Friday, June 10, 2016
RA Board Governance Committee to consider Board-dominated task force to study limited aspects of the Tetra purchase fiasco.
Below is the agenda and attachments for next week's Board Governance Committee (BGC) meeting, June 14, 2016, at 6:30PM. It includes an agenda item called "Lake House Budget Task Force," which is intended to examine the cost overruns experienced in renovating the Tetra office building.
As proposed, the "task force" would include six members of the RA Board of Directors, (a) all of whom voted to approve the referendum question to purchase the Tetra office building last year, and (b) all of whom (except Ray Wedell and Lucinda Shannon) voted to approve the addition of $430,000 to the Tetra renovation budget last month. In addition, the task force would have a member from the Fiscal Committee and a community representative.
The agenda for the task force is also quite limited and narrow. From the beginning, it fails to address why the proposed Tetra acquisition matter was presented to RA in the first place. Most recently, it fails to address why the Board did not carry out its fiduciary responsibility to understand the causes of the renovation cost overruns before approving the budget increase and determining exactly where the funds to use in that budget increase were coming from. And there are many other critical issues between that are not covered by this constrained scope of work.
It is a task force designed not to do a thorough job of examining why RA and the Board of Directors moved to buy the Tetra property at twice its market price, misled the public in the process, and did not disclose near-triple cost overruns until the Board was pressed to act immediately, among other shortcomings. In short, the proposed RA task force is a sham.