Tuesday, August 31, 2010

Common Sense Coto de Caza Budget

Posted By CotoBlogzz 08-31-2010

FISH-BHO-Nomics do not work, FISH-COTO-Nomics don’t work

It is that time again – it is your friendly association’s budget time – this is the time when service providers such as Keystone Pacific and or landscapers determine how much more you have to pay for lousy service and your board of directors comes up with fish stories telling you to be thankful you are not paying that much more.

For reference, FISH-BHO-Nomics represents the current US administration’s  economic policies as well as the Fish stories used to explain them away – the policies have not worked, and the stories as just that:  Fish stories.

Likewise, FISH-COTO-Nomics represent the Coto de Caza economic policies and corresponding fish stories.  For example, Xochitl Yocham tries to explain that it is OK for the CZ Master association to subsidize the Estates, the Villages, the Stables and the Golf Club “because they are good neighbors, not unlike Dove Canyon or Rancho Santa Margarita residents

The CZ  gate access is analogous to the US federal government’s efforts to secure the US border – suing Arizona for trying to do the work the feds are supposed to do.  In Coto's case, the board uses legal resources to silence critics.

Let’s be clear:  The CZ board has shown a pervasive predilection for taking action to benefit a small minority within the community – specifically the real estate industry.  Any budget that suggests  that dues should increase and or remain the same, should be viewed like FISH-BHO-Nomics:  Merely a way to subsidize freeloaders.

First, consider the number of foreclosures in the community over the last three years to now.

Now consider the total disregard for any semblance of supplier management – keep in mind that domain expert  and former member of the CZ board of directors Joseph Morabito has volunteered to establish a credible, reliable and transparent supplier management process – not a beep  from the CZ board:

How do you know current suppliers are doing their job?  For reference, in the past the unacceptable response from Keystone on behalf of the CZ board is “  If the board renews their contract, that means the suppliers are doing an acceptable job.”  Or what about answering the following:  When was the last time you had three bids for the Triple Constraint:  property management, legal counsel and security?

What about answering the question:  What is the real purpose of the close to  “2.0  million /year “security-but-no-security” budget?  What is the real purpose of the gates?  To keep residents out while making it easy for freeloaders and suppliers to come in?  Pass holders, valid or not, rarely  go through any manned gate – instead they hold up traffic, flash a card (valid or not) and they are let in, for example.

Answering the aforementioned question is more than just academic – it is important for liability reasons as exemplified by the Donald Tilley, a security guard employed by BonaFide Security Services, Inc., suing  the CZ Master Association, because of injuries he suffered from an assault while responding to a complaint about a youth party on CZ's premises, and subsequent CZ board actions, including directly hiring an executive director because of Keystone’s incompetence, according to Robert Varo.  Now enters Arizona case law: Martinez v. Woodmar IV Condominiums Homeowners Ass’n, Inc., 189 Ariz. 206, 941 P.2d 218 (Ariz. 1997).

Or what about asking the following question:  How much do CZ residents have to pay to use facilities owned by  The Stables, The Golf Club, The Racquet Club?  Now turn in it around and ask:  how much do   the Stables, The Golf Club and  The Racquet Club pay the CZ Master association for the wear and tear of the common property?  Get the picture?  The picture, just like in FISH-BHO-nomics is distribution of wealth.

Under the current economic conditions, a sensible approach to the CZ budget is to implement a Joe Morabito-type of supplier management and  to keep only one manned gate.   Multiple-day pass users should pay a substantial fee and should all go through the manned gate for verification purposes.  Users of the high maintenance common areas such as the Sports Park, the horse trails, the new Yocham/Varo dog park , including the Racquet club and the Gold Club, should reimburse the CZ residents for the close to $4 million/per year subsides.

CZ wastes money because there is no credible supplier management process in place.  The property management company, no matter who it is, cannot be trusted to do this.   I saw that first hand while serving on the Board.   It is not one of their competencies.  They are not tough enough when it comes to going out to bid or negotiations.  There should be a permanent Committee of residents in place to handle supplier selection and management, which would include regularly going out to bid for major services using procurement department procedures.  That was not happening before I served on the Board, did happen while I was on the board for the first time because of my work experience (we do this for a living) and probably is not happening today because it is very labor intensive.  It cannot be done as part of a regular Board function.  It is what it is.   Joseph Morabito

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