The CotoBuzz Journal, Community Journalism

June 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

The $5 Million Landscape Budget and Recall Petition

Posted by CotoBlogzz | 05/22/2009 09:00 AM

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 United Mutual Petition for Removal of Four Directors goes into overdrive.

United Laguan Hills Mutual Proposed Budget - click here

The four targeted directors include board president Loyd Foster and directors McNulty, Rubin and Wilson.

Amidst allegations of intimidation, the force behind the petition for removal, United Mutual Michael Curtis has tried to re-assure residents they have nothing to fear saying "Members need not worry about some retaliatory action by the Board or PCM - that cannot happen". Adding that the recall effort is:

" because the United Board has continued to road block all efforts to have the skimming from our treasury investigated and brought to the open

".. it's about "the Board" itself and their lack of support to the community on this issue, lack of transparency, and blindly following PCM's advice instead.."

"I have been handing out the petition but it has been worse than the work I do with anti-mafia and corruption in Sicily - the hold PCM has in this community and the fear they have instilled is shocking me", reads an email from a volunteer asking residents to support the petition for removal effort.

LWV Landsacepe Budget with a view - from residents

Past United Director June Todd issued a stern warning to the the United Board in response to a seemly unilateral decision taken against director Curtis, and reminding the board of their fiduciary responsibility

To all of you - I would like to remind ALL OF YOU that PCM does not have the authority to exclude one of our DIRECTORS from the second floor. We members own this building and we have given PCM the right to use it for some of their employees. PCM works for the members in this community and cannot dictate to our Directors.

Mike Curtis has been elected to our United Board by the "members" of this community, therefore, this is a matter for our United Mutual Board of Directors. If Mr. Curtis is doing something wrong, then I hereby request that our United Board of Directors take up the issue. Mr. Curtis must be given the opportunity to defend himself instead of all these accusations.

1.) Proof, in writing, must be given to our United Board of Directors by PCM.

2.) Mike Curtis then should be called to respond to it before our Board.

3.) Mr. Curtis has the right to ask for an "Open" meeting of all the membership and the Board must grant it. We members have the right to know what is actually going on here. Mike Curtis is a Director that was elected by a huge majority of our community to represent us.

Any action taken must be taken by the Board, not the, management company.

Read your governing documents - June Todd, past director of United Board and card carrying, voting member of this community

Resident Kay Margason on the other hand, first want to know why Mr. Curtis is being singled out by PCM. Mr Curtis alleges that the property management company PCM is trumping up charges because “ PCM just does not want me to have access to anything, and so have continued to pull these things. Using "employee harassment" is currently a very popular (and serious) method of getting attention”, he writes in response to Ms. Margaon’s queries and goes on to explain that:

“ Milt Johns only has female staff working directly for him - his admin staff. The folks that work for Milt have "dream jobs". They are very well paid, have full medical benefits, plenty of vacation, have 401K plans, work flex hours, work in a very relaxed and low-pressure environment, and frequently enjoy recognition, parties, gifts, and other recreation on PCM’s $80,000+ budget for “employee morale.” They also know they must protect PCM, and Milt, to keep it all going.

Milt has instructed all of his staff to not respond to me when I ask questions or need something. This is related to my many requests for accounting books and records, as well as learning more as a director about operations. He's been very strict about this. Generally, when I get answers to questions and issues, PCM, Milt Johns, and Janet Price have problems. So, I've been cutoff. But, it's become much worse in recent months. I have been instructed to deal only with Cris Trapp if I need anything. To make it even tougher, Cris has required me to send a letter if I have questions or need something - even for the simplest things such as occasionally asking for a pen or paper. So, on occasion, perhaps once a month or so, when I've asked Milt's admin staff (e.g. Kim Taylor or Wendy Bucknam) a simple question (e.g. "Can I leave a message for Cris"), their responses are "don't talk to me" - and that's it, no help, and I go back to the director's room.

There's a ton of money at stake here, and so I expect this to get much worse in the future. I hope people understand that, (a) yes, I'm a big guy and not afraid to speak up, but (b) PCM is fighting this intrusion into their "cash cow" domain with every game they they can come up with"

Mr. Curtis' response as to why PCM has decided to cut him off from the information loop

Mr Curtis continues to argue that removal of the targeted directors is not only the right thing to do, but subsequent replacement of such directors with independent-mindend candidates might just get the board to "start performing their fiduciary duty to be good stewards of our money, investigate questionable activities, and be much more responsible towards members. After all, Bill Hart, the Board's attorney, has actually told the Board that "their duty is to protect the management company." That is not the Board's duty and directors should know that. Instead, they follow like puppy-dogs and claim anyone speaking up must have their own agenda and want to destroy the community"

The targeted directors and argument for removal as articulated by Mr Curtis follows, including his rational for not pursuing the removal of Strom, Dalis, McIntosh and Vogel a this time

Lloyd Foster - Board President. A total and constant roadblock regarding my violating the board's secrets. He is in PCM's lap.
Linda Wilson - Can't help but continue to spend money even during these rough times. Always must get the last word in, and it's almost always that PCM is right, doing a great job, and "Mike Curtis doesn't know what he's talking about".
Marty Rubin - Does not communicate opportunities to participate, suggests he's the moral compass of the board yet misrepresents facts, and purposely votes against what I might propose - regardless of what's best for United.
Gail McNulty - This is the magazine reader you've seen on TV. She's arrogant and throws her passive-aggressive questions and insults to others who speak against PCM. She threatens to "have the room cleared" if residents speak up. Then, also as seen on TV, she frequently walks out of the room without listening to opinions of others.

These other board members below have terms ending in September and a recall would not make sense.

Bevan Strom - Argumentative, thinks she's always right, insulting towards others.
John Dalis - Believes PCM staff should just handle everything, and we have no problems.
Maxine McIntosh - Another passive-aggressive. She frequently indicates concerns regarding a certain issue, but then votes with the board regardless.

Paul Vogel - Was only appointed - not elected. A PCM/Janet Price lap dog. Rarely speaks at meetings, except for an occasional 1-liner. Says he wants to hold current spending down, but does nothing.

Mr. Curtis argument as to why removal may or not may make sense

We are in the habit of asking the United Board and the property management company to comment on our coverage to make sure it is factual. This is not different. However, in the past, both the United board and PCM management have turned down our multiple requests for comment and we do not expect to hear from them now, particularly, because the event happens to fall on a holiday - se we urge anyone with factual evidence that may refute any assertion and or assessment contained herein, to set us straight.

So what is the status of the United Mutual Petition for Removal of Four Directors? We understand there is a lot of buzz with some 20% of the required signatures already certified.