2023-09-26 Letter From The RLCA President

In August 2023 a new RLCA Board was voted in and set a goal to end the past three years
of legal stalemate. Here is a brief overview of what has transpired since October of 2020.
 
Five members from the 2020 appointed RLCA board brought forth a 17-page lawsuit against
the Reflection Lake Community Association to force the court to appoint outside control of 
RLCA affairs (receivership). In 2020 we had a 40,000-reserve fund, all bills paid, a working budget, 
volunteer work force and annual dues of $157 per year. Currently we have a $16,000 reserve fund,
all bills paid, scaled back budget, a volunteer work force with annual dues of $300.00 per year.
 
The past three RLCA boards with the help of major donations from the membership spent over $146K
defending against lawsuits brought to force us to receivership. The last two boards thought they had a 
workable agreement, it seems to have just intensified the degree of legal activity. The lawsuit was 
amended in 2021 to insist that the Reflection Lake Water Association be transferred to a third-party
operator and would have no eastside oversight as a part of the Water System (the 2021 board did not 
sign off on this part of the agreement). Since 1975 the water system has been operated exclusively by 
those members using the water system.
 
The 2023 Reflection Water Association hit upon the idea to Merger with the RLCA. As a committee
local control of the water system would still be the eastside water users.
 
The Merger agreement that was rushed through and voted on at the end of the last boards term, lacked
a careful review.  A review found many red flags and possible unintended consequences. We are now 
working to edit the document prior to approval and resubmission.
 
The Mediated agreement states the Roads Committee (revenue collection) needs to be in accordance
with the bylaws. The Reflection Water Association will be turned over to a third-party operator, and
assure of no water system liability for those residing on the westside of the lake. The RWA has given
westside members a signed and notarized Indemnity Agreement giving zero liability to all westside 
residence. We will seek a legal opinion on this notarized Indemnity agreement. The Water Association 
is doing very well, but feels trapped between Mediation and Merger. The Roads Committee lost its 
Chairperson and lacks volunteers. No volunteers mean only the potholes will get filled.
 
Go to reflectionlake.net to read the text of the lawsuit. Just in this past month, I have received four
threats of new lawsuits; two threats if the mediation stops the merger and two threats if the merger 
is finalized. People on both sides of the issues need to stop with the lawyer welfare fund and end the
financial drain on members. The sad fact is all the members involved in this legal quagmire know
there is NO winner. Members on both sides of the issues could be right.  I just wonder about the fact
that after 50+ years of a low-cost recreational lake community operation, we are getting upended by 
a legal fight that has quickly increasing our dues and requires volunteers to respond like they are 
paid staff.
 
Our meetings are held on the first Tuesday of each month, at 6pm in the Community Center. Next
meeting is October 3rd. Your advice is welcome and our standing committees could use your help.
 
Jim Boothby
RLCA President
2023-09-26 Letter From The RLCA President
This entry was posted in News Letter. Bookmark the permalink.