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October 2009
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
Closing the Books
on the Laguna Woods Village’s United Board of
Directors - Recall, that is
Posted
by CotoBlogzz 09-25-2009 11:0 AM
Laguna
Woods Village, CA
– The Laguna Woods Village’s United Board of
Directors Recall has officially closed this one
chapter. While
the recall election of four
seated United Mutual directors, fell short by
approximately 280 votes of the 3,790 ballots received,
Michael Curtis, the leader of the movement feels the
recall effort was very successful, according to a
press release issued today by the LWV
Recall Yes committee.
Mr. “Curtis points to the high turnout of
voters (61.4%), simultaneous reductions across all
boards (a first in LWV 45-year history) of proposed
2010 assessments to 2009 levels, with no reductions in
services and savings the community $1.2M in 2010, and
greater awareness by the boards that any director can
be recalled by the community”.
Not
to mention that this was the first-ever recall effort
in the history of the community, that the board fought
tooth and nail using community resources making the
recall process less than proper and that the results
can be challenged in court, given the recent
precedent-setting Lee
Vs. Stonewood, where the board of directors was
ordered to hold fair elections meeting the spirit and
the law.
So,
who won? In
the case of McDaniel
Vs. The Laguna Woods Village Third Board of
directors, transcripts show that the Judge admonished
the board and states not once, but twice that Ms.
McDaniel had the upper hand – you would not know if
by talking to the Third directors, who claim a clear
victory, pointing to the fact that Ms. McDaniel is not
longer on the board.
When we first learned of the recall, we predicted that the United board would resort to the tactics it used to defeat the initiative. It is also clear that the community was galvanized as a result, forcing residents to get off the fence. Even some supporters of the recall process believe the recall left the opposition weakened. We do not agree. Although it is clear that abusive boards have the upper hand in terms of funding and how common assets can be use for self-defense, the flurry of precedent-setting decisions against abusive boards, such as Golden Rain Foundation Vs. Franz , McDaniel Vs. Third Board and Lee Vs. Stonewall HOA, a clear road map is starting to emerge, which encourages reputable attorney’s to undertake the less lucrative defense of residents - To promote this notion, the CotoBuzz Journal will be publishing the HOA Hall of Fame, designed for attorneys who take positions against abusive boards and beat them at their game. The first nominee is Mr. Clarence K. Chan, representing Lee in Lee Vs. Stonewall HOA, for example.
Having gone through the process, Mr. Curtis believes that a different approach may have yielded better results. For example, specifically focusing on the property management company’s , Professional Community Management (PCM), refusal “to return more than $5.4M in assessment funds after PCM admitted in writing to secret payouts to themselves with no board knowledge or approvals. Last January, the United Board voted to continue their policy of hands-off regarding the issue and censured Curtis for investigating. Since February of this year, after Curtis went public with PCM records and the board’s refusal to take required action, he has been excluded from all executive (closed) board meetings, and also excluded from business office areas. Curtis believes each of the four governing boards of LWV, representing 12,736 homes, can and should still take action to have funds returned, with interest and penalties.”
According to the press release, “the Laguna Woods Village LWV Recall Yes committee closed out their books with a surplus in donations of $623.80 and donated the surplus to the Florence Sylvester Senior Center located in the community. Mike Curtis, leading proponent of the recall committee, and Frankie Henry, Treasurer for the LWV Recall Yes committee, report donations of $6,328.59 and expenses of $5,704.79. They wish to sincerely thank all those contributing their talents and efforts supporting the recall”
The Cotobuzz Journal is currently considering nominations for inductees to the HOA Hall of Fame – contact us for additional details
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