Rising fire insurance rates, escalating OVA dues, and increasing energy costs leave us wondering how we can take action to positively impact our personal and our community’s future.

Oakmont Village is renowned for its close-knit neighborhoods and robust mutual support network, which play a crucial role in fostering a sense of community and resilience among residents. As Oakmont residents face economic pressures this resilience is important.

Initiatives like the “Meet Your Neighbors” program also encourage residents to connect and build relationships that increase safety throughout the community. The community’s dedication to health and well-being is evident in the frequent immunization clinics, ensuring many residents have access to an essential service.

OVA FireWise initiatives and educational opportunities have provided much needed guidance to residents related to home hardening and fire prevention.

Additionally, a diverse array of committees, clubs, sport groups, arts, interest groups, guest speakers, classes, concerts and service activities provide ample opportunities for residents to engage, contribute, and support one another. This diversity of opportunity is both within and outside of Oakmont. A strong foundation of interconnectedness not only enhances the quality of life but also fortifies Oakmont Village against the economic pressures its residents may face.

Rising Fire Insurance Rates

California has seen a dramatic increase in fire insurance rates and a significant trend of homeowners insurance cancellations, driven largely by the heightened risk of wildfires in the region. Insurers, facing substantial losses from recent devastating fires, have responded by raising premiums significantly and reassessing their risk portfolios. This has led to many insurance companies, including major providers like State Farm, opting not to renew policies in high-risk areas rather than continue to underwrite properties susceptible to fire damage. In March, the OVA hosted a well attended town hall on home fire insurance and current trends in the industry.

In Oakmont’s 95409 zip code, the impact of these changes has been particularly pronounced. State Farm, for instance, has stopped renewing fire insurance policies for numerous homeowners, citing the elevated fire risk due to the community’s location within or adjacent to the Wild-land-Urban Interface (WUI). This trend has left many residents scrambling to find new coverage, often at much higher rates, or facing the possibility of needing to access the insurance of last resort called the California Fair Plan.

Escalating OVA Dues

Analysis of current and historical OVA dues: what does the data show and what are the trends?

From 2003 to 2024, OVA dues have increased by 358.7%, making them over four and a half times higher in 2024 than in 2003. In contrast, the California cost of living rose by 78.8% over the same period, indicating that OVA dues increased at a rate four and a half times faster than general inflation. Regardless of the causes, the net result of 21 years of dues increases is that the dues cost for a couple living in Oakmont is now $250 per month for owner-maintained properties. For those living in sub-HOAs, dues range from around $500 to $600 per month. This significant increase underscores the financial burden that has grown over time, impacting residents’ monthly budgets substantially. The 2024 dues increase was 11% and no building projects occurred.

Master Plan Concept Cost Estimates

Context

The OVA “2030 Project” was authorized without an independent financial audit and plan in place. The project was based on community conversations and visionary ideas rather than concrete financial studies.

Master Plan Concept Cost Estimates

With the Oakmont Village Association (OVA) 2024 budget
net operating expense and fund transfers (derived from owners’ assessments) of $7,020,720 the feasibility of funding tens of millions of dollars in future building projects is a pressing concern. The community is currently awaiting cost estimates from ArchiLOGIX, the architectural consulting firm that provided the Master Plan Site Concepts to the board and membership in late June.

There is a potential for significant future increases in membership dues if substantial ArchiLOGIX master plan concepts are adopted and funded by the Board. Under current governing documents, the OVA can raise dues up to 20% per year without a membership vote, which could lead to considerable financial strain on residents, particularly those on fixed incomes. In the past, commercial loans for building projects have been funded by assessments and dues increases, and this trend might continue if large-scale projects are pursued.

How did we get where we are, related to the Community Conversations Model?

The “2030 Project” used the American Institute of Architects (AIA) architectural participatory approach to community development projects, emphasizing the importance of engaging the community through conversations rather than relying on questionnaire surveys. The AIA’s “Communities by Design” program, for example, focuses on public participation through community tours, public workshops, and design studios, which allow for collaborative idea generation and decision-making tailored to the local context. The 2030 steering committee hired a consultant for over $70,000 to facilitate the conversational method. They also hired architect Mitch Conner to help “synthesize” the conversations into 14 projects. The last board of directors then authorized a “time and materials contract” with the same architect to develop three master plan concepts for the Central Area Concept. User groups presented ideas and comments to this architectural firm for guidance development within the master plan concepts.

By understanding these dynamics and participating in community discussions, Oakmont residents can better navigate the economic pressures and contribute to sustainable development plans that reflect the community’s needs and resources.

PG&E bills are much higher than expected. Why?

PG&E Rate Increases are of concern related to financial impact on residents and OVA properties. Over the past five years, PG&E customers in Northern California have seen significant increases in their energy bills. From 2019 to 2023, PG&E implemented multiple rate hikes due to various factors including the costs of upgrading safety equipment, maintaining aging infrastructure, and paying for damages from wildfires. For instance, in 2023 alone, PG&E rates increased by up to 32%, partly to recover costs from wildfire safety work and storm damage recovery.

Some Good News!

Despite these documented economic pressures homes in Oakmont Village are maintaining their values and selling well in a year over year analysis. This may be an indication that Oakmont Village is a well-established community in a prime area in the Valley of the Moon. Oakmont showcases well maintained triplexes, condos, duets and single-family homes currently catering to an economically diverse over 55-year-old population. Common areas and amenities are currently well maintained by the OVA.

Call to Action: What Can We Do?

Plan to regularly attend OVA Board of Director meetings

These meetings, and the OVA Board meeting packets that are published a few days prior to each meeting, are crucial for understanding the decisions that affect the community. Each meeting packet includes minutes of the previous month’s meeting, a summary of the current state of OVA’s finances, and many details about decisions that are to be made at the upcoming meeting. If you are unable to attend in person, use the zoom link, email askOVA@oakmontvillage.com with questions for Open Forum. You can also “raise your hand” on zoom with a question. The next meeting is scheduled for August 20, 2024, at 1:00 PM in the Berger Auditorium.

Review the Financial Documents

Keep up to date with the OVA’s financial statements and reports.. Understanding where funds are allocated and how dues are spent can provide insights into the financial health of our association. We will be presented with a new 2025 budget by the new treasurer very soon. Ask questions of your treasurer and board directors as to the operating budget and reserve accounts. If dues are raised ask why.

Last year dues were raised by 11% (with no building projects) then a few months later the former Treasurer requested an unscheduled $300,000 principal payment from the reserve account to pay down the principal on the Golf Course loan. The last board approved the payment. Will action plans like this continue?

Engage with Local Governance

Submit questions to AskOVA@oakmontvillage.com or address the Board directly during open forums and meetings. Review the posted OVA board agenda and packets. With this information there is then an opportunity to voice concerns and seek clarification on issues. Email board members with any questions. You can also review past meeting videos. Remember, our directors are volunteering their time and expertise on behalf of membership.

Advocate for Transparency and Accountability

Advocate for independent financial auditing of the OVA prior to any major building projects being approved and funded. An audit would have ensured transparency and accountability, for projects like “2030” before hundreds of thousands of dollars were spent on blue sky ideas and architectural plans. We bear the costs of this endeavor now. Future financial planning may provide a clearer picture of the community’s financial standing and highlight areas for improvement.

Consider joining a grassroots community advocacy organization to continue working for a positive and inclusive future for Oakmont. When we join our voices together we are heard by those in decision-making power in the OVA.

Monitor Developments

Stay updated on the progress and cost estimates of projects proposed by ArchiLOGIX. Ensure that any new initiatives are financially feasible and beneficial for the community. Refer to regular updates posted by the OVA. Complete the Google Form Questionnaire regarding the Master Plan Concepts by 7/26/2024. Remember, you do not have to pick a master plan on this questionnaire. Google Doc Forms provide built-in analytics to help the OVA collect and analyze responses accurately and efficiently. OVA members should expect the following from the OVA at a minimum:

• Visual summaries of your responses, such as pie charts and bar graphs.
• Detailed insights on each individual response. Raw data included.
• Option to export data to Google Sheets for more detailed analysis. For example, what were the sentiments expressed for each of the plans? Positive, negative or neutral.

Support Energy Efficiency Initiatives

Consider investing in energy-efficient appliances and renewable energy sources, such as solar panels, battery storage and heat pumps. These investments can reduce dependence on PG&E and lower energy bills in the long run. There is currently a federal tax credit of 30% on many of these energy investments. Those that have medical devises with PGE Medical Baseline Coverage may qualify for a significant grant for battery purchase and installation through the SGIP program.

Strengthen Community Connections

Engage in local events and initiatives that are regularly posted on the OVA website. Volunteer in our Sonoma County area. Offer your time and skills to local clubs, public service activities, family and friends. Offer homebound neighbors and those that do not access the internet educational information about current issues facing Oakmont.

Conclusion

By staying informed, engaged, and proactive, Oakmont Village residents can collectively navigate and mitigate the economic challenges we face. Together, the community can ensure a stable and resilient future.