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March 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!
Bring
it On
Posted by By Oscar Madison 2/19/2009 10:00 PM
In
a recent article I discussed how newly elected HOA
directors suddenly exhibit behavior changes closely
related to the Stanford
Prison Experiment.
In this psychological experiment random student
volunteers were divided into guards and prisoners and
then began to live their roles, showing signs of
paranoia, sadism, and brutality.
Tonight, Pam Grundke at a Residents Voice (of Laguna Woods Village) meeting chalenged Milt Johns (General Manager for the Managing Agent, PCM) to “bring it on!”
It seems that Milt Johns issued an ultimatum (click on link for additional details) to the Third Mutual of Laguna Hills board. Either they quit acting responsibly (hiring an independent attorney, attempting to move their financial accounts to a separate bank, telling PCM what to do) or PCM will opt out of Laguna Woods Village in 90 days.
It
has been obvious for the past two weeks that PCM is
not supplying office staff to cover Third board and
committee meetings.
Their absence has been conspicuous.
At Tuesday’s Third Board meeting, Director
K. McDaniel alluded to a series of actions which
have threatened the board and made it impossible to
function in a normal way. In closing a short speech detailing a number of abuses she
offered a resolution to seek out alternate Managing
Agencies so that in case of an emergency (PCM leaving
suddenly) they would have an alternate firm waiting in
the wings, qualified and ready to step in and take
over.
Is
this what is behind a sudden closed meeting of
ALL BOARDS called for Friday afternoon with
essentially no notice or agenda posted?
Is this behind the numerous special and closed
meetings of the past few weeks?
No one knows and since the meeting will be in
executive (closed) session, no one is talking.
Of course, it might also have something to do with a recent letter by Mike Curtis which appeared under the heading Director’s Corner in this week’s Laguna Woods Globe. In his article Curtis cites written communications from PCM executive staff, Cris Trapp and Janet Price, which confirm that the PCM incentive plan originated in 1996 and was never disclosed to any board until it was inadvertently discovered in 2006.
Furthermore
the payouts over this period averaged $450,000 per
year…which by my meager math skills turns out to be
roughly $6 million taken from the Senior Citizens in
Laguna Woods Village without their knowledge or
consent. Is
this a smoking gun for malfeasance by PCM for over a
decade? Hard
to say what the legal opinion will be on that account,
but as one resident of the village said, “Return our
money!” Is
there (another) class action suit in the making?
Is the IRS listening?
Time will tell.
Although a few hundred residents attended the Voice meeting Thursday to hear a presentation from the Merritt Corporation (another firm that manages HOAs) the real show were the Grundkes. Stating that they were tired of (Resident’s Voice) being blamed for everything that upsets PCM and their fellow travelers, Grundke went on to reveal that two Third board members had become Judases and violated the trust given them by the residents that elected them. Specifically cited were Carol Moore, Third Mutual board President, and Dr. John Paulus, chair of the Third Mutual board Finance Committee. Although elected as part of a reform movement, these two directors in the past two months have repeated voted against the very actions they supported to get elected.
Apparently
this accusation came as a blow to Paulus who was in
attendance at the Voice meeting. Although he was in the audience when the lights dimmed for
the Merritt presentation, Paulus was conspicuously
absent when the lights came back on.
Was he called away on important business or was
his tail seen tucked between his legs as he left
surreptitiously?
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