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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!
The
Thrilla in the Villa: Laguna Woods, that is - The
Ultimatum
Posted by: CotoBlogzz |
02/21/2009 10:00 AM
After a successful Initial Public Offering (IPO)
and experiencing an exponential growth in revenue
circa 1996, Gateway Computer issued an ultimatum to a
computer peripheral supplier: You can bid
on a new product, however, you must significantly
improve the quality AND reduce the price of the
new product, or else. The demands were
so drastic that the CEO of the Taiwan-based supplier
conceded in a press release, picked by by various
local newspapers, to having lost the Gateway
account.
However, a young executive decided that not all was
lost, and although the Taiwan-based supplier had never
proven able to deliver a quality product, he figured
out a way forward: Radical changes were
implemented and the new product established new sales
and quality records for both Gateway and the Taiwanese
supplier.
Milt Johns, Professional Community Management (PCM)
vice president, issued the Third Mutual of
Laguna Woods board of directors a new kind of
ultimatum. In a classic case of the tale wagging
the dog, it is the service provider issuing the
demands and "respectfully requests the
directors to adhere to the following conditions",
reads a memorandum dated January 20, 2009.
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The conditions define a code of conduct for board
members, including a Shut Up Rule: "Directors
will not make demeaning or hostile comments about
staff nor the general manager in any venue other than
closed session meetings of the board".
Additionally the demand in essence turn the
employer-employee rules around, by having the service
provider dictate what the board can and cannot do as
in "Directors will agree to not breach the
management agreement by performing any work of the
managing agent, eg. Preparing RFQs/RFPs to solicit
proposals from banks, law firms, lien and collection
companies, etc.", presumably not going out to
bid for property management services either.
In the case that "board members question an
action on the part of PCM that they deem not to be in
conformity with its duties as managing agent, a
mediator will be hired at the expense of the Mutual to
privately resolve the issue." In other
words, if the service provider is not performing,
quietly hire a mediator at resident's expense, and
maybe that will shut them up.
The demands also describe a chain of command:
"To assist the Directors to this end, and
effective immediately, and until further notice, any
contact between the Directors of Third and PCM shall
be restricted to only the PCM Executives (currently
Jerry Storage, Jane Price, Kurt Rahan and Russ
Ridgeway".
However, Mr. Johns will be "very happy to ease
these restrictions once the roles of the Directors and
PCM as management agent have been reconciled to the
mutual satisfaction of both parties." so
states the memorandum.
Gateway's ultimatum to the Taiwan-based supplier
significantly raised the performance and quality bar.
And although the Johns' ultimatum to the Third Board
seem to go South, we understand there are some Third
board members willing to accommodate Mr. Johns'
demands. Judging by Gateway's pursuit of
excellence, seems like if Gateway executives where in
the Third board, they would have fired the service
provider on the spot, had it tried to establish such
ridiculous rules of engagement.
But wait, there is more! In a regularly
scheduled meeting this past week, a group of
disgruntled residents, otherwise known as the
Residents Voice, loudly stated that "we are
mad as hell and will not be taking this anymore"
and challenged Mr. Johns to "bring
it on!"
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We have asked PCM representatives to confirm whether
PCM is seriously willing to walk away from the Third
gig, but have not received a response.
We understand that a hastily called closed meeting of
all boards scheduled for yesterday did not take place
- apparently the ultimatum was placed on ice for the
time being. We have tried to contact Third Board
members, but so far, mum is the word.
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Comments. WHO the hell is Milt Johns? I mean REALLY - Sherman Tank PCM Executive - BUZZ Having experienced PCM for 6 years as an employer, I am glad to read this story - Dee As you may know, PCM has been in the news for years, and we have been covering the community for some time - PO Box 254 Trabuco Canyon, CA 92678 - BUZZ |
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