The CotoBuzz Journal
Community Journalism, Newsletters and Blogs Covering South Orange County, CA
The CotoBuzz Journal is a member of Investigative Reporters and Editors (IRE) and NAHJ
October 2007 ISSUE
We do not make jokes, we simply watch the LA Times, the Orange County Register and CID/HOA board of directors and report the facts!
Outsourcing Decision Making to Property Management Companies
Arguably, outsourcing can be a
manager’s best friend, or worst enemy. It is fair to
say that most people get paychecks prepared not by the
employer, but by companies such as ADP.
Of course, we also know about the call centers
in India.
| What about homeowner association
board of directors outsourcing decision-making to
property management companies?
|
| For example, in a paid advertisement run by the OCR (September 21-23, 2007), the Laguna Woods Village’s Resident’s Voice includes examples of “emergency use only” expenses incurred by PCM General Manager Milt Jones such as a $441.79 Tiffany & Co gift for retiring Laguna Woods Globe editor (owned by the OCR) or a $713.77 tab at Las Brisas Restaurant. |
| The solution to these
complaints? Change
the wording to property manageme |
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To add insult to injury, the property management company fees for Laguna Woods Village have increased by 69% in five years, according to the paid advertising piece. "When I read the Management Agreements that were signed by the Mutuals, it makes you wonder if they had a give-away contest to see who could give PCM the most for the least return", said Resident's Voice Connie Conrad, when we asked if he know of documented evidence to justify the exponential increase.
We
are waiting to hear from PCM Laguna Woods Governmental
& Public Affairs Manager to comment on this story.
|
If you think this is an isolated
instance, think again:
The CotoBuzz Journal has documented a number of
requests sent to various auditors for clarification of
fees charged by property management companies.
Our own requests to CZ Master Association’s
auditor have gone un-answered. |
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|
LagBlozz- The Discussion Forum exclusively for LWV residents |
On an apparently
un-related story by David Wighton and Ben White, published September 16, 2007, the Financial Times of London, the
authors write “Don’t bother ringing up a Wall Street
bank with a bit of business at 8am on Tuesday morning.
Everyone will be too busy poring over Lehman
Brothers’ figures”, then go on to
describe the mortgage-backed securities debacle,
including pervasive creative accounting echoing the
infamous figures don’t lie, but liars figure:
“Some executives at rivals question whether
the figures will provide an accurate picture, given
the discretion allowed by accounting rules.
…It is going to be difficult to work out whether
Lehman has calculated its numbers on the same basis as
the other firms” – So there you have it – our
contention is that the more managers outsource
decision-making, the more the fox will feed on the
hen!
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