Candidates Night
Opening Statement
Good evening everyone, and thank you for being here tonight. I am Ron Bomhoff I have been a proud member of LOP for almost 55 years. I have served on the Board for 3 years, led the Waterfowl Committee for 15 years, been president, then treasurer of SAC for over 10 years and many other volunteer positions. I am not an observer, I actively am involved in the community. I was self-employed since I was 28, formed 3 corporations, was a consultant to an auto manufacturer for 15 years and served as VP to a national auto club for 12 years. I know how a corporation should be governed. I am running for the Board because I feel that we need a change in direction at the Board level. I am a student of Davis-Stirling and our Governing Documents and if I don’t know the right way to do something relating to the governance of LOP, I know where to find it. True leadership requires the courage to face discomforts head-on, putting Members First and choosing the path of accountability, even when it isn't the easiest one to walk. I am running for the Board, again, because I feel the members need an advocate. On another note, I am concerned about 7 of the 13 questions being about money. Is there something that we are not being told? My platform is simple: Members First I advocate for: Protecting Members’ Rights Keeping association assessment reasonable Restoring Transparency Ensuring Accountability Why? Because this is YOUR ASSOCIATION! YOUR MONEY. YOUR COMMUNITY. An HOA Board is not a social club. It is a fiduciary body with legal and financial responsibilities. The Board is entrusted with protecting property values, maintaining our assets, enforcing rules fairly, and overseeing millions of dollars that belong to the members. The goal of the Board should be to have a fully-informed membership. Board members are required to follow state law, our CC&Rs, and our bylaws. Members have every right to expect those laws and governing documents to be followed consistently, fairly, and transparently. Our governing documents are very clear. The purpose of this Association is to maintain and manage our common areas and facilities, follow our governing documents, and to enhance the use and enjoyment of the community for all members. Transparency is not a threat to good governance, it is the foundation of good governance. The only way to establish trust is through better communication and transparency. If elected, I will advocate for openness, fiscal responsibility, respectful communication, and a Board that knows who it serves. Thank you
#1 : FINANCIAL STABILITY AND LONG-TERM PLANNING.
Our costs (insurance, labor, utilities) are rising faster than CPI. If revenue cannot keep pace, what actions to increase revenues and/or cost reductions would you recommend?
Rising costs are a real challenge for every association. Insurance, labor, utilities, and maintenance costs are increasing faster than inflation, so simply relying on dues increases is not a sustainable long-term strategy. Before asking members to pay more, we should first examine where the money is being spent and whether those expenditures are delivering value to the membership. Compensation now represents approximately 48% of the budget, and according to figures recently discussed by management, full-time staffing has increased from approximately 52 employees in 2021 to about 115 today. That does not automatically mean staffing levels are inappropriate, but it does mean the Board should carefully evaluate organizational efficiency, overtime, and long-term personnel costs to ensure resources are being used effectively. Insurance and legal costs are another important issue. In recent years, the Association has spent substantial amounts on litigation, special legal assessments, outside counsel, depositions, consultants, and experts. Regardless of where people stand on individual disputes, avoiding unnecessary conflict through better communication, transparency, and adherence to proper process can help reduce both financial costs and division within the community. I also believe financial oversight must improve. The Finance Committee was converted into a Service Team, which means many budget discussions now occur outside the view of the membership. At a time when costs are rising and financial decisions are becoming more important, I believe budget planning should be more open and transparent. A Finance Committee should be accountable to the elected Board and accessible to the membership. Good financial management starts with transparency, accountability, long-term planning, and making sure member dollars are being spent wisely before turning to additional fee increases.
#2: RISK EXPOSURE
What do you say is the biggest risk/challenges facing the association today?
One of the biggest challenges facing the Association today is communication, or more accurately, the lack of it. When communication breaks down, trust breaks down. And when trust breaks down, conflict, rumors, division, and even lawsuits can follow. I know firsthand that better communication could have prevented at least two lawsuits involving the Association, and I believe honest, transparent communication could have prevented others as well. Members do not expect perfection from the Board. What they do expect is openness, responsiveness, and respect. That is why I believe we need more direct interaction between the Board and the membership — not just updates flowing one direction. All members need the same information, not just those who attend the Board meeting. We have LOP News, a Facebook page and weekly email bulletins to convey Board information. I would support creating an “Evening with the Board”, on Zoom, where members can ask questions, express concerns, and provide input. The Board could then take whatever action is appropriate on the members' concerns. Good boards do not operate in isolation. They listen first, then act. The General Manager also plays an important role, but operational updates should primarily be provided in writing through online postings and LOP News so every member has equal access to the same information. Communication should not be selective. It should be transparent, consistent, and available to everyone. If we improve communication, many other problems become easier to solve — financial challenges, member frustration, misinformation, and community division. A strong community is built on trust. And trust begins with honest communication.
#3 : HOA RISING COST
If you had to reduce the operating budget by 10% without compromising safety or legal obligations, where would you start and why?
If I had to reduce the operating budget by 10% without compromising safety or legal obligations, I would start by building a multi-year financial plan. A reduction of that size cannot rely entirely on one-time cuts or temporary fixes. The Board should develop realistic 3- to 5-year projections covering reserve obligations, infrastructure needs, staffing levels, replacement timelines, operational forecasts, and subsidy trends. Without long-term planning, boards tend to defer problems until special assessments become unavoidable. The areas most likely to produce meaningful savings are: Stopping uncontrolled Food & Beverage losses Reducing legal conflict and dependence on outside counsel Tightening staffing and overtime management Rebidding vendor contracts and service agreements Delaying non-essential additions or capital improvements That combination could possibly approach a 10% reduction without damaging core services or violating Association obligations. I would also restart the Finance Committee as an active working committee that reports directly to the Board. One of its first responsibilities would be conducting a comprehensive financial review and helping construct a five-year operating and reserve plan. The Committee, together with the Board liaison, should be authorized to interview department heads and employees to better understand operational inefficiencies, recurring cost drivers, and opportunities for long-term savings. The people closest to the daily operations often know where waste exists and where improvements can be made without reducing service quality. The goal should not simply be cutting costs for one budget cycle. The goal should be creating a financially sustainable Association that plans ahead, maintains its assets properly, and minimizes the risk of future financial emergencies. The Board should understand the difference between Wants and Needs and prioritize Needs.
#4: GOVERNANCE AND DECISION-MAKING
How do you balance member feedback with making unpopular but necessary decisions?
One way to balance member feedback with difficult decisions is to remember that listening and leadership are not opposites. Good boards do both. First, you listen to the members, and you respond to them. People are far more willing to accept difficult decisions when they feel heard, respected, and informed. Transparency prevents problems; it doesn’t create them. The Association is the members. The Board is simply charged with operating the Association on their behalf. That means communication cannot be treated as an inconvenience, it is part of the Board’s responsibility. Member feedback should be part of every major decision, especially when those decisions affect assessments, amenities, rules, or long-term finances. Even when the Board ultimately has to make an unpopular decision, members deserve to understand: why it is necessary, what alternatives were considered, and how the decision protects the long-term health of the community. Too often, frustration grows not because of the decision itself, but because members feel shut out of the process. For example, over 98% of our members have emails on the LOP Members List. Online voting could be used for relatively low cost which could increase participation and reduce a lot of unnecessary division and bad feelings. I believe the best Boards do not fear member involvement. They encourage it. At the end of the day, fiduciary duty is not just about protecting finances. It is also about protecting trust. And trust is built when members are informed, included, and treated like partners in the future of the Association.
#5 : GENERAL QUESTIONS
What is one decision you believe the board may need to make in the next 2 to 3 years that could be unpopular but necessary?
One difficult but necessary decision the Board may need to make in the next few years is finally addressing Lake Sediment Removal in a serious, transparent, and financially responsible way. And to be clear - sediment removal is not the same as dredging. For the last two LRSP surveys, lake sediment removal has consistently ranked at or near the top of member priorities. The focus would primarily be on sediment accumulation in coves and problem areas before conditions become even more expensive to correct. This issue affects far more than appearance. Excess sediment contributes to weeds, poor water quality, bacteria concerns, leeches, and declining fish habitat. Removing sediment would improve water quality, improve the fishery, and benefit both the health of the lake and the health of our members. I have reviewed the estimate that the LRSP Chair presented to the General Manager and Operations Manager, and the cost to address one cove per year is actually very modest - especially if approached incrementally over a period of years. The larger issue is this: Lake sediment removal is not optional. Maintaining the lake is part of the Association’s responsibility to protect one of our most important assets and preserve property values. Yet for years, this issue has largely been ignored and not properly incorporated into the Reserve Study or long-term financial planning. The common response from leadership has been, “There is no money for sediment removal.” But that is exactly why reserve planning exists. The purpose of the Capital Reserve Fund is to prepare for major maintenance obligations before they become emergencies. The lake is our signature amenity. Preserving it is directly tied to protecting property values, maintaining the health of the community, and fulfilling the Association’s obligations to its members. Good leadership means addressing problems before they become crises- and doing it openly, honestly, and with a long-term plan.
#6 : SB1007 (FAIR AND AFFORDABLE HOA ACT)
The financial health and upkeep of our valued amenities could be affected by California’s proposed new Fair and Affordable HOA Act known as SB 1007. How do you think the bill will impact the community?
SB 1007 will put the power to assess members in the hands of the members. Yes, it will certainly create challenges for the Board, but I also believe it creates an opportunity for better planning, stronger member involvement, and greater accountability. The easy answer is to say: “Assessments will just have to go up.” I don’t believe that should ever be the first answer! According to the author of the bill, Senator Caroline Menjivar: “... many (HOA members) find their homeownership dreams destabilized by the volatile and sometimes arbitrary escalation of homeowner association fees,”. “Protecting homeowners’ financial stability requires more HOA oversight, including rules for transparency, financial accountability, and due process, keeping these monthly costs reasonable and predictable for homeowners who are on a tight budget.” Who can not relate to that? If the Board has to get member approval for an assessment increase over inflation, how would they do that? With nearly 98% of members reachable by email, digital elections could dramatically reduce costs and increase participation. That is a practical solution that deserves serious consideration. If our governing documents stand in the way, then we should discuss updating the Bylaws. At the end of the day, this is the members’ association and the members’ money. SB 1007 would place more major spending decisions directly in the hands of the membership, where many people believe they belong. If the Board believes assessments must rise beyond inflation, then they should clearly explain: Why the increase is necessary What alternatives were considered What cost reductions were attempted What the consequences are of delaying or rejecting the expense When members are informed, respected, and involved, they are far more likely to support necessary decisions.
#7 : AMENITIES
If members want improvements, but funds are limited, how would you prioritize which amenities to invest in?
There are two types of improvements. One is things we want, called discretionary spending, and the other is things we are obligated to repair, replace, restore or maintain, which I call necessary spending. It looks like you are asking about discretionary spending and not about necessary spending. My first thought was “What do you do at home if you don’t have enough money for discretionary spending?” For discretionary spending or “improvements” meaning new amenities or new projects, we need to be honest about the difference between needs and wants. New projects, like expanded facilities, or other additions, are capital improvements. They are not maintenance. They are not necessities. They are things we may want as a community. If the members truly want new amenities, then the members should be willing to pay for them through a separate Capital Addition assessment, in addition to the regular assessments that fund operations and maintenance. We already have a funding system for the things we need. It’s called the Capital Reserve Fund. Right now, approximately $1.8 million per year goes into that account to repair, replace, restore, and maintain the assets we already own - roads, gates, facilities, equipment, and infrastructure that the Association is obligated to maintain. Reserve funds are legally protected for those purposes. That fund is not supposed to be used as a piggy bank for new projects. So our priority should be straightforward: Protect and maintain the amenities we already have. Preserve property values by funding reserves properly. Keep the Association financially stable. Then , and only then, discuss new projects the members are willing to fund separately. The lake, roads, dams, utilities, and core infrastructure are needs. “New stuff” is a want. A responsible Board knows the difference.
#8 : FINANCIAL STABILITY AND LONG-TERM PLANNING
At what point would you support a special assessment, and how would you justify it to the members?
If there is a major emergency, infrastructure failure, natural disaster, or legally required repair that cannot reasonably be delayed, a special assessment may be necessary to protect the community and property values. However, members should not be treated like an unlimited source of money every time planning falls short. A special assessment should never be the first solution. The Board should first examine cost reductions, project prioritization, reserve planning, insurance coverage, and other financial options before asking members to pay more. I would support a special assessment only when it is truly necessary, unavoidable, and fully explained to the membership. The members deserve complete transparency regarding why the money is needed, what alternatives were considered, and how the funds will be used. The association belongs to the members, and the Board has a fiduciary responsibility to manage their money carefully and honestly. If additional funding is required, the Board should be able to clearly justify it in good conscience. The first questions should always be: Was the original budget inaccurate? Was this caused by an unexpected expense beyond the Association’s control? Was the expense foreseeable and ignored? Were reserve funds properly planned and protected? Did the Board or management make decisions that increased the financial risk? If a special assessment ever became necessary, I would insist on: Full disclosure of the reason and supporting financial data Open communication with the membership A clear explanation of why existing funds are insufficient Accountability for how the situation occurred A detailed plan showing exactly how the money will be spent Members are far more willing to support difficult decisions when they are treated honestly, informed properly, and respected throughout the process.
#9 : LAKE HEALTH
What is your view on funding long-term lake sustainability projects if they require significant financial investment?
This question has already been answered. The lake is no different than the roads, the golf course, golf equipment, facilities, infrastructure, autos, parks, etc. The Capital Reserve Fund is the long-term lake sustainability plan! Lake sustainability is not negotiable. The lake is not a discretionary expense. The Board has a fiduciary, moral and practical obligation to ensure the health and welfare of the Lake. The lake is our number one amenity. If we lose the lake, or allow its condition to decline, property values across the community will suffer. A clean, healthy, sustainable lake is not a luxury item - it is a core asset of the Association, and the Board has a fiduciary obligation to maintain it just like our roads, dams, golf course, infrastructure, and other major assets. The Reserve Study is supposed to function as a long-term savings plan, estimating future costs for the repair, restoration, replacement, and maintenance of all the assets we already own. Too often, people mistakenly view reserves as a discretionary spending account, when in reality they are intended to prepare responsibly, for known future obligations. A sediment removal plan should be in the Reserve Study! Unfortunately, the projected costs associated with long-term lake maintenance and sustainability have not been properly reflected in the Reserve Study for many years. This should not be treated as some sudden crisis that appeared overnight. We have known for more than 20 years that significant lake work would eventually be necessary, yet the issue has repeatedly been deferred and pushed into the future. Responsible leadership means acknowledging those obligations honestly, planning for them early, and funding them responsibly over time instead of kicking the can down the road for the next Board or the next generation of members to deal with. My position is simple: protect the lake, plan responsibly, use reserves for their intended purpose, and address long-term needs before they become emergencies.
#10 : GOVERNANCE AND DECISION-MAKING
How do you handle situations where you disagree with a majority or decision?
Effective leadership requires collaboration, respect, and open discussion - especially when there are differing opinions. An HOA Board is not a social club. It is a fiduciary body responsible for protecting property values, enforcing the governing documents fairly, and overseeing millions of dollars in member assets. Board members have a duty to think independently, ask questions, and make informed decisions. Differences of opinion are normal, and in many cases they are healthy. Good decisions are often made when different viewpoints are openly discussed and evaluated respectfully. I believe disagreement should never become personal. It should stay focused on facts, transparency, and what is best for the community as a whole. When I disagree with the majority, I will respectfully state my position, explain my reasoning, and make sure the concerns of members are considered. Once the Board has debated the issue and a lawful decision is made, the Board must move forward professionally and work together. I have always believed in a “Members First” approach. That means I will continue to ask questions, speak up when necessary, and advocate for transparency and accountability, even when my position may not be the most popular one in the room. But, I will not compromise the members' trust when I believe the law or governing documents have been violated. Strong boards are not built on everyone always agreeing. They are built on professionalism, honesty, and the willingness to put the community ahead of personalities or politics.
#11: FOOD AND BEVERAGE
What is the appropriate role and financial model for the LOPA’s Food and Beverage operations? The Food and Beverages continues operating with a budget deficit, would you support increasing the subsidy from dues, restructuring to reduce losses, eliminating the service, or a combination? Please explain your reasoning.
Food and Beverage has historically operated at a deficit, and that is not unique to Lake of the Pines. In many private communities, these operations are considered an amenity that helps support community life, property values, and member enjoyment. For decades, members here have subsidized Food & Beverage operations, and I support continuing a reasonable subsidy because it is an important part of what makes our community special. That said, support for Food & Beverage does not mean giving it a blank check. One of the smartest things we could do is bring member expertise back into the process. I remember that when we used to have a Food & Beverage Committee, Lake of the Pines had many highly qualified members with restaurant, hospitality, finance, and business experience who were on the committee. Members were willing to volunteer their time and ideas. We should be using that talent. When an operation comes in 49% over budget, the Board has a fiduciary responsibility to ask hard questions, identify the causes, and make corrections where needed. Before asking members to pay more through higher dues, we should first examine management practices, staffing models, purchasing, menu performance, scheduling, pricing, and operational efficiency. I believe the right approach is a combination of maintaining the service while aggressively working to reduce unnecessary losses and improve accountability. The goal should not necessarily be to make Food & Beverage profitable. The goal should be to operate it responsibly, transparently, and as efficiently as possible while still providing a quality experience for members. Good governance means protecting both our community amenities and our members’ money at the same time.
#12 : GENERAL QUESTIONS
As the current or former members of the board of directors, what accomplishment are you most proud of on the board that has contributed to making Lake of the Pines a better community?
As a former Director, one accomplishment I am especially proud of is being a voice for the members as a strong advocate for fiscal responsibility. Some years ago, I opposed the proposal to use $1.8 million from the Capital Reserve Fund for the Golf Course Master Plan. I believed then, and still believe today, that reserve funds exist to protect the long-term financial stability of the Association by repairing and replacing existing assets, not funding large discretionary capital expansion projects. There is an important difference between Needs and Wants. Today we are having serious discussions about rising costs, reserve funding, and the possibility of future special assessments. Imagine where we would be financially if $1.8 million had been removed from reserves for that project. Instead, many golf course improvements have continued over time in a more measured and financially responsible way, including completing some projects in-house to reduce costs. I’m proud that I helped raise awareness and discussion about the legal and fiduciary responsibilities surrounding reserve funds. The Capital Reserve Fund should be used for repairing, replacing, restoring, and maintaining the components the Association is obligated to maintain - not as a convenient source of cash for unrelated projects. I pushed for accountability when reserve funds were improperly used to purchase 18 new golf carts to expand the rental fleet, and the Board ultimately repaid the Capital Reserve Fund. Beyond financial stewardship, I also take pride in leading the Waterfowl Management Program for 15 years. That effort has helped protect water quality, improve safety, preserve our amenities, and maintain the natural beauty that makes Lake of the Pines such a special community. Good governance is not about spending the most money. It is about protecting member assets, planning responsibly, and making decisions that keep Lake of the Pines financially strong for future generations.
Closing Statement
MY PLEDGE TO LOP MEMBERS I am committed to Honest, Lawful, and Accountable Governance I WILL FOLLOW THE LAW I WILL FOLLOW MY FIDUCIARY DUTY AND PUT MEMBERS FIRST I WILL DEMAND TRANSPARENCY I WILL ENSURE FAIR ENFORCEMENT I WILL PRACTICE FISCAL DISCIPLINE I WILL PROVIDE REAL OVERSIGHT I WILL RESPECT THE CHAIN OF AUTHORITY I WILL AVOID CONFLICTS OF INTEREST I WILL PROTECT FAIR ELECTIONS I WILL CONTINUOUSLY EDUCATE MYSELF I understand that serving on the Board is a legal responsibility, not a title. I will be fully accountable to the members of this Association. It is up to the members to hold your Board to a higher standard. Expect professionalism. Demand accountability. As a member, a candidate and hopefully as a Director, I will be available to all members to respectfully discuss HOA living. You can contact me by going to my website. My answers to all 12 questions will be on my website: Website:RonForLOP.com Email: RonForLOP@gmail.com YOUR ASSOCIATION! YOUR MONEY! YOUR COMMUNITY! THANK YOU