ever seen your posts on, but you should be aware that there are others.

The other little detail you seem to forget, CCHOA has included your circle into the common areas that they maintain in the landscaping contract. I don't recall that you or any of the neighbors in your cul de sac ever thanked anyone.

It's your right to complain, but every once it a while, it would be really refreshing to see you do something contructive for your community.

Volunteer, spend some time on a committee, come plant some trees with us. We are your neighbors, too, Lisa.