SunCrest Relationships Overview: How Things Work

(click on the picture to see the full version)

Purpose Statement: My name is DeLaina Tonks, and I have lived in SunCrest since 2006. In 2007 several hundred of us in SunCrest successfully worked to change some boundary legislation in a special session of the legislature in a four-month time span (see previous post). My husband, Paul, ran for Draper City Council that same year, in an effort to have more representation for SunCrest. He lost the election but we both gained valuable insights into the process and got a front row seat to the “how to get things done” seminar called “life”.  

I have done my best to frame and explain the most critical relationships that affect us as SunCrest Residents. I’m interested in sharing this information and fleshing out the historical context, especially with newer residents who may have missed out on the fun, fun times of 2007.

I believe that education empowers and makes us stronger as a community. Some guy once said that those who don’t learn history are doomed to repeat it. (I read that on the internet, so it must be true.) I have seen that start to happen in SunCrest and have been contemplating how best to voice my thoughts from my point of view and this is what has come of it.

WHO HOLDS THE POWER?

Most community dissension and frustration in SunCrest is caused by not fully understanding who holds authority over which issues, so I thought it would be helpful to illustrate, above, and add a narrative to explain.

Every entity, or organization is governed by a set of rules, which are legally binding. It’s critical to know who has the power to make changes. Otherwise, it’s the equivalent of going in and yelling at Arby’s employees because Taco Bell got your order wrong.

SUNCREST HOA

So, let’s start with the SunCrest owners or homeowners association (OA or HOA). First, which documents govern how the HOA operates?

Articles of Incorporation: When any new entity is legally organized, one of the first things to file are the Articles of Incorporation, the entity's constitution, which defines the responsibilities of the directors, the kind of business to be undertaken, and the means by which the shareholders exert control over the board of directors.

Bylaws: According to Wikipedia, a by-law is a rule or law established by an organization or community to regulate itself, as allowed or provided for by some higher authority. The higher authority, generally a legislature or some other governmental body, establishes the degree of control that the by-laws may exercise. By-laws may be established by entities such as a business corporation, a neighborhood association, or depending on the jurisdiction, a municipality.

Next, let’s determine what the HOA has the authority to do.  The HOA determines WHAT things will be done, in order to maintain compliance with the governing documents. Typically, the management company implements the HOW and oversees the day to day operations of the community, but they are employed by and report to the HOA Board.

HOA RESPONSIBILITIES

• First, the HOA is responsible for the enforcement of the CCRs, the covenants, conditions and restrictions, which are the governing documents that outline how the homeowners association operates and what rules the owners -- and their tenants and guests -- must obey. These legal documents and rules are legally enforceable by the homeowners association, unless a specific provision conflicts with federal, state or local laws. (Note, the SunCrest HOA contracts with a property management company, CCMC, who is tasked with making sure the CC&Rs are being met.) 

• The SunCrest HOA has oversight over the pool, the clubhouse and any common areas. 

• The HOA also ensures there are a variety of activities and community get-togethers to strengthen our neighborhoods. 

That doesn’t sound too bad, does it? Now let’s tackle the Declarant and then circle back to Draper City.

THE DECLARANT(S)
DECLARANT #1: Terrabrook: The SunCrest DECLARANT (fancy legal term for the owner of the development) was initially Terrabrook, a developer who went bankrupt in 2008ish.

DECLARANT #2: Raddon Brothers, MCO, Zions Bank: After some “almost done deals” fell through, Zions Bank purchased SunCrest and thereby became the new DECLARANT.

DECLARANT #3: Draper City: In September of 2012, Draper City purchased SunCrest. Guess who the declarant is now? Yes, Draper City. Here’s where it gets a little confusing.

The Master Development Agreement (MDA) outlines parcels, lots, subdivisions, number of homes (which was initially 3700) etc. and is a legal contract. Control of the OA Board is proportional to who owns the majority of the property. When the development was new, the declarant held all of the board seats. As more homes were built and sold, one resident seat became available. Barbara Blackmer was the first resident board member, and Paul Tonks is the current one.

The by-laws indicate that the DECLARANT (which is Draper City) maintains 4 of 5 Owners Association board seats based on the percentage of build out. However, the DECLARANT decided to decrease the number of households that could be built in SunCrest. That changed the percentage of finished homes vs. yet-to-be-finished homes, creating an opportunity for more than just one resident OA Board member.

The OA Board (one resident + 4 declarant seats) has met quarterly since Draper City became the DECLARANT, and turning three board seats over to the residents has been a discussion item since last March.

At the September OA meeting, the OA Board announced that those three board positions will be granted to the residents; thereby turning the OA into an HOA. These seats are by appointment by the current board members, but there was community input from voting members, with the results including Amy Baird, Doyle Judd and Aimee Hudak as new OA board members. These positions will remain in effect until the Annual meeting in June.

DRAPER CITY (the City, not the DECLARANT this time)

Still with me? Great! Let’s wrap up with Draper City.

Draper City is governed by municipal code/city ordinances. Draper is responsible for road maintenance, water, most of the parks, the trails, potentially a salt dome, annnnd, the SunCrest Market. Additionally, Draper City has been granted authority by the legislature to administer and manage the Traverse Ridge Special Service District tax. There are actually several Special Service Districts in the state.

TWELVE THINGS I WISH I HAD KNOWN IN SIMILAR SITUATIONS, AKA “HOW TO GET THE JOB DONE”

1. POWER: Determine who holds the authority to make the change you want to see made. Screaming at FedEx because UPS lost your package will get you pretty far down a road to absolutely nowhere.

2. KNOW YOUR FACTS, PROCESS and HISTORY: Do your homework. Study the governing documents and make sure you understand them. Make sure you know the entire process from beginning to end and every stakeholder along the way. Ask neighbors who have been here a long time about any history you should be aware of, or read the SunCrest Residents blog. For example, the salt dome - this has been an item of discussion for five years off and on.

3. JOIN THE CONVERSATION: Determine what conversation is currently happening. We’ve all had this happen: You’re standing with a group of friends talking about the big game, when another friend arrives and without bothering to figure out the topic of conversation, he launches into the movie he saw last night. Take the time to join the current conversation.

4. COMBINE FORCES: Do an analysis to determine if other groups are already working toward the same objective. Talk to them and see if there are common interests.

5. TRUST BUT VERIFY: If someone gives you information, ask for the source and do some fact-checking up front. Determine what agenda is in play and don’t allow yourself to unwittingly become a pawn in someone else’s game.

6. CLOUT VS. INFLUENCE: Analyze how much clout you or your organization has. For example, SunCrest has about 6% of Draper voters, so threatening to throw an election to get what you want doesn’t carry any weight. (I know because we tried it in 2007, before I had learned everything I’m trying to share here!) If you don’t have the numbers to gain clout, it makes much more strategic sense to gain INFLUENCE instead.

7. NICE FIRST, THEN PITCHFORKS: And above all, try “nice” first. There are absolutely times when torches and pitchforks are appropriate, once other avenues have been exhausted, but that should not be the go-to strategy right out of the chute. (Anyone who was here in 2007 knows that I am well-versed in pitchforkery when needed, however, I have discovered that building relationships and influence has served SunCrest better than torches.)

8. COMPROMISE: Be willing to give and take. If there is a win-win, terrific. If not, determine what you are willing to bend on. Otherwise you will break.

9. COST/BENEFIT: Do a cost-benefit analysis. Does what you gain outweigh what it will cost you? Sometimes it is completely worth the effort, and other times it isn’t, but it’s important to have taken that into consideration.

10. KEEP BRIDGES INTACT: Don’t burn bridges. You may need them later.

11. ALTERNATE POINT OF VIEW: Walk a mile or two in others’ shoes. Being an elected anything is hard. How do you handle a situation where your next door neighbor wants you to vote for the power plant because he works there and your backdoor neighbors want it shut down to save the environment. You represent both of those families and have to understand that you will never make everybody happy, ever. Competing agendas from all sides bombard our elected officials, board members etc. and they have to rely on principle to make an informed decision to proceed.

12. UNDERSTAND THE SYSTEM: Representative democracy – good term to know. You vote for the person you think will do the best job and it is their job to represent you. They don’t need to take a poll to determine which way the wind is blowing before taking a stand on an issue. They do what they feel is right and if enough constituents don’t like it then they can vote the person out. It is not a majority rule type of system.