Hello Waterlefe homeowners.
Thank you for taking a few minutes to read this very long message. Your involvement is extremely important to the future of Waterlefe and its lifestyle.
In January the MPOA will be conducting elections to fill three expiring terms on the board of directors. All three incumbents - John Arlotta, Jeff Brand and Kathy Kennedy-McElligott - have submitted notices of intent and are running for re-election to the board. This year, as of this date, there are three additional candidates seeking the seats - Tom Tosi, Eileen Antonelli, and Syd Xinos - all of whom are also currently members of the CDD board of supervisors. Mr. Xinos is the Chairman and Mrs. Antonelli is Vice Chairman. If any of them are elected, they intend to serve concurrently on both boards.
It’s important to note that there is nothing in the Florida statutes that either specifically allows or prohibits CDD board members from also sitting on their HOA Board. It is so unusual that the statutes probably never contemplated it. There are a few examples of other communities in Florida that utilize shared members on both boards, however Waterlefe is unique over all others in one very important way that is explained below.
There are over 675 CDDs in Florida, the vast majority of which work in conjunction with a Homeowners Association. Generally, the CDD is responsible for infrastructure such as roads, lakes and ponds, sidewalks and sewer lift stations and the HOA manages covenant enforcement and, in some instances, amenities such as food and beverage, clubhouse facilities and recreational assets. What makes Waterlefe unique is that it is the only community that anyone is aware of that operates independent food and beverage facilities in direct competition with each other, and this has created some very unusual circumstances and real operational challenges since the opening of the Sunset Grille and its expanded evening hours in direct competition with the River Club. For perspective, it’s important to understand the difference between a public restaurant and a private club. A restaurant such as the Sunset Grille is in business to return a profit to its owners. A private club such as the River Club is in business to ensure the total satisfaction of the members who subsidize its operation.
Because of this unfortunate competitive situation between the private, members-only River Club and the public Sunset Grille restaurant, the MPOA attorney, who is recognized as an HOA law expert by the Florida Supreme Court, has advised that a conflict of interest would exist if CDD board members are elected to the MPOA board because they are competing, independent businesses. If elected, they would be required to recuse themselves from any vote or discussion of any matter related to the River Club, the Sunset Grill, staffing, purchasing, repairs and maintenance, contractors, inter-local agreements and, among others and probably most troubling, the budgets for the MPOA and the CDD. More troubling, if all three CDD members are elected and take majority control of the MPOA board, all three would have to recuse themselves, effectively leaving the board without the three-member quorum required by law to conduct business. The same recusal requirement would exist with the CDD board. According to the MPOA attorney, the Florida attorney general has ruled that the practice of preventing a quorum is illegal. And further, what purpose is served by having board members who are legally required to recuse themselves from most business discussions and votes?
There are other complications. Both entities follow completely different election rules. Since the CDD is a county government, its elections are held in November on the county ballot. HOA elections are held at annual meetings. So, it could easily occur that a director sitting in a dual role could suddenly be voted out of office on one board but not the other. Also, authority over the community’s business could go from 10 individuals serving on two five-member boards to the same three-person majority on both boards. The entire community would be under the control of three people, but those people wouldn’t be able to vote on or discuss issues because of recusal requirements.
The community has already been impacted financially with the CDD’s unilateral decision to spend millions of dollars on a new golf clubhouse restaurant without the benefit of a feasibility study, an impact analysis or even a town hall meeting or open forum for homeowner input. "If we build it, they will come" seems to be the self-guidance that the CDD board used when deciding to commit homeowners to millions of dollars of financial obligations. And the result? For the CDD fiscal year just completed in September, the Sunset Grille, a restaurant open to the general public, lost about $500,000.00, including debt service that had to be paid for from other CDD funds. And it is budgeted to have six figure losses again this year. The Sunset Grille also has had a negative impact on River Club revenues and added significantly to the Club’s operating deficit this year, which contributed to the increase in our annual assessment. You need to ask yourself: "Are these the people that I want running my River Club, my community and the entire Waterlefe brand?"
Mr. Xinos recently stated that the River Club should significantly cut back on its operating hours. Mrs. Antonelli said that the River Club doesn't need to hire a new chef and that a line cook can do the job. And Mr. Tosi, when asked why the Sunset Grille was not honoring its original commitment to close at 5pm to avoid competing with the River Club, stated “that deal is off the table". All these comments show no regard for the community or its homeowners, just a need to ensure the success of the Sunset Grille at all costs, including the destruction of one of the two most important pillars of the Waterlefe lifestyle, The River Club. Can you imagine the reaction if someone suggested to the CDD that the golf course should limit its operations to one or two days a week or that it doesn’t need to employ golf pros?
As this news has spread, several residents have reached out asking what can be done to prevent this hostile takeover of the MPOA board. The best answer is "vote for the incumbents". Some residents are very upset about Waterlefe becoming something completely different than what they bought into when they moved here because of this. Worse yet, they are rumbling about initiating lawsuits to get the courts to intervene. You can imagine what the impact would be on home values and sales if the community becomes embroiled in a lawsuit between a homeowner and the CDD. It must be disclosed to potential buyers. One resident realtor estimated that property values could decrease between 20% to 40%. Homebuyers don’t want to move into, or even look at, communities in turmoil.
Throughout history, individuals seeking power first have to take control. If three CDD supervisors take control of both governing bodies of Waterlefe, they will acquire the power they seek. Don’t let that happen. Keep our divided government structure in place. Please support and vote for the three MPOA incumbents, Arlotta, Brand and Kennedy-McElligott, and encourage everyone you know in Waterlefe to do the same. There's too much at stake to do any less. Waterlefe is not broken, and having three people controlling both boards certainly isn't the solution to a problem that doesn’t exist.
Your comments and questions are welcome at any time.
Best regards,
Waterlefe MPOA Board of Directors