LWV Open Board Meetings Memo

LWV Open Board Meetings Memo



August 5, 2008



We received a follow up letter, posted below, to a GRF resolution outlining rules of engagement for open board meetings (click here for copy) scheduled for approval today. We asked Ms. Donie Vantizian, co-author of the long-standing Los Angeles Times column "Associations" to comment on the merits of such letter, and have included her response under Comments below.



Subject: OPEN BOARD MEETING RULES

Assembly Bill 512, introduced by Assembly Member Bates became effective January 1st, 2004.

At that time, Assembly Member Pat Bates issued the following announcement:

"I am pleased to announce that I am authoring AB 512, a bill requiring community associations to follow fair and reasonable procedures when adopting operating rules and reviewing homeowner requests.

We’ve all heard horror stories about homeowner associations that abuse their authority. My bill takes dead aim only at these tyrannical associations, not the ones that already respect the rights of homeowners.

AB 512 would implement proposals by the California Law Revision Commission requiring that an association’s board of directors act in good faith and provide members with advance notice and an opportunity to comment before adopting or changing an operating rule. In addition, AB 512 would allow members of an association to reverse a rule change in the first 30 days after it is announced.

By ensuring fair and reasonable rulemaking, AB 512 will reduce the excessive number of disputes and lawsuits currently arising between homeowners and associations. As a result, it will reduce reliance on our overworked courts, saving money for all involved -- including the taxpayer.

It appears from the videos and written material circulating in the public domain, that in the past four and one-half years, Pacific Property Management (PCM) and the Mutual Boards have adopted resolutions completely ignoring the provisions of the Davis Stirling Act.

Simply put, the Davis Stirling Act states that the Resolution shall be in writing and mailed by first class mail at least 30 days in advance to all owners before takes its first official action leading to adoption of the rule.

The board's decision on such proposed rule changes must be made at a board meeting after consideration of any comments by association members. As far as the Davis Stirling Act is concerned, the following recommendation by Staff is not valid.

" Staff recommends that a motion be made and seconded to accept the resolution and allow discussion to ensure that the resolution reads to the satisfaction of the Board. Staff then recommends that a Board Member table the resolution to the next available Board Meeting no less than 30-days from the tablement to comply with Civil Code 1357.130”

Note: there is nothing is Civil Code 1357.130 that requires the adopted resolution to be tabled for 30 days. This is a mere figment of PCM's Staff's imagination. They should know that you can not table a motion and then ask for comments until the motion is removed from the table. But that comment is besides the question. The main question is whether PCM and the GRF Board of Directors are misleading the Community. I say they are:

1. The Resolution was not mailed to the 12, 736 members!

1350.7.

A document shall be delivered by one or more of the following methods: First-class mail, postage prepaid, addressed to a member at the address last shown on the books of the association or otherwise provided by the member.

2. The rule was not in writing. In fact, the only members who were aware of the existence of the rule were those in attendance in the board room. Mr. Ridgway has also indicated in the local paper that only about 22 % of the community watch the Board meetings

1357.110.

An operating rule is valid and enforceable only if all of the following requirements are satisfied:

The rule is in writing and in the possession of all 12,736 members

3. This resolution was voted on and approved without written notice to the members of the community.

1357.130.

(a) The board of directors shall provide written notice of a proposed rule change to the members at least 30 days before making the rule change.

1357.150. (a)

This article applies to a rule change commenced on or after January 1, 2004.

For the purposes of this section, a rule change is commenced when the board of directors of the association takes its first official action leading to adoption of the rule change.

The fact is -- that the initial notice would have to be sent to the members at least 30 days before it is placed on the meeting agenda.

Civ. Code § 1357.130 (added). Rulemaking procedure Comment. Section 1357.130 provides the procedure to be followed when making a rule change.

Failure to provide notice to every member will not invalidate a rule change if the failure is minor and inadvertent.

Finally,

This is not a case where the failure to notify was in good faith "minor and/or inadvertent."
They know exactly what they doing!!!


Joe Fischler



COMMENTS



Ms. Donie Vantizian's, (co-author of the long-standing Los Angeles Times column "Associations") reaction to Mr. Fischler's letter:
"Board directors appear by presumption to be 'rational and reasonable' human beings for no other reason than they were supposedly 'elected' by a majority of titleholders in a 'fair election' and are therefore placed in positions of trust and great--nearly unlimited--power.

That presumption is based on the indemnification insurance for homeowner association boards of directors and its nearly ipso facto defense fund provided for errant directors. I do not believe in that so-called presumption-by-default mantra of 'rational and reasonable' as it applies to board directors because time and again it appears to be proven wrong on many fronts. With nothing more, it presumes an election was fair and makes such elections prima facie with little effort. That is why I termed the latest fiasco taking place in Leisure World Laguna Woods the "SHUT-UP RULE." In Leisure World-type projects everywhere, but especially here in California, because it is a predominately retirement development, it is plausible that the majority of these so-called 'rational and reasonable' human beings are bringing good will and good faith along with some sort of past work experience with them. However, what appears to be a blatant abuse of laws by those in control against those who are not in control, is a grotesque disappointment.

As we noted in 'Villa Appalling! Destroying the Myth of Affordable Community Living,' the abuse of laws meant to protect are a big concern of titleholders who are forced now to live under a regime of 'rulers' and be treated as serfs rather than the bona fide homeowners that they are. It is EASIER for boards to be law abiding than not."



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LWV Open Board Meetings Memo
We received a follow up letter, posted below, to a GRF resolution outlining rules of engagement for open board meetings (click here for copy) scheduled for approved today. We asked Ms. Donie Vantizian, co-author of the long-standing Los Angeles Times column "Associations" to comment on the merits of such letter, and have included her response under Comments below

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COMMENTS



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