Lake House/Tetra Review On Schedule: Michael Sanio, RA Board of Directors vice president, said at Thursday night’s meeting that the independent review of the Tetra/Lake House purchase remains on track to be submitted by StoneTurn Group by midnight Tuesday. Sanio said RA’s Tetra Review Committee is “very pleased with the progress” that has been made, and that the review will be made public once it has been seen by all board members. [Reston Association]
South Lakes High Student Government Honored — The South Lakes High School SGA is one of 21 statewide that have been recognized with the Virginia Student Councils Achievement Award for 2016-17. [Fairfax County Public Schools]
SLHS Sophomore Selected for IT Award — Anika Kumar has been selected as a 2017 Virginia affiliate winner of the National Center for Women and Information Technology Award for Aspirations in Computing. Kumar, who became interested in computers when she took a class in middle school, has produced her own video game. [Fairfax County Public Schools]
Teen Job Fairs Slated for March, April — The 2017 Fairfax County Teen Job Fairs and Resume Building Workshops will be held at Chantilly High School, Oakton High School, West Springfield High School and South County Secondary School. [Fairfax County]
Photo of Lake Anne sunrise this morning via Instagram user @annemusicmarkets
Many Reston residents turned out Thursday afternoon to give their two cents to the forensic accounting firm tasked with analyzing the cost overruns associated with Reston Association’s purchase of the Tetra/Lake House facility.
Deirdre Flaherty, partner and co-founder of the StoneTurn Group, joined RA Vice President Michael Sanio and Eric Carr, chair of RA’s Tetra Review Committee, on a panel to hear statements from Reston citizens. StoneTurn has been contracted by the Reston Association Board of Directors at a cost not to exceed $45,000 to conduct their review by the end of February.
The forum was structured loosely, with members provided three minutes to take the podium and speak individually, or five minutes to speak on behalf of a group. It broke down into informal conversation throughout, however, as residents asked questions from the audience and demanded answers regarding what exactly the firm is planning to find — and how those findings will be presented.
“The intention is to make the report public when it is finished,” Sanio said when pressed about how the findings would be shared with the community. “That’s why we have the consultant doing the work.”
Many residents shared their skepticism about the transparency of the review process, though.
“It is vitally important… that your final report is published, unaltered and unredacted,” said Dick Stillson, who was a member of the MediaWorld group that had offered to do the work for a fee of $1. Negotiations ended, Stillson said, in part over RA’s requirement that findings be confidential. “There is no way that the community will have confidence in the work that you’ve done, or in fact that the board really did ask for an independent review of the Tetra purchase, if that report is not published in its complete form and made available to the community.”
RA members voted in a referendum in May 2015 to allow the association to purchase the Tetra property for $2.6 million — a cost more than double its tax assessment. Renovations made on the property, which were expected to cost $259,000, ended up costing nearly three times that. RA has since opened the renovated facility as The Lake House.
The goal of the review, according to Reston Association, is to “identify areas for process improvement, potential changes to internal controls and/or modification to governance procedures to help ensure situations like the Lake House cost overrun can be avoided in the future.” Sanio said the goal is twofold: to determine what transpired during the Tetra purchase and to make sure something similar doesn’t happen again.
Several residents at the meeting inquired why the StoneTurn contract was not made available on the Reston Association website for public review; the 13-page document was later added to the site.
Flaherty told residents she is extremely confident the review will be completed to its scope and within the time frame allotted. Some residents, though, questioned how intricacies of the matter including culpability, conflicts of interest and potential law-breaking would be handled.
“The scope of our work isn’t to do that right now,” Flaherty said. “[But] whatever we see will be divulged.”
While Flaherty said it is not the reviewer’s responsibility to go to the authorities with any evidence of illegal activity, both Sanio and Carr said they would do so if necessary.
Terry Maynard, of the Reston 20/20 Committee, said a “vigorous investigation” is needed to get to the bottom of “the greatest leadership crisis in the history of the Reston Association.”
“Never have so many people in Reston’s leadership on the RA Board of Directors and among its senior staff behaved so unethically if not outright illegally,” Maynard said. “[They have] demonstrated such complete incompetence in analyzing and managing the finances of a single RA project, and used secrecy behind a legal facade to protect the guilty while so neglecting the interests of the community.”
Sanio said members of the RA board have endured a lot of negativity from the community throughout the process.
“I’ve heard lots of accusations, I’ve read accusations, some of them unfounded, and I think for those that serve on the board as volunteers, you’ve put those individuals that commit untold hours in your service into a very, very difficult position,” he said. “I would urge you to reflect on that. These are your peers in the community, and they’ve stepped forward to be helpful. … I think that those that have stepped forward deserve the respect.”
“We too are looking for answers as well, and I’m confident with the competency of the StoneTurn group and Dee (Flaherty) here, that we’ll get what we need,” he said.
But Dennis Hays, of the Reston Citizens Association board, said the meeting didn’t clear up many of the issues people have about the process. In fact, he said, the opposite occurred.
“I’m more concerned now at the end of this meeting than I was in the beginning,” he said. “If we get a report that just says, ‘Here’s what we need to do in the future,’ then we have wasted $45,000.”
Anyone with comments to share who was unable to attend Thursday’s community session is encouraged to email [email protected].
Updated at 6:25 p.m. after the meeting time was changed from 3-5 p.m. to 3-8 p.m.
Reston Association members will have their chance later this week to address the firm hired by the RA Board of Directors to review costs associated with the Lake House purchase.
StoneTurn Group LLC will conduct the meeting Thursday from 3-8 p.m. at RA’s headquarters (12001 Sunrise Valley Drive). It was announced at the RA board’s Jan. 27 meeting that the firm would conduct a review of the board’s handling of the property, at a cost of $45,000.
RA members voted in a referendum in May 2015 to allow the association to purchase the Tetra property for $2.6 million — a cost more than double its tax assessment. Renovations made on the property, which were expected to cost $259,000, ended up costing nearly three times that.
In accordance with RA’s request for proposal document, StoneTurn Group is focused on “identify[ing] areas for process improvement, potential changes to internal controls and/or modification to governance procedures to help ensure situations like the Lake House cost overrun can be avoided in the future,” according to a press release from Reston Association.
The renovated Lake House was opened to members last year, and the association is actively promoting the facility to individuals and businesses looking to lease the space.
As with the member-comment period during RA board meetings, members who would like to speak at Thursday’s meeting will be given three minutes (individuals) or five minutes (if representing a group).
The Reston Association Board of Directors has agreed to a $45,000 independent review of its Lake House project, to be conducted by the StoneTurn Group. Terms of the review require the work to be completed by Feb. 28.
According to information provided by the Reston Association board about the deal:
StoneTurn was one of the original finalists chosen by the Tetra Review Committee to conduct the impartial study. After a local company, Mediaworld Ventures LLC, terminated contract negotiations with the Reston Association earlier this month, the board moved to enter into negotiations with StoneTurn immediately during its regular monthly meeting Thursday.
Several concerned residents addressed the board Thursday evening, following the announcement by Vice President Michael Sanio, to share their thoughts about the ongoing saga. Karen Wilkens, of Waterview Cluster, said she is frustrated about what she sees as continued overspending on the project.
“I’ve lost a lot of faith in Reston Association, and I’m stunned to hear that you’re contemplating signing a contract that would spend an additional $45,000 on that property,” she said. “The amount of money that was overspent, it’s gross negligence.”
The Lake House property was purchased from Tetra in 2015, for a cost nearly double its tax assessment. Renovations on the property to transform it into a community building have cost three times more than expected. An independent audit was requested.
Mediaworld Ventures LLC came together and announced they would do the work for a $1 fee. After months of negotiations with the RA board over the details, that proposal fell through with finger-pointing from both sides.
Reston resident Jill Gallagher, a management consultant and former budget analyst, was a member of the Mediaworld committee. She addressed the board Thursday night and expressed her sorrow over the fact that the hard work the committee did was, they view, stonewalled by the RA board.
“I was very disappointed that we didn’t get the contract,” Gallagher said. “We had worked very hard from August until the end to try to understand what happened.”
Gallagher provided board members, for the record, with the assessment the committee had drawn up regarding the meeting at which the board voted on a referendum to purchase the property.
“We had many, many questions, including a two-hour executive session that occurred before the project was even presented. To members, it looks like a lot of the decisions were made before you even heard about the project,” Gallagher said. “A lot of things happened at that meeting that your members are not aware of. I think that is the source of this problem.”
Ed Abbott, representing Reston Recall, provided the board with a report on what his group — which has the expressed goal of having board members involved in the Tetra/Lake House purchase removed — has analyzed about the deal.
“The only way Reston gets back to its purpose as defined in the deed, articles of incorporation and bylaws, is to elect a board with a majority of members who will undertake a thorough evaluation of RA’s organization including but not limited to the senior staff leadership team,” Abbott said. “Reston Recall will be reaching out to the candidates in the upcoming election and supporting those that agree.”
Concerns about the quality of the board’s minutes were also brought up during the meeting — first by a director, Sherri Hebert, who questioned the report from a Dec. 7 special meeting with the Mediaworld committee.
“[The minutes] lacked any substance, meaning there was nothing in the minutes that even talked about why the meeting was happening, nor what some of the major concerns were within the discussions,” Hebert said. “I’d like to see the minutes be added to… to add some of that context to the minutes. Minutes should be written so that if we want to reflect on them at some future time, we know what happened.”
Board Secretary Eve Thompson said the board’s standard for minute-taking is not to try to capture the dialogue, but rather just to capture topics and decisions.
“I believe I followed the standard as I understood it,” Thompson said. “What else would one put? That people were upset? That people were happy? … I don’t think it’s realistic and it’s not the standard of any of our minute capture to try to do that.”
The Dec. 7 meeting was also not video recorded and placed on YouTube, as regular meetings are.
The board eventually agreed to re-assess the minutes from the Dec. 7 and Dec. 13 meetings and bring them back for approval at February’s meeting.
Citizens who spoke later in the meeting also expressed their feelings about what they see as bare-bones minutes. Resident James Dean said given controversial actions such as the Lake House purchase, residents deserve more from the board’s meeting reports.
“It may be usual for you to just record votes and actions,” Dean said. “[But] your membership wants more information from you than just a recording of your actions and your votes.”
The next meeting of the Reston Association Board of Directors is scheduled for Thursday, Feb. 23.
Among the items on the agenda for this month’s meeting of the Reston Association Board of Directors is a report on the status of the Lake House review. In addition, the Board’s executive session is scheduled in part for the purpose of discussing “contractual matters related to Tetra/Lake House review.”
Board Vice President Michael Sanio is scheduled to deliver the report during Thursday’s meeting. No details about its contents were made available within the meeting packet.
The Lake House, formerly known as the Tetra building, is located off Baron Cameron Avenue between Lake Newport Tennis and Brown’s Chapel Park. Reston Association passed a referendum to buy the building in May 2015 for $2.6 million. Needed renovations were budgeted for about $259,000; however, that number quickly ballooned to $655,000.
An independent review of that cost was planned, with a local group called Mediaworld Ventures LLC announcing they would do the work for a $1 fee. After months of negotiations over the details, that proposal fell through with finger-pointing from both sides.
Among other items on the agenda for the meeting are the following:
Overview of Elections & Referenda Resolution 3; Campaign Rules & Standards of Conduct
Public Hearing — Addition to Property Request Sunrise Square
RA Position on Reston Transportation Funding Plan
Fairfax County Specimen Tree Designation Request
Capital Improvement Planning — Lake Anne Dock & Dredging Project
The board meeting is scheduled for 6:30 p.m. Thursday at RA’s offices (12001 Sunrise Valley Drive).
This is an op-ed submitted by Mediaworld Ventures LLC. It does not reflect the opinions of Reston Now.
To our fellow Reston Association members,
We are the Reston residents who came together under Mediaworld Ventures LLC and were selected to conduct an independent review of Reston Association’s acquisition of the Lake House, and subsequent renovation budget overrun. We were selected over many applicants for our professional expertise, our commitment to service and our cost of $1. Our sole intent was to serve our membership and help Reston Association improve its processes.
From September until December, we were involved in detailed negotiations with Reston Association and its attorney over a consulting agreement that established the terms of the independent review. Our team worked countless hours reviewing and amending the 17-page agreement to ensure the review’s integrity and members’ interests were protected. The conditions presented to us were extremely restrictive and we felt they would hinder our ability to conduct a truly independent review. Further, the agreement did not guarantee a public release of the final report by the Reston Association, which our team felt was critical to “ensuring the concerns of the community were addressed” — a condition in the RFP, set by Reston Association, which we agreed to meet.
When we reached an impasse with the Reston Association attorney we requested a meeting with the Board. At a public meeting on Dec. 7, we highlighted four major issues that we felt would hinder our ability to fulfill our obligation. We believed the Board understood our concerns regarding the restrictive terms and tone of the agreement, and we hoped it would result in a more reasonable agreement, especially after we learned that the Board signed a simpler, four-page contract with another consulting firm. Although the revised agreement we received in return resolved some of our concerns, it contained additional terms and conditions leaving a number of issues unresolved. In spite of the Association’s offer to pay for liability insurance, we felt that there was still an unacceptable level of risk remaining in the last proposed revised draft. Given the almost three months of contending with some of the same issues we had raised earlier, we felt the likelihood that further negotiations would be productive were minimal and that it would be best to terminate the negotiations.
We are very disappointed that we could not come to terms with Reston Association on this work. A more detailed review of the contract negotiation can be found at http://reston2020.blogspot.com/2017/01/review-of-mediaworld-contract.html.
Sridhar Ganesan, President, Mediaworld Ventures LLC
Two years ago this month, under the leadership of former RA Board President Ken Kneuven, Reston’s homeowner association announced its deal with a local developer to purchase his property, the Tetra office building, for over twice its county-appraised value of $1.2 million. Thus began a long slide of Reston Association into bad governance and mismanagement.
How did this happen? We don’t know for sure, but we understand Kneuven and another former RA Board President, Rick Beyer, who lives on the shore of Lake Newport opposite the Tetra property, have been friends for some time. Beyer, who was active in supporting the RA Tetra purchase, and other Lake Newport homeowners were no doubt concerned that something untoward would happen to their view and, as a result, also their property values. It is not clear whether Beyer asked a favor from Kneuven in eliminating this risk by having RA pursue the purchase of the Tetra property, but what is clear is that after Kneuven left his RA post, he ended up working as a senior consultant in the company managed by Beyer.
As for the rest of us, RA and its Board justified paying $2.65 million in part by pointing out that a proposal had been drawn up to build a costly restaurant there twice the size of the Tetra building. RA didn’t bother to note, however, that the restaurant was never approved, nor would it have been given environmental restrictions and 14 easements on the property. Moreover, RA’s appraiser put the property’s “as is” value at just $1.1 million using the Income Approach, even lower than the county’s valuation. In fact, the Tetra property had been on and off the market with little interest for most of a decade.
Nonetheless, to sell the deal in a community referendum, RA “projected” that renovations, inside and out, would cost RA members just $259,000. To date, interior repairs alone have cost Restonians $692,000 — not counting $925,000 in seller contributions and a Comstock proffer to RA which could have been used for much better purposes — and an RA consultant projects proposed exterior improvements will cost $1.2 million.
On the other side of the ledger, RA projected rental income from a rent back agreement with the Tetra owners of more than $140,000 through 2016. Unfortunately, the sloppily written agreement allowed Tetra’s former owners to walk away at the end of 2015, resulting in an immediate $100,000 loss in RA revenues. RA scrambled to make up the shortfall, but — as of November — expected year-end cash flow losses reached $902,000, some $515,000 more than RA projected for 2016 during the Tetra referendum.
If publicly known at the time, these massive misstatements, mistakes, expenses and overruns would have doomed the purchase’s narrow community approval.
Indeed, the massive renovation cost overruns were not revealed until May 2016, although RA financial data indicated RA and presumably some Board members knew there would be huge overruns as early as February. Thus, RA members were denied that important information as they cast their ballots for RA Board members in February, including the re-election runs of two Board members who strongly supported the Tetra initiative, Eve Thompson and Danielle LaRosa. Of course, they won re-election in the absence of public knowledge of the huge cost overrun.
When the cost overruns were disclosed, even the complicit RA Board found this revealed reality a bit much. Under significant community pressure, it agreed last summer to contract for an independent review of the purchase and renovation.
After choosing to sign a pro bono $1 review contract with Mediaworld LLC, using a team of Reston volunteers expert in financial matters, a few members of the Board sabotaged its own by insisting on excessive RA control and contractor liability in multiple, lengthy contract drafts. A special Board meeting with the Mediaworld volunteers in December couldn’t salvage the negotiations — another obstructionist draft resulted — and the volunteers withdrew last week, explaining the multitude of reasons why.
The increasingly urgent question is: What are some members of RA’s Board and senior staff trying to conceal about the Tetra acquisition and renovation — and why? Did they engage in illegal, unethical or just plain stupid behavior? Unless there is a criminal investigation, the chances are dwindling Restonians will ever know who, how, why and when all this financial mischief occurred as the Board and staff continue to hide the truth any way they can. The future of honest, open, prudent governance in Reston has never looked more uncertain.
The RA Board 2017 election a month away is an opportunity to reverse the Board’s recent gross misbehavior. There are four openings and, if filled with candidates who seek to reform the RA Board and the way it does business, the Board could actually represent the interests of the community rather than the guilty. Pay attention to what candidates file and what they say about the handling of Tetra, including the need for an audit, the development of an RA ethics policy with teeth and openness in RA decision making. It could be your last chance in years for meaningful change in how our community is governed.
Terry Maynard, Co-Chair
Reston 20/20 Committee
Lake House Review: Work has still not begun on a review of how funds were handled to purchase and renovate what is now the Lake House at Lake Anne. It was decided an independent review was necessary after renovations ended up to be roughly three times what was budgeted, and money had to be borrowed from the Reston Association’s operating budget to cover the deficit. The RA Board previously went through months of negotiations with the firm MediaWorld, who had offered to do the review for just $1 if volunteers agreed to help with some of the busy work, but after more than two months of back and forth, it appears negotiations have been stalled or possibly terminated.
Development on the Horizon: Per the usual here in Reston, there are several major developments in the works around town. In particular, just before the holidays, more news broke about Vornado’s planned development near Wiehle-Reston East Metro, Comstock’s hopes for a development near Reston Station, and an approval for planned lofts by Pulte Homes near Reston Station.
Very Little Crime to Ruin the Holidays: Thankfully, very few crimes made headlines in the Reston area over the holidays. There were minor break-ins at the Carlton House condos at Reston Town Center and the Hidden Creek Country Club, and a tragic accident in D.C. involving a Herndon man. In a bit of good news, the community pulled together to help find a teen boy who went missing in North Reston within 24 hours.
Fourth Spot Opens Up on RA Board: Just before the Christmas and Chanukah holidays, North Point District Director Danielle LaRosa of the Reston Association Board of Directors tendered her resignation. LaRosa also serves as the board’s current treasurer. LaRosa’s seat joins three others that are opening up on the board when three-year terms come to an end in April, for a total of four out of the board’s nine seats up for election when voting begins March 3. The candidate elected to fill LaRosa’s seat will serve the remaining two years of her three-year term. A Candidate Information Session will take place tonight for those who want to learn more about running for the board.
As we kick off 2017, what are you most interested in or concerned about around Reston? Tell us what you most want Reston Now to cover in this new year.
(Updated 9:30 p.m. Tuesday to include statement from the Reston Association Board of Directors)
It appears the work between Reston Association and a local company to conduct an independent review of the Lake House renovations will not come to fruition.
In an email sent Monday morning to the Reston Association Board of Directors, among others, Mediaworld Ventures LLC President Sridhar Ganesan said he was cutting ties with the project:
Good Morning. It has been about 10 days since we sent the last letter to you and have had no response. Please consider this email as termination of our contract discussions. Wish you all a Happy New Year.
The “last letter” referenced by Ganesan in his email is one in which he claimed RA had been “granted… certain powers” that would “jeopardize the independence of the review.”
Ganesan also serves as president of the Reston Citizens Association. His group had proposed to conduct the audit for $1, with a team of four community-based reviewers.
The Lake House, located off Baron Cameron Avenue between Lake Newport Tennis and Brown’s Chapel Park, housed the Reston Visitors Center for about 20 years before it was acquired in 2003 by Tetra Partners (now Lauer Commercial) and used as offices.
Reston Association passed its referendum to buy the building in May 2015, authorizing a purchase cost of $2.6 million. That number in itself came under scrutiny after it was discovered that Fairfax County tax estimates valued the property at only about half that price. It is now being leased for special day and evening events.
Needed renovations were budgeted to cost about $259,000; however, that number quickly ballooned to $655,000. The money was recouped by RA in the form of various employment restructuring, among other measures.
When it was estimated a full professional review of the overrun could cost into six figures, the locally based Mediaworld came into the picture. However, Mediaworld and RA could not agree on many of the particulars of the arrangement, culminating in this week’s official falling-out.
Late Tuesday afternoon, a statement to Reston Now from RA Board of Directors President Ellen Graves expressed the board’s disappointment in Mediaworld’s “unilateral decision to terminate its proposal.”
“RA was and continues to be willing to work with Mediaworld in good faith toward a mutually acceptable agreement,” Graves said. “In fact, the association’s legal counsel offered repeatedly during the course of negotiations to sit down in person with representatives of Mediaworld in an attempt to resolve the details of the remaining open issues.”
Graves said that Mediaworld “apparently could not find the time to meet to resolve the remaining issues, including many standard terms found in community association contracts designed for an association’s protection and which are generally accepted by most companies performing similar services for community associations.”
In the statement, Graves said the board “remains undeterred in its efforts to have this important project completed,” adding that a meeting would take place later this month to determine the best course of action moving forward.
The Lake House — formerly Tetra — has been hit with financial difficulties since it was purchased for $2.6 million — about twice its assessed value — in 2015. RA showed a cost overrun of $430,000 last spring, due in part to a six-figure expected rentback from former owner/tenant Tetra that did not happen.
Exterior renovations to turn the building from offices to a community use building for afterschool care, meetings and events, also cost way more than anticipated.
RA CEO Cate Fulkerson will outline the Lake House financial outlook at tonight’s regular RA Board meeting. The board is also expected to pick an outside firm to conduct an independent audit of the Lake House cost overrun.
According to RA documents and Reston 2020’s analysis, RA will spend in 2016:
- $700,000 on renovation of the interior and exterior of the Tetra building.
- More than $107,000 on operating expenses, some $95,000 comprises employee-related expenses.
- Mortgage payments that will total nearly $184,000 this year.
RA numbers show it is now bringing in money as afterschool care began this month and it is booked for many events.
Total revenues were $3,677 in August, but are expected to jump to $31,000 this month and grow each month, according to RA’s spreadsheet.
But Reston 2020 compares the numbers with the original estimates in RA’s 2015 Tetra purchase fact sheet to show the ground it must make up, including:
- 2015 estimate that operating expenses would be $45,011 in 2016. RA’s latest report puts operating expenses at $107,303–more than double RA’s “fact sheet” projection.
- No program expenses because RA anticipated that the building would be leased back to Tetra developers through 2016. Now RA anticipates $107,303 in operating/programming expenses for this year.
- 2016 overhead expenses, including “existence cost” expenses and loan costs, were expected to reach $228,623 in the fact sheet. They are now projected to grow slightly to $247,072 this year.
Read more on Reston 2020’s blog.
A committee of citizens and RA Board members voted 4-3 last week to choose Mediaworld, a Reston-based company that will use Reston Association members to conduct the review. The price is right: Mediaworld is charging RA just $1 for the investigation.
After renovations at Lake House (formerly the Tetra Building) were found to be nearly triple what RA initially estimated, RA moved $430,000 from its operating budget to cover the deficit.
The money has since been replaced, says RA CEO Cate Fulkerson.
However, RA organized a panel to choose a professional firm to “review of the processes and internal controls that were followed across the organization in handling all decision-making, governance, administrative and financial aspects of the Association’s purchase, including the referendum, planned use, and renovation of Tetra (now known as the Lake House property), that have led to cost overruns and revenue shortfalls.” (more…)
RA is holding two open houses this weekend to show off the renovations of the 33-year-old former Reston Visitors Center.
After a member referendum in the spring of 2015, RA purchased the 3,128-sqaure-foot building on the shores of Lake Newport for $2.6 million. It then spent more than $600,000, which was about $430,000 more than budgeted, for the renovations and to turn the building from an office space, which it was for the last 13 years, into a community use building.
RA has since replaced the money for the overrun in its operating fund, and is about to hire an independent consultant to audit the overrun to see how it occurred.
Meanwhile, RA is actively marketing the space and eager to start earning income from it.
Here is what is happening this weekend:
Saturday, Sept. 17, from 12-4 p.m. — On Saturday, hors d’oeuvres and light refreshments will be provided by Cafesano. The facility will be set up by Let’s Party! so that visitors can envision a baby shower or wedding reception. Flowers will be provided by Joy & Co.
Sunday, Sept. 18, from 10 a.m.-12 p.m. — The Lake House open house will focus on promoting RA’s programming. The facility will showcase RA’s new Fit Kids After-School program and other wellness classes. Morning brunch will be made available by Extravagant Affairs.
Special open house offers will include waiving the regular food and beverage fee (a $125 savings) to anyone reserving an event date within one week of the open house.
Door prizes include: Complimentary “drop-in day” to RA’s Fit Kids After-School program and a complimentary session to a RA wellness class.
Contact Member Services at [email protected] or 703-435-6530 for more information about The Lake House.
In the next week or so, a Reston Association committee will select a consultant to review and evaluate the purchase and overrun expenses related to the Tetra office property, now known as the Lake House. The consultant will review, analyze and make recommendations to the Board on processes to prevent the recurrence of such a fiasco.
One of the steps in the consultant’s review will be to wade through the public record. The record is extensive and includes documents on the RA and Fairfax County websites as well articles in Reston Now and the Connection.
As the record shows, RA made numerous mistakes over the course of about two years. It is useful to enumerate those mistakes to remind everyone what a dismal job RA did in purchasing and managing the Tetra renovation. It might also provide some guidance to RA’s independent review consultant.
Let’s start with the $2.6 million price paid for the property. In reality, paid for two properties; one real and the other hypothetical. The real was the building as an office. That cost $1.3 million. The hypothetical, a restaurant, would cost an additional $1.35 million. The prices were based on a January 2015 appraisal for the property. RA requested that the appraiser include the restaurant. (more…)
Reston Association’s Lake House is now fully renovated and open for business.
RA is promoting the facility in a “Reston Today” YouTube video as a lakefront retreat available for meetings, corporate outings, weddings and other gatherings. Rates start at $100 an hour.
The Lake House has already been booked for a number of special events in upcoming months, and will be used for after-school care weekdays this fall, RA officials say.
But the Lake House, formerly known as the Tetra Building, is still the subject of an internal investigation. RA will hold a special Board of Directors meeting on Aug. 23 (6:30 p.m. at RA headquarters) to appoint an independent firm to conduct a review of the Tetra/Lake House Referendum and Budgets and receive information on and the first draft of RA’s 2017 Operating and Capital Budgets.
The RA Board passed a motion several months ago to convene a citizens group to hire an independent auditing firm to get to the bottom of a $430,000 cost overrun on Lake House renovations.
It is still unknown what the auditing firm’s costs will be.
RA purchased the Lake House for $2.65 million in July 2015. The 33-year-old building on the shores of Lake Newport, which served as the Reston Visitors Center for about 20 years, added to RA’s contiguous open space and fended off the chance of commercial development.
But as renovations got underway, costs soon began mounting. RA’s Board of Directors voted in late May to move $430,000 from its operating fund to cover the Lake House overrun.
RA CEO Cate Fulkerson has found several budget variances and cost-savings measures to cover the $430,000, Reston Now has previously reported.
Reston Association (RA) is in the midst of soliciting proposals to conduct what it calls an “independent” review of its handling of the Tetra (Lake House) purchase and renovation overrun, a process that promises more of the same poor processes and politicized results Restonians have seen for 18 months.
Most importantly, there’s the matter of RA characterizing this review as “independent.” It is anything but that.
To be truly “independent,” the RA Board needs to step away completely from this process. Let the three community members named to the selection committee set the criteria for the review, let them then make the actual selection of the review firm and have them receive and approve the final report.
Further, and equally important, the RA staff should have no participation in the review other than to answer questions, provide information (including internal e-mails and discussion notes), and explain processes. (more…)