Circle C Neighbors

Susan Hoover
6426 Aden Lane
Austin, TX 78739

Dear Ms. Hoover:

I am writing to you because you have served on the board as the Treasurer of the Circle C Homeowners Association (CCHOA) for more than ten years from 1991 to early 2001 and also because you are the only board member who has received so many lucrative contracts from the Association during and after your tenure.

After examining the financial documents of the CCHOA in April 2003, I discovered many questionable items. As a homeowner, I would like to exercise my right to inquire about them.


LANDSCAPE MAINTENANCE & REPAIRS

Circle C Landscape Company was started by the Developer, Gary Bradley?’s company ?– Alien, Inc. in 1985. Alien, Inc. employed two employees who were also the board members of CCHOA. These two employees were yourself and Steve Bartlett. Steve Bartlett was the President of Alien, Inc. for more than ten years and he is also the Vice-President of Phoenix Holdings (another Developer?’s company) up to this day. Steve Bartlett has also served as the Vice-President of CCHOA since its inception in 1988.

Based on your own revelation in the post at the Web site of www.circlec.cc, titled ?“SORRY?”, dated 2/18/2003, the above landscape company became Circle C Landscape L.L.C. in 2001 with three partners; one of which was you. The other two partners were Brad Beutel (Gary Bradley?’s cousin) and Lazarus Exempt Trust (Gary Bradley?’s saving account). In November 2002, you bought the whole company and became the sole owner.

According to the CCHOA?’s financial statements, the majority of the association dues paid was for landscape maintenance and repairs. For the last four years, we had paid the following:

Year 2003 - $539,960
Year 2002 - $528,030
Year 2001 - $568,247
Year 2000 - $469,140

Here are my questions for you:

(1) Why were the landscape contracts renewed annually without a bidding process? From 1985 to the present, the landscape contract had only been open for bidding just once which was happened in 1999. For the last several years, the Board engaged something called ?“comparison bid?” by comparing the size of the common areas with other subdivisions. As you should know that every subdivision has its own unique landscape, comparing by the size is comparing apples with oranges. Circle C Ranch has a lot of non-irrigated raw land covered with the weeds. How could you assume maintaining an acreage of flower would cost about the same with maintaining an acreage of grass or weeds? Would you please kindly explain this?

The Board said, ?“?…..bidding costs the Association a significant amount of funds, so comparative data has been used to determine contract prices. This act alone probably saves the Association over $15,000 per year?…..?”
That is totally and completely untrue. To my knowledge there are a lot of landscape companies eager to offer free estimations for the possibility of obtaining new business. The Board has used this as an excuse to retain the landscape contract year after year. Would you please kindly explain this?

(2) Your landscape company occupies half of the office space located at 5919 La Crosse Avenue. The ownership of this real estate property was transferred from the Developer, Gary Bradley?’s Phoenix Holdings to the Association in February 2001.

Did you pay rent? How much did you pay monthly? Why did you pay the rent to Phoenix Holdings even though you knew this property now belongs to the Association? Would you please kindly explain this? I would also like to receive a copy of the lease agreement.


(to be con't)

Letter to Susan Hoover (Part 2)


ARCHITECTURAL INSPECTION & REVIEW SERVICES

According to the CCHOA?’s financial statements for the last four years, the Association paid the following amount to you for the above services:

Year 2003 - $51,166
Year 2002 - $33,147
Year 2001 - $17,094
Year 2000 - $10,031

Why did the Board award you the above contract year after year without any bidding process? Do you have any architectural and/or engineering credentials to qualify you for the above responsibility? Would you please kindly explain this?


FULL CIRCLE MANAGEMENT

The above company was jointly formed by you and Denise Nordstrom in November 2002. Formerly, this company was owned by Steve Bartlett and operated under the name of Castle Realty Management which employed Denise Nordstrom as a clerk.

Here are my questions for you:

(1) Why did you charge $55 per hour for the Board members?’ voluntary services, such as Board?’s meetings, Board?’s communications and homeowner issues?

According to the Bylaws of the CCHOA, Page 2, Article IV, Section 4 ?– COMPENSATION, no director shall receive compensation for any service he may render to the Association. However, any director may be reimbursed for his actual expenses incurred in the performance of his duties.

(2) Why did you charge the Association $55 per hour for handling the Developer?’s business, such as the review of Stratus Property?’s Deed Restriction, survey on Stratus Property, document review for Stratus Settlement and e-mails to Stratus Property? These are the business among the two developers; these are Gary Bradley?’s expenses, not ours!

According to the Declaration of Covenants, Conditions & Restrictions for Circle C Ranch Subdivision, Page 4, Article III, Section 2 ?– PURPOSE OF ASSESSMENTS, the assessments levied by the Association shall be used exclusively for the purpose of promoting the comfort, health, safety, and welfare of the owners of the properties?…?…?…..

(3) Why did you let Denise Nordstrom charge an excessively high rate of $35 per hour for performing the clerical services?

(4) Why did you pay the rent of the other half of the office space to Phoenix Holdings even though you are fully aware that the owner of the property is the Association, not the Developer anymore?

Would you please kindly explain all the above questions? And also, I would like to receive a copy of the lease agreement.


HERE IS MY CONCLUSION :

From the surface, it looks like that the Board of Directors of the CCHOA is extremely generous to you by giving you all these lucrative contracts. But actually, the above companies are designed for being used as a sucking tool to suck out a tremendous amount of money from the Association fund to benefit all of you including the Developer, Gary Bradley.

I strongly believe that the Directors of the Board have received KICKBACKS in the form of rent, service compensation and/or something else. Only an audit of the books of the above three companies can truly reveal how the board members have been benefiting individually from the Association?’s fund.

Therefore, I would like to examine the income & expense statements, balance sheets, tax returns, check register, bank statements, returned checks, and expenditure receipts of all the above three companies. As a homeowner, I am curious to find out how much did these Board Members receive for their voluntary work that you have charged us.

I look forward to hearing from you soon. As a homeowner, I am entitled to these answers. If I don?’t hear from you within ten days from the date of this letter, I will have the pleasure of seeing you in court.

Sincerely,

Lisa L Sun

Response (1)


Date: 7/16/2004 9:03:31 AM Central Standard Time
From: dabrams@medicalequation.com
To: LS0909@aol.com
Sent from the Internet (Details)


You have to be the most ignorant sycophant and nihilistic moron who has ever been my displeasure to know.


Why do you think that no attorney has ever taken up your case?


Why do you think that you have been pushed aside by every agency you have addressed? You are completely off base. You have no idea what you are talking about.


If you feel that this situation is so bad, why don?’t you just move? On the other hand, your presence and e-mails are such a joke that losing you to laugh at out loud would be a disservice.


You are simply pathetic.

Response (2)


Subj: Hello
Date: 7/15/2004 7:41:07 PM Central Standard Time
From: ***********@austin.rr.com
To: BeatGreedyBoard@aol.com
Sent from the Internet (Details)


Awesome, Awesome, Awesome post regarding Hooverville. You should probably also ask here what in the hell her crew has been up to this summer? The weeds and ants are piling up everywhere.