Let me start out by saying the recent election results have sent a clear message to the POA board and Mr. Pilsbury that we are not happy with their decisions, management and direction Tellico Village is going and a change MUST happen. Unofficially, approximately 50% (3500 owners) of total property owners (about 6800 owners) voted, a record turnout. Of those 50% (3500 owners), Mr. Reed and Lackey garnered over 70% of the votes (2500). That’s called a MANDATE and great news for the village. But our work only now begins.

As you know, Voice of Tellico is a not-for-profit corporation formed to fund a legal opinion on whether or not the board can use a FEE structure to fund the TAP, Water Sewer Asset Infrastructure Fee (WSAIF), instead of a Special Assessment structure. Secondarily, it was formed to provide a communication tool with you (the Village). More on that a little later. A letter of intent for legal action was delivered to the POA board, the CEO and legal counsel on Nov 12,requesting a response by Nov. 24.

1) The "plain and ordinary meaning" of our Covenants was violated. Our POA has interpreted "Charges for Services" to mean it can implement a "fee" to pay for water and sewer projects even when the provision of water and sewer is not contemplated (e.g. for lot holders). In short, this creative interpretation, which comes after nearly 40 years of governance, is in direct violation of our "protective covenants" which were specifically designed to prevent our POA from this very form of abuse.

A reference in the same section of the Declaration states that water and sewer costs are to be paid from our annual assessments. This is now being violated. Furthermore, in the same section of our document "personal charges" are referenced, which are variable to each individual owner (similar to the water rates we are charged individually). There is no allowance to use a "global" fee that is not use or condition specific.

2) The board, by virtue of a vote, created a new "assessment" that the Declaration prohibits. This new assessment, unlike the annual assessment specified in our document, has no annual "protective" cap and can be adjusted by the simple vote of the board.

3) The board circumvented our Covenants, which say the Village needs to vote on any "special assessment" levied against its members. This new "assessment" is not an annual assessment and can only be construed as a special assessment. Additionally, it cannot be enacted as a "multi-year" fee, a further violation of the clear meaning of the covenant language.

Our lawyer has determined that these actions may be determined, by a court of law, to be a breach of the board's fiduciary duties. Specifically, NOT acting in good faith, with honesty and responsibility to the owner members (the residents).

As of this date, we have not heard from the Board or their attorney requesting to rescind the WSAIF fee.

As a result of electing (overwhelmingly) 2 new POA board members, both who campaigned on an alternative solution to TAP, the ending of the $80 fee as well as governance and organizational issues, our strategy must be revisited. Rather than moving forward with filing a complaint, we will be seeking a meeting to discuss ALL the above with the board in order to avoid litigation over this matter. Therefore, we will not be seeking further contributions for legal expenses, at this time. You can help in this effort by sending an email or text to board members, asking that they support a meeting with our team.

This election demonstrated that we need an alternative communication vehicle to the Telegram. The POA board and Mr. Pilsbury showed no hesitation using the Telegram as an election propaganda communication (i.e. my rebuttal email to a Telegram communication). This same behavior and agenda pushing, was seen in the Water Authority project and Buy-In proposal. Both of which failed, because both required new state legislation. So as part of our strategy, we will be incurring a minor amount of administrative expense in setting up a broader means to communicate with the entire Village. We will use this tool to communicate and educate the village on governance issues still to be addressed and the progress that is still to come.

We welcome your input. If you have any questions or comments, feel free to respond to this communication.

Regards,

Mark Werner

Voice of Tellico - President