Profiles in Coto de Caza Board of Directors Budgeting Process!

Profiles in Coto de Caza Board of Directors Budgeting Process!

October 28, 2006

Former member of the Coto de Caza board of directors Joseph Morabito has argued vehemently against a monthly dues increase for months, especially after the Varo/Mezger board of directors have squandered the association money every which way, including accepting "free" trees that ended up costing more than $45,000.00.

Additionally, the current board has continued subsidizing "exquisite manors" at the Estates at the tune of over $1,500,000.00 per year, while at the same time, the Estates looks at the feasibility of building a gate-within-a-gate to keep association residents funding such subsidy out. Then there is the "free" online registration application that in theory is supposed to be "central" to the private security plan, and funded by commercializing the CZ association - something long-time residents and previous boards have refused to do. To add insult to injury, this "free" service is costing the association over $150,000.00/year to maintain, not to mention that it is also used as a vehicle to promote a director's spouses' business.

This discussion does not even address the institutionalized welfare system, better addressed by Mr. Morabito himself:

Hello All: In the next few weeks the Varo/Mezger CZ Board will announce the 2007 dues increase. Rather than look for other ways to legitimately generate revenues or installing the very same procurement processes implemented by all major companies to reduce expenses, the Varo/Mezger CZ Board will again raise dues the same as occurred in 2005 just two years ago. The pending 2007 dues increase like the one in 2005 is the result of blatant fiscal mismanagement and nothing else. The current CZ Board is lazy and incompetent and it is going to cost us all money.



Best of all, Vinnie Davis our new Executive Director also made the case for a dues increase in her newsletter this month. Let’s face it; Vinnie stands to benefit from higher dues because it means more income for her and less work. In fact, property management professionals and companies are part of the problem not the solution. While I like all of the people I worked with at Keystone and Merit, they are not tough minded business people. They are go along to get along types who work to advance the entire property management industry which includes all the other support suppliers. The people I worked with at both Keystone and Merit while serving on the CZ Board did not have solid procurement experience. From what I saw of CJ Klug he was just more of the same. They do not know how to buy goods and services. And, to be frank they are not going to push hard for lower fees and charges from support suppliers because they all know each other and are all part of the same industry. This is the reason we went outside the industry for an attorney to develop generic contracts for CZ which have probably been abandoned by the Varo/Mezger CZ Board. In addition, people who work in the HOA property management industry are administrator’s not strong business men and women.

Only the CZ Board can manage the business of CZ. If CZ Board Members don’t make sure that expenses are controlled through proper procurement processes, it will not happen. Hence, the reason for both the 2005 and pending 2007 Varo/Mezger CZ Board dues increases. No one is minding the store. It is just that simple. Joe Morabito

P.S. Pending lawsuits exposing our Members to liability are the next shoe to drop. Hold on to your wallets because it could get ugly.

Zipperman (who argues for a dues increase on behalf of the Varo/Mezger board of directors)) erroneously believes that because Coto is an upscale community and CZ Members have “high expectations” that the only way to meet those expectations is through another dues increase. Of course, perish the thought that Varo/Mezger CZ Board Members should meet our expectations by working smarter to generate revenues that legitimately belong to our Members and cutting expenses through competitive bidding. Zipperman must believe that CZ Members made our money by being stupid. Go figure. Let’s face it. The Varo/Mezger CZ Board is just too damn lazy and incompetent to do the heavy lifting and make the tough decisions necessary to avoid a dues increase in 2007. I have provided very specific suggestions that would absolutely prevent a dues increase without cutting monies going into core Association functions including more money for landscaping replacement and the CHP. Varo/Mezger CZ Board Members are tax and spend liberals and very poor managers who do not understand the concept of fiduciary responsibility. It really is that simple. We are seeing what will happen if the Democrats gain control of Congress. What is happening in CZ is just a preview of the show in Washington DC that will occur if Nancy Pelosi, that San Francisco left wing Democrat becomes the Speaker of the House and that crook Harry Reid from Nevada becomes the leader of the Senate. Joe Morabito

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