Saturday, June 30, 2012

The Laguna Woods Village $96K Sweepstakes

LETTER


This is a multi-part message. The First Part (see below)  is a response from Third Mutual President, Mike Straziuso who was  one of the four votes giving $96,000.00 to PCM for nothing more than good times and parties, addressed to the Pamela and Connie Grundke; their original message of Tuesday, June 26 entitled “Budget time is giveaway time.”  You will recall that those who voted FOR giving PCM $96,000.00 for lunches, gift cards and multitudes of goodies were Rae Tso  340-0687, Treasurer of Third, Patrick Murphy 472-0106, Treasurer of GRF, Erwin Levy, self-proclaimed patriot 581-1329, Towers and of course, the President of Third, Mike Straziuso 830-8717. Straziuoso, in his unerring attention to detail did not send his response to the Grundkes but sent it to his short list of admirers and it eventually made the rounds of the community.

The Second Part  is Connie Grundke’s answer to Straziuso’s obviously handed-down-from-on-high message received round-about. It is entitled “United Mutual Monthly Assessment” and came with a graph which is attached to this document.

One must wonder of the integrity of one who issues such a vitriolic response without copying the person to whom he is responding directly! Self-serving exclusively.


The Third Part  is again from Connie Grundke and has an addendum to his second part response.

The Fourth and Fifth Parts  are  e-mails concerning this very same thread with responses from Carol Moore and Kathryn Frhesley, two of the people apparently on the e-mail list who got Straziuso’s original response.

Stay tuned. It appears that the people who voted for the insane amount of money for PCM to just play with at the expense of the membership aren’t happy with being held accountable for their actions. Do you suppose they were told they would suffer no repercussions for just throwing our money around as though it were confetti and this country had emerged from the worst recession since the depression?
I have tried to put these messages in an order that makes sense. Sometimes when dealing with some of our board members these things are reminiscent of the saying, “the difficult will be delivered immediately, the impossible takes a little longer.”

K. McDaniel

######

Part One

From: "Mike Straziuso" <mikestraz@comline.com>
Date: June 28, 2012 10:03:05 PM PDT
To: 
Cc:  Subject: Re: SHAME ON YOU
An open letter to Pamela and Connie Grundke:

Employee “appreciation” gifts and events are a normal budget line item and occurrence at almost all companies. In light of our total budget, staff size and a limited number of ‘appreciation” opportunities, this amount is not unreasonable and it would not even qualify as a “material” expenditure from an audit standpoint.

For you to conflate current events with what occurred five years (in 2007) ago is both disingenuous and unworthy of someone who purports to understand the business underpinnings of our relationship with our managing agent. Not only do you refuse to accept the explanations, justifications and mitigation of the so-called “credit card” affair, you continue to provide emotion-based half-truths to your followers.

It is through frenetic communications such as this that you both mark your territory as a radical political activists with a suspect agenda. I am reminded of an old saying which I am fond of quoting: “weak case, shout like hell!” Which seems to be the modus operandi of you and your organization.

Therefore, why would we not conform to prudent standards and practices when it comes to personnel issues relating to employee appreciation.

My fiduciary duty is to my mutual and to the corporate members whom I willingly serve. Therefore I feel no shame in performing my duties in an honest, ethical and civil manner.

Personally Connie, given your long-term employment with a large employer such as IBM, whose formalized employee appreciation opportunities are almost legendary, I simply do not know how you can reach the conclusion that this nominal funding requires vilification and is worth discussing when there are other, more significant, issues that need to be discussed.

It appears that you may realize that this is a contractual, rather than a budget allocation issue.
1.   GRF entered into a management contract addendum with PCM in May, 2008 which was titled “Letter of Agreement” (signed by GRF board members)
2.   The agreement was for $90,000 per year to be paid to PCM over and above the management fee.
3.   The escalation clause has the annual amount currently at $96,000.
4.   The discretionary fund is to be used for staff support functions such as staff recognition events and service awards.
5.   It is a binding contract signed by GRF officers in 2008.
So while GRF must budget for this line item, and pass the proportionate costs along to the mutuals, it is a contractual rather than a budgetary item that should be addressed in the appropriate legal forum rather than budgetary meetings. This should help everyone understand the process better and get the issue behind us.

As always, I am available to discuss this matter face-to-face at a mutually convenient time.

Mike Straziuso

 ####

Part Two


From: Connie Grundke [mailto:cgrundke@dslextreme.com]
Sent: Friday, June 29, 2012 4:03 PM
To:  
Subject: United Mutual Monthly Assessment

 In Reference to Third Mutual President M. Straziuso's open letter to me and Pam (which he failed to copy us on and we eventually received from someone on his list), I'd first like to respond to his comment about the company I worked for, IBM. This company had a reputation as a family oriented, gracious business that went overboard in educating their employees and rewarding them for their efforts. Regardless of how they paid for their employees additional benefits, it came along with periodic episodes where the management team was asked to reduce their budgets by 10%, including labor costs. We responded because it was the best thing to do for the corporation. Show me a PCM cost reduction of this nature in the history of PCM's role as the Managing Agent! "There ain't one!"

Sometimes a picture is worth a thousand words. The attached file was created in August 2004 and used in a PowerPoint presentation to the United Mutual Board in September 2005. Few believed that the Total United monthly assessments could follow the curve that I projected and I was ostracized by many when I made this presentation.

Many current Directors cannot visualize where our assessments are spiraling to and have a closed mind in picturing our future costs. They feel that there is no urgency in controlling our budgets and just assume that we can manage our incomes as well as PCM can manage their expenses. It doesn't work that way. Without board control, PCM is a runaway freight train and unless the boards take immediate action, we  have the consequence of an ever increasing monthly assessment as projected on the attached chart.

The 2013 budget is actually increasing faster than the chart. The chart predicted a monthly assessment of Approximately $580 in 2013. Where is the actual assessment in 2012?    $654  Who  knows where 2013 will be.

The chart created in 2004 predicted that we would reach the $800 monthly assessment in 2020. If we use the current actual $654 in 2012, we predict that we will reach the $800 monthly assessment  in 2016.

The 2012 assessment is $100 higher than was projected in 2004 and is expected to increase at an even faster rate in 2013. Where are those directors who would not believe the chart in 2004? Probably still in denial in 2012 and joined by a new generation of Directors.

They assume that expenses of "ONLY" $96,000 a year are not of concern. If you don't start with them now,

WHERE DO YOU START CUTTING COSTS?

Connie Grundke
683-6923
_________________________________________________________
 ###


Yesterday I sent out an email with a chart showing the rate of assessment increase every month since 1989. The chart showed an annual Total Basic Assessment that was projecting an $800 monthly assessment by 2020. When I compared the 2012 actual assessment I mistakenly included the property tax in the 2012 comparison which inflated the rate of increase projecting a monthly assessment of $800 by 2016.

My correct analysis should show that we will still reach the $800 Total Basic Assessment a month in 2020.

However, if we include the property taxes, the $654 per manor per month that I used in my analysis, what I currently pay GRF monthly, we will be paying GRF $800 a month by the year 2016.

The critical measure in this analysis is the lack of impact we have had in reducing the monthly budget in the past, and the coming years. Being unsuccessful in controlling PCM costs is a measure of the board's inability to clearly define distinct perameters of strict accountability to our Managing Agent. This sounds like it is more a matter of Directors who WANT to control costs versus Directors who DO NOT WANT to get involved.

Thanks for your time and attention.

Connie Grundke

 ###

Part Four:  Carol Moore


From: " carol moore" <carolmoore1234@comline.com>
To: "Mike Straziuso" <mikestraz@comline.com>,        "Joe Fischler" <joefisch@fea.net>"Irwin Levy" <erwinlevy3@gmail.com>, "JERRY STORAGE" <jerry.storage@pcm-inc.org>, "Pat Murphy"<gempdm@comline.com>,
        "RAE TSO" <tsorae@yahoo.com>
Subject: Re: SHAME ON YOU
Date: Fri, 29 Jun 2012 18:29:04 -0700
X-Mailer: Microsoft Outlook Express 6.00.2900.5931
X-PCToolsMIME: Updated by PC Tools Mime Parser 1.0.0.4
X-SmarterMail-TotalSpamWeight: 0 (Authenticated)

Mike,
My responses to your opinions and position are in red. Also, rather than send two separate emails, I've copied  part of your latest email (you can share your own lengthier statement if you choose) and responded to your statement regarding the lawsuit which was settled favorably by Third Mutual. You may have your own opinions, but you may not have your own facts. We received money and the lawsuit not only cost us nothing, you know that the "extra" we received was of a material amount.


Employee “appreciation” gifts and events are a normal budget line item and occurrence at almost all companies. The $96,000 is not a "normal" budget line item. The $96,0000 was not even a line item, it was hidden in the budget. The directors of the mutuals learned of the "Gift" more than a year after the event. There was no discussion,  a letter was simply placed in Mutual director boxes stating the fait accompli.

In light of our total budget Our total budget should have no bearing on this subject, either the item is appropriate or it is not; birthday gifts and/or lunches are  not appropriate rewards to be paid to employees. Everyone has a birthday even we residents have them; recognition is for unique situations and a birthday hardly qualifies, staff size and a limited number of ‘appreciation” opportunities, this amount is not unreasonable ..  What is reasonble is not determined by one director or even a couple of directors; all the directors should have an opportunity to provide their voices on this issue. Once again the issue is in regard to that which is appropriate (see number 3) This is your opinion and may not be shared by all; others are allowed to have differing opinions and even the right to express those differing opinions. and it would not even qualify as a “material” expenditure from an audit standpoint .. Because an expenditure lies below the radar of an audit in regard to amount doesn't make it ethical and proper. Also, auditors determine the threshold of materiality; it may be that the $96,000 would not attract attention, but that is a totally different subject.

For you to conflate current events with what occurred five years (in 2007) ago is both disingenuous and unworthy of someone who purports to understand the business underpinnings of our relationship with our managing agent.The credit card affair is  not a separate issue as the $96,000 was given by the GRF board to PCM in response to the removal of those credit cards; they are not discrete events but are related. Revelation of the credit cards and their subsequent removal resulted in  replacement of the credit cards with a monetary contribution (see Letter from HKC  May 2008 documenting the GRF action) . This is an issue worthy of discussion because of the amount, but more importantly because of the fact that residents need to understand how their money is spent and which directors support expenditures of this nature.
 Not only do you refuse to accept the explanations, justifications and mitigation of the so-called “credit card” affair, you continue to provide emotion-based half-truths to your followers. It is through frenetic communications such as this that you both mark your territory as a radical political activists with a suspect agenda. I am reminded of an old saying which I am fond of quoting: “weak case, shout like hell!” Which seems to be the modus operandi of you and your organization. Please stay with the issue and refrain from personal attacks.
 Therefore, why would we not conform to prudent standards and practices when it comes to personnel issues relating to employee appreciation.My fiduciary duty is to my mutual Every director has fiduciary duties but it is to the corporation.We need to protect the operating revenue. We cannot spend more than we can afford, and more importantly we should not spend on unethical items.and to the corporate members whom I willingly serve. Therefore I feel no shame in performing my duties in an honest, ethical . Ethical means informing the community as to how their funds are spent in clearly delineated line-items. It does not mean hiding an item among compensation items or even in the management agreement. and civil manner for an understanding of conduct which does not meet the civility test, you might want to view the tapes of our board meetings,  your previous conduct when you spoke as a resident as well as your current conduct as chairperson toward other directors and residents who wish to make comments).........

  Following is from your last email:

I could not help but remember that it was under your leadership that a non-productive lawsuit was filed over a contractual dispute regarding such an incentive program. Instead of pursuing the matter as a simple contractual dispute involving questions of whether an incentive plan was authorized and whether the cost-savings were justified and correctly computed, you lead the effort to charge fraud and elder abuse. The result was that there was a great deal of wasted time, energy and money in an effort that produced exactly nothing: no findings of fact, no judicial conclusions and which left the issues unaddressed in a court of competent jurisdiction.
As to the lawsuit by Third Mutual, you are clearly aware that we settled, you know the amount,  you know  it cost us nothing. We recovered all our legal fees and you know the amount of money received was considerably more than the legal fees.  You know, we more than recovered our costs . We have yet to see any fees from the current attorney and it will soon be July, more than six months have passed with no invoices provided to the directors.

You predicted that we would spend millions of dollars and complained of the cost, then when we settled, you again complained that we accepted a settlement and did not take the case to trial. You cannot have it both ways. You are angry that we did indeed receive a sizeable amount and you are angry that you were proven wrong as to the cost and you were proven wrong as to the outcome.  The current issue is the $96,000 as well as the spiraling assessment. Selling prices of manors are not in line with the growing monthly costs. The value of many manors is not rising and in many instances is less than that of  several years ago. While the assessment is increasing considerably this year the only solution offered is to reduce by 60% our contribution to the Disaster Fund (wait until you hear of the meta-roof issue) .

 Our maintenance expenditures have risen dramatically the past few years, yet Third Mutual approved the M&C budget as given to us by PCM. Were PCM employees so poor at preparing their own budget or rather was considerable dry-rot later discovered?  We believe the dry-rot issue is very troubling and one which we cannot ignore.

Even if you choose to ignore or postpone resplacement of the the dry-rot material, sales of manors depend upon the manor passing inspection. The manor next to me required the replacement of the entire fascia. Additionally, re-stuccoing next to the fascia is required as well as primering and painting the fascia. Would you not perform the required work so that the inspection takes place and the manor is sold? Failure to understand the process plays an important role in the problems with our growing M&C issues.

I too would like to discuss this issue of the $96,000, but directors have to be allowed to speak, they cannot be cut off simply because there may not be agreement with their statements.
Consider an open discussion of the issue of whether a yearly gift of $100 for every employee is appropriate; this is not a question relating to all the raises and benefit packages which we have provided for each and every of the more than past 15 years (and which compounded each year). The discussion relates to the propriety of  the ADDITIONAL $96,000 which was never listed as a line-item.


Carol


####

Part Five  Kathryn Freshley



Sent: Saturday, June 30, 2012 10:12 AM
Subject: Re: SHAME ON YOU

Mike,

Although I may be late to the party, you raise some issues that I cannot let go without comment.

Employee "appreciation gifts" are not a normal budgeted item.  I worked for a Fortune 5 company, we did not hold special parties or give gifts to employees unless they were earned by performing a special action or achieving exceptional performance. We did not spend company funds for employee welfare or parties. Any party was funded by the associates of the individual being treated.  This was also done on personal time and not company time.  

In my consulting with smaller, privately held firms, these firms occasionally provided special parties and gifts for their employees.  The decision was made by the owner who was spending his funds.  In our situation, any funds spent for "appreciation gifts" come from resident assessments.  Our fiduciary duty does not allow us to be gratuitous with resident funds, particularly when those funds are not a separate line item in the budget  These funds have been lumped into compensation, therefore hidden from our residents. This is unacceptable and inappropriate.  I know at the meeting, Lloyd Foster indicated that a separate line item was going to be included in the GRF budget, so at least residents will be aware of the "employee party/gift" funds being authorized by the GRF Business Planing Committee of which you and Rae are our representatives. 

The Third Mutual Board does not have a vote on this issue.  We have to accept the compensation and benefit increases the two of you with the United Board members, the Tower's representative and the three GRF representatives approve.  When you vote to approve compensation increases in this current economy, for many in the community, your action is not their best interests, only the interests of PCM employees.  Therefore,  "SHAME ON YOU" is an appropriate response. 

Now lets discuss whether we should provide "gifts" to PCM employees.  Gifts are usually provided to individuals who are in a close relationship and considered members of the family.  This thinking is very dangerous for a public corporation.  Over the years, there have been many organizational behavior studies addressing managerial leadership effectiveness.  One of the principal findings is that when individuals in leadership positions allow themselves to develop personal relationships with those they are supervising, that relationship interferes with logical effective decision making. The supervisor/manager/director feels beholden to their friends and cannot make the difficult decisions involved in performance evaluation, discipline, compensation and benefit issues and job termination,  

A good example is when parents allow themselves to become the "buddy" of their child instead of being the parent who exercises parent authority and guidance.  We all have seen the results of that kind of relationship-lack of discipline and poor performance. 

Similar outcomes occur in businesses when the leadership becomes the employees' friend instead of the supervisor/manager/director.  This is the reason, most large corporate policies will not allow family members to work in the same work group, department or division--never have a supervisor over family members.  Unfortunately, we seem to have many directors who have become vested with PCM employees, which inhibits their ability to think objectively when dealing with employment issues; they forget a director's fiduciary duty is to represent shareholder interests and not those of employees.

Kathryn




####



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If we rationalize this statement step by step, we must first ask what lawsuits are pending.  This is a difficult question since the boards of LWV have repeated that there areno lawsuits pending.  If this is true, then what lawsuits are anticipated?  And, of course, why are they anticipating lawsuits?  Is this a tacit admission of malfeasance and impending judgment?  Is there some conspiracy that would prompt a RICO investigation?  It simply boggles the mind to speculate.
Next we must consider community activists who are exercising their rights.  I believe that this refers to increasing requests for financial documents.  Several directors have stated that they are often refused access to documents or they receive them so heavily “redacted” that the documents they receive are useless.  You could argue that residents might only have access to heavily edited documents (although that flies in the face of at least the spirit of Davis/Stirling and the governing documents of LWV.)  But directors are covered by confidentiality requirements and should have free and full access to all financial records.  If PCM actively interferes with free access, they are preventing the directors from exercising their fiduciary responsibility.  In fact, this is why Davis/ Stirling specifically grants them free access to these records.  Has PCM created a different state with some unique set of laws?
Why is there a large increase in errors and omissions insurance?  If increased requests for financial documents were coupled with anticipated lawsuits, the logical explanation would suggest that PCM is trying to hide the horrendous lack of oversight that past mutual boards have exercised—giving PCM free rein over spending up to and including haircuts, lavish gifts, parties, and questionable “business meals” that are approved without question. That would suggest an increase in insurance rates is a logical consequence.
It is certainly reasonable to say that LWV needs increased public relations.  Several residents have pointed out that while Leisure World was a readily recognized senior CID, Laguna Woods Village has abandoned that recognition and has had virtually no presence on the internet.  Up to a month ago, it was virtually impossible to bring up LWV by searching for senior communities or retirement communities.  This is a readily identifiable current need.  However, the only entity that required better PR in 2007 and 2008 was PCM which has increasingly come under fire from concerned residents demanding access to financial records.  PCM suffered serious damage to its image when two years of credit card records showed the extent of co-mingled funds, haircuts, Starbucks visits, On the Boarder meals, Las Brisas fetes, premium Angels tickets, $400 earrings, and on and on.  PCM, though, is a for-profit corporation while the housing mutuals are nonprofits.  Rumor has it that the recent attempt to survey residents’ satisfaction with PCM turned out so abysmally that the survey was scrapped over a technicality.  All of this questionable activity has resulted in PCM hiring a full time PR specialist (Rasmussen)—using resident member money of course.
One must note a few additional fascinating aspects of this increased management fee. The increased fee is now totally controlled by PCM, a private for-profit company owned by Disbrow and Olsen.  PCM has steadfastly refused to allow access to details of employee salaries due to privacy rights and the private nature of PCM itself.  Thus we can expect less oversight of management expenses which now include staff support and, according to Janet Price at a committee meeting, is another term for parties, free lunches, gifts, and incentives,  To make matters worse, unspent budgeted monies used to be carried over to the subsequent year’s budget and used to reduce any increase in assessments. With the monies buried under management fees, spent or unspent, this money is now a gift to PCM with a no-return stipulation.
The quandary for concerned LWV residents and concerned directors is the near impossibility to oversee PCM.  In addition to indecipherable records, PCM regularly moves budgeted items from one budget line to another.  Thus it is impossible to look at budgets from year to year and accurately review each expense.  It appears reasonable that some expenses will increase while others decrease, but moving expenses from account to account effectively hides the activity.  It would take a forensic audit to decipher the actual transactions, much less determine if they are usual and reasonable in accounting terms.  And this does not address issues such as the many for-profit subsidiaries of PCM and their financial involvement in virtually every operational area of LWV from internet services to real estate.  It does not address the question of whether PCM is running subsidiary businesses out of the LWV Community Center, rent-free, which are not support activities for LWV. 
Nor does it address the apparent violation of California Civil Code 1363.2 which states that all moneys deposited by the managing agent must be covered by insurance provided by an agency of the federal government.  Of course this last may be petty, but with the recent failure of two area banks, it would seem that fiduciary responsibility and prudence would dictate a more conservative approach.  But then again, it’s not as if it were PCM’s money; there is always more where that came from—out of our pockets.

If you would like to make a comment about a specific news article, editorial or commentary and have it considered for publication in the CotoBuzz Journal as a Letter to the Editor, please send it to buzz@cotobuzz.com --. Do not send attachments- or mail to Letters to the Editor, c/o CotoBuzz, P,O. Box 154, Trabuco Canyon, CA 92678

Letters should be brief, and may be edited 
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Desperate HOA Directors - Your Are Out of Order!

June 2, 2009 Golden Rain Foundation annotated board Meeting - as Board President denigrates fellow director and cancer patient Michael Curtis, while defending property management company's actions  Click here for the rest of the story.. 
Desperate Directors of Laguna Woods - The Facts Behind the Fiction Part Two - Click here for video

If you thought farming subsidies were bad, you should see the Laguna Woods Village nursery subsidies!  Click here for video clip
Keep out! - Nursery is a Dangerous Place...... for Inquiring Min

What we do with your money is none of your business: Click here for  video clip
Do not Ask, PCM Won't Tell: The LWV Accounting System - O




   

The Hen House Guarded by the Fox in Laguna Woods Village's Foster's Farm & the Hall of Shame  - News This Friday at 2:00 PM
Posted by CotoBlogzz  | 06/17/2009 04:00 PM
Laguna Woods Village, CA -Whether the United Board recall is absolutely necessary is debatable.  What is not debatable is the Golden Rain Foundations  board’s behavior during the June 2, 2009.  When all residents wanted was a little respect, board president Erwin Stuller resorted to unnecessary defamatory and personal attacks.  What is more appalling is that the rest of the board failed to step in and apply a modicum of decorum to the proceedings.  Such behavior is not only despicable but calls for an apology and stepping down. The video clip capturing Mr. Stullers less than despicable behavior during  the proceedings are quickly becoming a rallying cry against abusive HOA directors.

Hoist By Their Own Petard - Fuses get shorter in Laguna Woods Village
Posted by CotoBlogzz | 06/03/2009 05:00 PMLaguna Woods Village, CA -So, exactly what happened during yesterday?s Golden Rain Foundation (GRF) board of directors meeting in Laguna Woods
United Recall Petition Signed Sealed and Delivered - Finance Committee Meeting
Laguna Woods Village, CA - As promised, earlier today United Mutual director Michael Curtis during the Finance Committee Meeting, delivered a petition to recall certain United board boards, with close to 100 verified signatures over an above the required...
United Board Recall In Final Stretch ? 4th of July in June!
Laguna Woods Village, CA - Change is in the air. So is anticipation, excitement, thrill and for some, fear. Fear that their telephones are bugged. Fear of retribution. Fear of the unknown.
Prosecuting Mr. Curtis - or is it Persecuting?
Posted by CotoBlogzz | 05/26/2009 8:30 PMPCM General Manager Milt Johns, taking exception to the coverage by Orange County Register of the recent exile of United Mutual Director Michael Curtis from his own community, documents his displeasure at the..
Laguna Woods Village - United Board on Official Notice
TO: United Board:About a month ago, the official "United Membership List" was provided to me by Bill Hart. I believe it is dated April 29th. This is being used to verify all signatures on the Removal (or recall) Petition, so that the official...
The $5 Million Landscape Budget and Recall Petition
Laguna Woods Village, CA - We have been to Laguna Woods Village. We have seen Laguna Woods Village. The place is nicely kept, but how many gardeners does it take to justify a $5 million/year budget?That is the question residents are asking, as the...

How to recognize a cheater
The traditional cheater is, for example, the crude sneak thief. He is also the small-time bureaucrat or politician on the take. He needs little skill and much gall to extract his living. But he lives in constant danger of being caught in the act and...

Laguna Third Mutual's President Queries Answered
Which wolf will you feed today? Posted by CotoBlogzz | 05/06/2009 9:00 AM | Have you heard the story about an old man who keeps struggling with two constantly fighting wolves? The first wolf represents truth, the second represents evil. When he...


Laguna Woods Village Budget
I keep hearing at all the committee meetings, the capital expenses being approved come out of reserves and will not add anything to our monthly assessments.I beg to differ.

Law?  What Law?  WE are the Law!  Recent find of Original Documents were mailed to each President (GRF, Third Laguna Hills Mutual and United Laguna  Hills Mutual), together with information sheets from OriginalTrust and amendment to the Trust dated Jan. 9, 1969. These documents stated how and why Ross Cortese, the developer of Leisure World Laguna Hills, changed the concept of Leisure World Laguna Hills from a Senior Citizen non-profit Co- operative to a Senior Citizen non-profit Condominium Complex.

New Golden Rain Foundation Rules of Engagement
On the heels of the Golden Rain Foundation?s (of Seal Beach) decision to appeal the recent Court of Appeals decision, on a financial transparency lawsuit, to the state Supreme Court, the embattled GRF HOA board of directors recently decided to enact...
    
Cynthia Conners Being Asked to Resign Posted by CotoBlogzz | 2/10/2009 5:40 PM The Laguna Woods Village Shareholders Committee is asking Third Board director Cynthia Conners to resign her positions on the board for a number of alleged ethical violations.
New Third Laguna Hills Mutual of Laguna Woods Village Board Seated  The Third Laguna Hills Mutual of Laguna Woods Village seated the new board for that housing mutual today. Officers include Carol Moore, President; Stan Feldstein, 1st Vice President; Don Lippert, 2nd Vice President; Kathryn Freshley, Secretary. The voting was done by secret ballot and the anticipation of the members present was that business would proceed without the roadblocks of the past year.
The Devil Made me Do It - Blame it on the Loopholes
During Thursday?s CZ Master Association?s Candidate?s Night designed for Coto de Caza residents to meet the candidates running for two seats on the CZ Master board, the first question mischaracterized our position, asking an either or question: ?Buzz...
The Right LWV Leadership for Such a Time as This?
Is this general manager (Milt Johns) over his head in his management skills? Can someone come out with only experience from the garden to manage a 90 million dollar business without a conflict of interest? When is the last time Mr. Johns lowered our costs.
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$2 million Verdict Returned Against Homeowners Association
Conduct constituted malice, oppression, or fraud and committed by one or more officers, directors or managing agents of the HOA - Presiding Juror Earlier this week a jury in a case filed in Superior Court of California Riverside, a jury ruled in favor...

GRF 2009 Budget Review, Be There or Be Out of Luck!
Letter from LWV resident M. Curtis inviting concerned residents: Tomorrow (Tuesday, July 22) at 9AM, in the Community Center Board Room, GRF will have a Special Corporate (all boards) meeting to review next year's budget. See the...

Different Homeowners Association, Same Issues
I assume that you are a member of the Walnut Creek Leisure World Association, or is this another HOA in the area? We have had many comments of similar problems by HOA's who happen to run into our website and I'm glad that you contacted me

The Right LWV Leadership for Such a Time as This?
Is this general manager (Milt Johns) over his head in his management skills? Can someone come out with only experience from the garden to manage a 90 million dollar business without a conflict of interest? When is the last time Mr. Johns lowered our costs...

Working to Serve, Or Serving To Work - Letter to OC Register Columnist
Another good column. I was wondering if there was ever any serious consideration to any non-union government employee for the position of publicly elected Sheriff by either the Register or Supervisors? That is all I see in your Top Five selection and...

To Destroy a Community, or to Destroy the Status Quo?XThat is the Question in this Letter to the Menifee SCCA Board of Directors
First of all I have no intentions or no desire to destroy "our community". However, I must ask you to please define what you think the community is, what it is you think I am threatening to destroy?Secondly, Sun City has been declared a "blighted...

HOMEOWNER ASSOCIATION TITLEHOLDERS ARE "HUMAN CAPITAL"
by D. Vanitzian(c) 2007 Donie VanitzianWhen criminal liability is not charged against the "criminals" in an association, then the titleholders become the Human Capital used to fund the criminal activities and wrongdoing.

HOMEOWNER ASSOCIATIONS: A CLUB YOU DON'T WANT TO BELONG TO
This ain't no party! This ain't no disco! This ain't no community!

Dare's role in Pastures cost association $100,000
By BRENDAN J. LYONS, Senior writer First published: Sunday, Times Union August 12, 2007. Republished with permissionAugust 12, 2007 ALBANY -- An advocate for the Historic Pastures Homeowners Association, which lost more than $100,000 in...

HIRING AN ATTORNEY CAN BE HAZARDOUS TO YOUR HEALTH LEGAL
BLACKMAIL--TAKING CLIENTS HOSTAGE- Q: How can you tell when an attorney is lying? A. His lips are moving.August 10, 2007 If California can place caps on spending and caps on fees of various types of businesses -- then it needs to put caps...

BRING BACK GOVERNOR PETE WILSON
by Donie Vanitzian, JD(c) 2007 D. VanitzianYou can?t have a good old boys and girls club without a little help from friends in high places, of course, a little help from California?s State Bar wouldn?t hurt either. [FN1]Forget for a moment that the term...

Should I stay or should I go - in/from my HOA? X
First was the Delegate?s Corner blasting CZ Master Association board of director?s critics for speaking out against a corrupt delegate system and electoral process in favor of direct elections, consistent with current legislation, and consistent with the...

Casta Courier Coverage of Unhappy Campers at Leisure World
I'd like to comment on the following paragraph that was in your publication "The Casta Courier" on July 19, 2007. The second paragraph reads as follows:
SPENDING OTHER PEOPLE?S MONEY by Donie Vanitzian, JDX(c) 2007 Vanitzian
I mean really! How difficult is it to spend other people?s money? Cheech!! It?s a no brainer, especially with no statutory accountability. "Hey man, it ain't difficult" one board member tells me, he says "no one gives s**t." He proceeds to point to his...
Critics do not attend board meetings - GRF that is!
Critics do not attend Home Owner Association Meetings to learn of actions deemed necessary by their Board!August 6, 2007 Critics are principally individuals who fail to attend Home Owner Association Meetings to learn of actions deemed necessary...
The New Seven, err... Eight Wonders of the World
CZ's definition for leadership is that whenever questions are raised, the canned response is ?Remember the Reserves?! Now CZ Spin Machine has to be the Eight Wonder of the World!- August 6, 2007 The results of the NOWC?s New Seven Wonders of...
"TWIN RIVERS" = "TRIPLE PROBLEMS"
Note to the do-gooders whose glasses are corrupted by the half-full half-empty circular-argument nonsense and who want only to hear the good-of-it-all and nothing too depressing, oh, and want only smiley ha-ha journalism: Go grab your teddy bears and...
Lawyer seeking condominiums' business goes over the line
Question: I manage a large condominium project in Los Angeles. Unsolicited, an attorney sent me an invitation to meet with him over lunch. He then phoned me several times, including the day before the lunch, explaining the purpose was to speak only with...

CONDOMINIUMS ARE A GREAT INVESTMENT- FOR LAWYERS
About every two months I get a call, or a client comes in to ask me about condominiums. It usually starts off with, ?I bought this adorable little condo? and then the upstairs neighbor had a flood?. And then the Homeowners Association refused??
Paraphrasing the LA Times on Defeat of SB670 & Wicked Twin Witches of the West - SB 127 & AB-980
Taking a page out of the OC Register?s ?paraphrased reporting?, an article written by LA Times staff writer Diane Weder titled ?Bill to limit transfer fee founders?, published appropriately on May 13, 2007, quotes the president of the statewide Realtors...

Private Transfer Tax - Good for the Common Interest Development (HOA/CID) Industry or Good for the Politicians?
When we received our copy of the report that the California Association of Realtors (CAR) used to Sponsor and help draft transfer fees, we were confused. Given that Vanitzian has become an icon in Sacrament (some say a thorn in the legislature's side),...

Management company's tape-recording tactic puts homeowners at risk
Question: Because our management company has been sued before, it has a policy of recording all incoming and outgoing phone calls. Before a management employee answers the phone, there is an automatic announcement warning callers they are being recorded....

Of Trial Lawyers, the AAJ and the Democratic Party
The National College of Advocacy and AAJ Education maintain two distinct programs that recognize AAJ lawyer member efforts in pursuit of advanced legal learning and professional development?the Achievement Recognition Program and Advanced Studies in Trial...

Laguna Woods Village CC&Rs, What CC&Rs? I Got Your CC&Rs Right Here!
Coto de Caza is not the only place where the board of directors consistently either disregard the civil code, governing documents (Covenants, Conditions and Restrictions - CC&Rs) or even the moral code.

What is better in HOA Management? Transparency and Accountability or Feel Good?May 22, 2007
Mostly as a result of the Enron and Worldcom scandals, the Sarbanes-Oxley Act of 2002 known as the Public Company Accounting Reform and Investor Protection Act of 2002 and commonly called SOX; was enacted to provide business executives with less wiggle...

HOW DO OWNERS SPELL L-A-W S-U-I-T? SENATE BILL NO. 127!X
This author asks WHERE ARE THE PENALTIES AGAINST MANAGEMENT COMPANIES AND BOARDS? WHAT?S THE PENALTY FOR BREAKING THE LAWS THAT THESE LEGISLATORS ARE PASSING?

Two of the Worst & Most Detrimental Laws to Hit California are Sponsored by None Other than: California Association of Realtors (R) The Gold is Gone --No more gold in the Golden State!
Dear Governor Arnold Schwarzenegger,
SHATZI! PLEASE REMEMBER YOUR PROMISE TO US. Please listen to the people who support you and look to you to help us! When you first began buying property in California NO ONE told you what you could or could not do...

THE LAW OF INTENDED CONSEQUENCES - WHAT A DIFFERENCE A "WORD" MAKES: NO! ON ASSEMBLY BILL NO. 563
It apparently does not matter that titleholders with a vested interest in their property cannot get their legislators to carry legislation to help US, but, they can waste taxpayer funds by preventing the bills WE WANT and NEED by CHANGING *ONE* WORD in an...

EMERGENCY! EMERGENCY! OOPS! WE JUST HAD THE MEETING! YOU MISSED IT!!
So THIS is what the Senate calls an "Open Meeting." How many Open Meetings have THEY been to? Obviously not many. ROTFLMAO!

CAN YOU OUTSWIM YOUR HOA SHARKS? or will you drown trying?
Owning, let alone living in an HOA is a tough JOB and requires you be physically fit, possess a certain sophistication of the processes, and have the character let alone stamina, that allows you to be persistent in a manner that indescribable to REAL...

HEY GRAY PANTHERS! YOU GOT IT WRONG!
(c) D. Vanitzian
May 16, 2007The Gray Panthers are on record as SUPPORTING A BAD BAD BAD BAD BILL: Senate Bill Number 948. SHAME ON YOU. Where the heck are you getting your information from?

The Law of Unintended Consequences: Legislation and HOA BOD Cause and Effect: Clueless in my CAR Coming off a most improbable but successful campaign to defeat SB 670 author and HOA advocate Vanitizian thanks supporters making a connection between the quality of legislation being passed in Sacramento, and the quality of life in most homeowners...