Current Thoughts on PDB HOA

The PDB electrical billing process of reading the meters was an easy task. Both Leo and Pablo made the rounds together for water and electricity on February 1st and March 2nd. Getting the meters read on a timely basis provides for consistent usage and payments. The actual bills from CFE (four in total) are divided into sub meters for individual homes. The total amount used is then divided by the dollar amount to arrive at a factor that is used to figure out the individual homes' usage.

So if the factor is too great (which has happened even though in theory it's not supposed to), the amount collected is not enough to cover the electric payment. Hence the HOA dues cover these extraordinary expenses, which are paid from the general fund.

We should probably hire a manager to take on the financial responsibilities that include records and record keeping so that we keep in compliance with Mexican Hacienda laws. This also means that we need an accountant, as this law requires monthly reporting that is accurate to the best of our knowledge.

Our water company is also in search mode and has come up with an accountant who can review the information required for the Home Owners as well.

It's important to keep the management position separate for a number of reasons:

1. The water company is a corporation, and the HOA is a separate entity which has a different set of guidelines.

2. The water company has Arturo who has a new business called Las Palmas Travel which he purchased from Lee G. Taking on the HO responsibility may be a bit much for him.

3. The PDB residents who have held
these positions didn't come to PDB to take on a full-time job which is what it is. The community is growing and will continue to do so.

For these reasons I think we have to take the next step and hire an outside manager.

The Odsys collection department at Bob's house (thru Victor) seems to be working for the water company, as he makes his runs to the bank HSBC on the first of the month. The HOA has either taken collections from the members individually at Roy's house, or allowed for direct deposits to be made to one of the banks. Now, there are 4 separate banks, which makes for an accounting nightmare. We should consolidate the accounts to one bank. This will require a new account to be opened in the name of the new entity with new signature cards, and then closing out the old accounts. We will have to decide on who will be responsible for this. I would recommend that it include at least one person who lives in the neighborhood full-time.

A lot of you (myself included) have wondered what our dues actually pay for at $200 per house and $35 per lot. A proper accounting system with reporting capabilities will give us a better understanding about where the dollars are actually being spent.

I would like to see us continue with the present dues structure for at least another quarter (3 months). This should generate an additional 200,000 pesos and cover any expenses we may incur during that time, such as legal fees and road improvements.

I am not suggesting we go crazy and spend more than we need to, but there are priority projects which need immediate attention. For example, one is the center main road which needs to be completed with better drainage. This is something that needs to be completed before the rainy season begins.

Anyone living on the north side of town is out of luck should we get a major storm, and those living on the south side could see a California-sized mudslide on their frontage road. A survey will be required to determine the correct placement for drainage. I would recommend that we pay for this study ASAP and not wait until it's too late.

The owners of the properties on either side of the vertical street should be involved in this decision. Who are these people? That depends on which map you're looking at today, and there are several different ones out there.

Some of the PDB HO's have a combination of utility systems working for them, while others are totally reliant on the Odsys and HOA services for their electricity and water. Some have wells, and others do not. Some have their own
transformers and are billed directly from CFE.

Are you completely self-sufficient? Some consider this a priority, while others don't seem to care that much about the services provided. This has been a bad reputation of the PDB area in the past.

This makes it difficult to get everyone on the same page and "agree to agree" as Roy says. Actually thats what he refers to when he's describing the present HOA's non-enforcability of its bylaws. (Please see the document library). This basically means "non-existent". I realize as most of you do, that we are already an established communinity made up of a neat group of diversified individuals with good ideas and intentions. We aren't looking to police the development with an iron fist so to speak - We've "been there, done that" and didn't like it! Many of us have had crummy experiences with "condominiums" and don't intend to go there. However, here in Mexico they have a legal system that recognizes communities like ours called Horizontal developments. The structure is being looked at by a local attorney in Bucerias whom we hired to
represent and take on our project. (Thanks to Jim W. for his involvement
in this selection process!) Lic. Marcos is well versed in Nayarit Law. Nayarit is the state which has one of the most advanced laws of its kind in Mexico. Again, please refer to the documents in the Library.

Marcos gave us a US$650 price for shutting down the old HOA and giving us a form of bylaw structure which conforms to the new law which was written and passed in 2002. This includes his time as well. This seemed like a reasonable fee. I beleive this will go higher when he gets into all of the issues that are involved. This is just a heads up on what to expect.

I've already had a request to provide road info which is required by the government. We had a visitor to the office at "Tambien", (behind Myra's old house). He is an attorney from Guadalajara who represents our neighbor behind the PDB community. This is an issue that I have referred to Lic. Marcos as well. I have been advised by one of our own senior HO members that this is a legal matter and should be treated as such. I would like to provide Marcos with the letter describing the position the water company attorney believes is appropriate if that is OK with you Bruce C. and others involved in the first go round. More later...

Another visitor showed up from the same camp this last week and would like to discuss some ideas. He is the president of the neighboring association. I'm not quite sure what to expect but we will find out soon enough.

I'm not a director or an official nor have I been in the past, and I don't
have those aspirations now. I am only an interested homeowner family member. I have heard that You can approach a development project from the point of view that you have a legal right, or you can approach it from the view you're working in harmony with the community to create something that adds value for everyone. There is a lot to be said in favor of sitting down with these folks face to face and working out our
differences.

We have had, for a couple of years, a number of officials crawling all over our beach delivering papers pertaining to concessions, federal zones, permits and who knows what. It's pretty important that we stick together as a group and support one another through some of this stuff which can be more than a little stressful.

I will be back down at the end of the month and plan on getting together with Roy, who is due back around the 1st of April. We will be trying to get some of the details worked out with regard to the transition that is taking place, such as when and where to pay bills, etc.

There is a problem with an electrical transformer payment for usage which must be resolved before we can have Sr. Reyes continue with his assessment as to what should be done with the overall system. The original quote was US$1,000, but this was not paid as there's a question as to who should pay it. If I were the builder, I would have written the check on the spot as it is a small price to pay for this type of infraction. Then I would have asked the HOA to split the tab. But that is not what happened and so the saga continues.

In some areas of our community the transformers are old and antiquated, and probably need to be replaced. Do some houses need more electricity to provide for the numerous airconditioners that we've installed?

What would it cost to put the utilities underground?

These are just a few of the questions
that need to be answered if we are to do our part and modernize our infrastructure.

We will need to change the legal name as to whose name appears on the bill, because the present two billings are in the name of the Pasquaritos development which is no longer in existence. It's all coming together and I feel confident we can have this completed soon. Within 3 months maybe? Or you can say adios and someone else can jump in...the water's warm. Just kidding...I have every intention of delivering, but I could use your help. Up to this point I HAVE received tons of help from everyone and I would like to thank you all.

Joe Refsnes