The Board has called a special meeting for next week Tuesday, August 18 at 6:30 PM to decide what to do about potential COVID-19 liability and our amenity center (pool and playground). You can find Zoom conference information in the attached. This meeting will have a member comment period so the Board can hear feedback from the members. Please view the attached meeting notice for the Meadows at Kyle community.
Join Zoom Meeting
Call In Number: 1-346-248-7799
Meeting ID: 985 0413 0023
For context, here is a message from HOA President, Cody DeSalvo:
Hi neighbors, I’m posting this in good faith to let everyone know about a significant development related to the HOA’s COVID-19 response that the HOA Board discussed at the meeting tonight. It is a long note, but I recommend everyone take a second to read it.
Tonight, the HOA decided to hire a lawyer to provide a legal opinion outlining all the procedures we will need to adopt to keep the pool and playground open. The lawyer will also offer their legal risk assessment on continuing to keep the pool open under several scenarios.
The HOA keeps several insurance products to protect our communal property and the HOA finances in the event of damage or liability incidents. We even have insurance that covers decisions that the HOA Board of Directors might make that results in a civil suit. For most events, our insurance company acts as a shield for the HOA and the Board members against personal liability. In those cases, if someone sues the HOA, the insurance company hires the lawyers; they manage the case, they deal with the financial payout. The HOA and Board members seldom come out of pocket. Even if the HOA lost in court, the insurance company pays out the award or settlement.
Last week we learned that none of our insurance policies protect the HOA organization or the individual Board of Directors from any COVID 19 related lawsuits. What does this mean in layman’s terms?
If the HOA is ever sued for something COVID-19 related, the defense in that lawsuit would have to be paid directly out of the HOA budget. If any of the board members are named explicitly in the case, we would have to retain lawyers and fight the case in court out of our individual pockets. We are not talking about small sums of money. Personally, that is a scary prospect – that I could be asked to drain my family savings to defend keeping the pool and playground open.
Board members are left with a difficult choice to decide what to do and if it is in the best financial interest of the HOA and our families to close the pool and playground. We did not choose to close anything at tonight’s meeting, but we will most likely need to make that decision before the end of August. We are working on hosting a Facebook live Townhall event and we may have a special board meeting to collect neighborhood input in a week or two. This issue was too important to wait until published meeting minutes or the next standing meeting of the Board. I cannot guarantee I have all the answers to your questions right now, but I encourage you to pay attention to your emails, the Facebook group, and Townsquare for opportunities to provide feedback.