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by Jennifer van der Kleut December 8, 2016 at 2:45 pm 9 Comments

New Lake House(Updated at 3:40 p.m.) Members of the Reston Association Board of Directors held an executive session after a public meeting Wednesday night to continue contract discussions with MediaWorld, the firm it voted to put in charge of a review of the Tetra/Lake House’s budget overrun.

According to RA’s director of communications, Mike Leone, the board ended up taking no action at the meeting.

That means the matter continues as it has for roughly two-and-a-half months since the RA board voted 4-3 to task MediaWorld with the review.

The board has not yet announced any future meetings.

If you’re just catching up to speed with the issue, here’s a little background:

After renovations at Lake House (formerly the Tetra Building) were found to be nearly triple what was originally budgeted, a review of the handling of the funds was deemed necessary. Earlier this year, RA moved $430,000 from its operating budget to help cover the project’s deficit.

All of that came after many citizens said they feel the RA overpaid to purchase the building in the first place. Fairfax County tax estimates put its value at closer to $1.2 million.

Following completion of the project, the RA Board formed a panel consisting of residents and staff to audit the entire project’s books, though many citizens and staff members urged the board to hire an independent firm to ensure the process was completely impartial. An initial search found, however, that such a firm could cost in the six figures.

A compromise was found in MediaWorld, who agreed to do the review for just $1 if RA members could be used to perform some of the necessary work.

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by Jennifer van der Kleut December 6, 2016 at 12:00 pm 17 Comments

Lake House May 2016The Reston Association Board is scheduled to hold a special meeting Wednesday at 7:30 p.m. to discuss contract issues with MediaWorld, the firm it voted to put in charge of a review of the Tetra/Lake House’s budget overrun.

It has been more than two months since the Board voted 4-3 to go with MediaWorld for the budget review but the Board has yet to approve an official contract with the firm that would allow them to begin work.

After renovations at Lake House (formerly the Tetra Building) were found to be nearly triple what was originally budgeted, a review of the handling of the funds was deemed necessary. Earlier this year, RA moved $430,000 from its operating budget to help cover the project’s deficit.

All of that came after the RA took out a $2.7-million loan to purchase the building from its former occupants, Tetra Partners, which many citizens said they thought was too much to pay for the property in the first place. Fairfax County tax estimates put the building and land’s value at closer to $1.2 million.

In August, 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.”

Originally, citizens and RA staff members urged the Board to hire an independent firm to conduct the review in order for it to be completely impartial. But when it became obvious that the hiring of an outside firm could cost as much as six figures, the Board voted on a compromise — namely, going with MediaWorld but offering the help of RA members.

MediaWorld is a Reston-based company that offered to conduct the review for a fee of just $1 with the understanding that they could use RA members to help do some of the work.

In Wednesday’s special meeting, the RA Board said it will continue discussions over a potential contract with MediaWorld to spearhead the Tetra/Lake House review.

It is expected that the Board will go into executive session to conduct the contract negotiations–meaning it will be closed to the public due to attorney-client privilege, RA staff said.

The meeting could go a number of ways. The Board could come to an agreement with MediaWorld and vote to approve the contract, meaning work on the review could begin soon.

Or, if the two parties are unable to come to an agreement, the Board could decide not to continue negotiations with MediaWorld and decide to seek another company to work with.

At that point, they could go back to the list of firms that originally submitted proposals to the RA and decide to open negotiations with one of them. Or, the Board could decide to start a new search and allow other companies to submit proposals.

Wednesday’s meeting will begin at 7:30 p.m. at RA Headquarters, located at 12001 Sunrise Valley Drive.

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by Karen Goff May 27, 2016 at 9:15 am 51 Comments

 Lake House May 2016

The Reston Association Board of Directors voted on Thursday to move $430,000 from RA’s 2016 Operating Fund to cover the cost overrun from the Lake House project.

But before the vote, there were hours of discussion about how a nearly half-million dollar error occurred and what the organization can do to ensure such a mistake does not happen again.

RA purchased the building, formerly Reston’s Visitor Center, on the shores of Lake Newport for $2.6 million last summer. Acquiring the property would fend off commercial development and add to RA’s open and community space, RA said.

The purchase was narrowly approved by a member referendum, but there was lots of concern among community members that RA was overpaying for the building and its three acres of land, and that members would ultimately bear the burden — with higher annual assessments — of paying for the acquisition.

RA staff estimated that renovating the then 32-year-old building would cost $259,000. That number quickly jumped to $655,000.

“It was incredibly unfortunate the mistake that was made in the pro forma,” RA CEO Cate Fulkerson said at Thursday’s meeting. “I own that mistake, along with my staff. It was an error that should not have been made.”

Fulkerson outlined to the board some of the things that went wrong:

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