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As a CotoBuzz exclusive, we first reported the firing of Securitas as the CZ Master rent-a-cop company, on July 18, 2005, just hours after a Coto resident affiliated with the new security company, under the cover of darkness (Friday July 15 at midnight to be more precise) was recruiting current Securitas employees by inviting them to "..apply with Universal Protection Services and remain at your current assignments. As an incentive, we will be offering you a hiring bonus of $500.00 to join our company". so read a memo addressed to All Current Security Officers at Coto de Caza, dated July 15, 2005 co-authored by UPS' regional and branch managers.

This midnight raid was followed by a counter offer, July 18, 2005 from Securitas branch manager by offering "...a Retainer Bonus of $600.00 and place you at a closer post to home.." according to memo authored by David Nakamura.

Blindsided, various Coto Discussion Forum readers called for due diligence reports on the switching of security companies: "if this story about firing Securitas is true, it represents one more of many unprofessional fiascos of the highest order" . CJ Clug where are you? You are supposed to be the professional CZ hired to properly manage the Association. I have no problem switching from one supplier to another; but it should happen as part of a rigorous competitive due diligence bid process; not in the middle of the night to give business to some crony of the Board". This reaction followed by mostly unanswered requests for information "... to do a full background check on this new firm that apparently went about hiring Securitas employees with bonus money in the middle of the night. If these stories are true, they are shocking, unprofessional, unethical and sleazy". The story not only turned out to be accurate, but it goes from bad to worse.

Other questions fired to the CZ General Manager that were not properly answered:

1. Did the Board issue a formal RFP to select Universal and was weighted scoring used to arrive at this firm? Or, was just informal interview used?

2. Since there has been no announcement concerning the process or the change, when did the Board go out to bid for security services?

3. How many companies actually bid on our business?
4. Is Universal in the top three security firms in their industry?
5. Who are Universal's major clients in Orange County?
6. How long has Universal been in business?
7. Who owns Universal? Who are the principals?
8. If they have a Dunn and Bradstreet number, please provide.

In the August 2005 CZ Master President's letter, The president casually writes "..if you have not already noticed or heard, we have decided to select Universal Protection Services to replace Securitas as Coto's gate access/patrol company. We have had a long and very good relationship with Securitas, but Universal came in with a very compelling offer and program that we would have been remiss if we did not select them". For the past three years, CotoBuzz has documented areas showing lack of cost effective service provided by Securitas. So perhaps the relationship the president talks about is more personal than professional.

On July 23, 2005, CZ Master General Manager confirmed to former board member Joseph Morabito "The Universal Proposal will be available in the Association office per your request". On July 23, 2005, Joseph Morabito and district delegate Joseph Aguirre stopped by the Association office to audit said proposal. Results: Not only was the General Manager not present to respond to any questions, but the audit team found that contrary to CZ Master Association president's assertion of a "very compelling offer and program" from UPS, what was available was simply a collection of flyers, with no scope of services, service level agreement or pricing, one would reasonable expect to see. Repeated requests for clarification have gone un-answered to date.

The confusion does not stop here. When the president's letter fails to confirm that the service provided by Securitas fells short of the mark, this does not bode well for Coto or UPS either. When people do not recognize they have a problem, they will not be able to fix it: How will Coto residents know that UPS is providing a good service? Going by the CZ General Managers method, "if the contract is renewed, then they are doing a good job", is simply not acceptable.

A Coto Discussion Forum writes "We had some very good friends over for dinner last night who were quite upset over their treatment by the security guard at the Oso gate. These friends are on our permanent guest list. They gave the guard our name; he asked for the address. They gave him our street, but said they didn't know the number. He said they were causing him a lot of trouble as he would have to look it up. He then "looked it up" (wouldn't he have to look it up to see if they were on our guest list?). When he finished he told them they had caused him a lot of extra work having to look us up in the computer. I guess his attitude did not reflect "welcome to Coto" and I am quite disturbed by these unpleasantries. Is this the "old" company or the "new" company? Doesn't the job of the gate attendant revolve around giving passes to guests that have been called in and doesn't that require a search on the computer to discover if the guest has been called in?" According to a document addressed to all "Securitas employees" from Securitas Branch Manager, the contract with CZ Master Association ends September 1, 2005. This can be further evidence of either hasty decisions, or careless planning, as no transition plans seem to be available.

Further evidence of the above statement is the launch of a new and improved transponder plan announced last month by the CZ Master General Manager. When we asked for clarification, we received a typical response: Un-responsive. Why would the board launch a new transponder program days before they terminate Securitas contract? The answer is provided in the August 2005 President's Letter: "We had a couple of delays, but the program will commence with you getting a phone call within the next couple of months.." If this is not an example of gross incompetence, we do not know what is!

CZ MASTER ASSOCIATION JULY 2005 MEMO UNWOUND

Following are comments to the August 2005 CZ Master Association's Presidents Letter in no particular order:

Lies, lies, lies – a compelling argument - It is questionable if and when the board would have let us know about the termination of Securitas as the security company if CotoBuzz had not broken the story.

It is questionable whether the board doing business with Coto residents is legal. There is no question however, that a midnight raid on current security personnel is an ethical lapse.

It is no question that Bob Varo claims that Universal is familiar with GateWorks (refer to previous documented lapses on this project). What is questionable is the relationship between the Mitch Hill heading the questionable GateWorks project and the selection of Universal.

It is questionable whether the potential savings as a result of the compelling offer will be used to subsidize The Estates and The Villages and continue CotoCAN funding. There is no doubt that, after CotoBuzz broke the story, Bob Varo promised a “…very compelling offer and program, that we felt we would be remiss if we did not select them”. There is also no question that an audit to review the promised deal, found absolutely no compelling offer. It is no question that the audit team was told that The GM Had received formal proposals from Universal, Pacific Oaks Security, Guardsmark, Securitas, Allied Barton and Boyd& Associates. It is also not question that the audit committee did not find traces of one quality proposal.

Given the pattern of questionable decision making, apparent cover ups, and ethical lapses, CotoBuzz would be remiss if we did not ask the Board to resign.

Transponder Program Off Again On Again - Last month, when the CZ Master President announced that after extensive research on behalf of the board by a team of security consultants, a new transponder plan was ready for implementation, we were curious about how this would work, given that the Midnight Raiders were waiting on the fence. When we asked for details regarding the plan, we had to define the term plan so the GM would understand what we were asking for.

Needless to say, we did not get far. But surprise! This month’s president’s letter tells us that there were “a couple of delays, but the program will commence with you getting a phone call…..”. We are not sure if we are being counted as one of the delays, but given what we know about the Midnight Raiders, we are more interested in the details of the plan than ever!

Vendor Management -As if this was just another routine action, the August 2005 CZ Masters President’s letter asks if you have heard (from Cotobuzz we gather), that the board decided to select the Midnight Raiders aka Universal Protection Services to replace Securitas as Coto’s gate access/patrol company. The president goes on to say that “We have had a long and very good relationship with Securitas, but Universal came in with a very compelling offer and program we felt we would have been remiss if we did not select them”

This is very disturbing! Characterizing the relationship with Securitas “…as long and very good…” simply indicates that the board is either clueless as to the state of security within Coto, or is setting up yet another excuse for poor vendor management. Given that the GM was not able to produce a scope of service, a service level agreement or any other form of due diligence during a recent audit, a reasonable person that the new security company will be as mis-managed as Securitas was.

Now, Bob Varo indicating that “Universal came in with a compelling offer, lends credence to the alleged “friendship” between UPS and the Board. Especially since the audit team did not find an offer, and certainly could not have been less compelling.

So much for vendor management!

Creation or Evolution? - The August 2005 CZ Masters President’s letter states that Varo met with Sheriff Corona regarding traffic enforcement in Coto. He goes on to say that “this issue of traffic enforcement is one that has evolved because Coto is not an entity that is capable of contracting with the Sheriff’s Department for police services”

We believe that the issue is the yearly doubling of traffic accidents within Coto since Varo decided to cancel the CHP contract for traffic enforcement. For three years, CotoBuzz readers have told the board that contracting the Sheriff for traffic enforcement was the wrong solution.

Prior to the termination of the CHP contract, captain Elzig sent numerous requests to meet with the board. The CHP also requested time from a board meeting to discuss the launching of a proposed resident awareness campaign – no response from the board. A former board member opines: The Board has continuously ignored pertinent information regarding the CHP and the Sheriff and keeps "discovering" the limitations on the Sheriff re proactive traffic enforcement. Most people would do the investigation before canceling the CHP. Seems they have talked to everyone, but the CHP and former Board members.

The August 5, 2005 issue of the Wall Street Journal states that Very Old Eggs Reveal A Fast, Changing Path Through Evolution. Prof. Kerfoot of Michigan Technological University "By hatching the eggs one muddy layer at a time, he realized that he could compare one generation with another to investigate evolutionary changes". Sort of like Bob Varo has done over the last three years.

So, is the problem evolution or creation? We believe that evolutionists continue to be on the wrong side of history!

Mission or Perdition? -The proposed Mission Statement to go along with the 2006 Budget is either disingenuous, arrogant or both:

Firstly, this mission statement is intended to give Mitch Hill a free hand with this “vision” of continued subsidy to the Estates, The Villages, CotoCAN and everyone else that comes along begging for a handout. Perhaps more along the lines of what Joe Morabito might call “feel”, and well beyond the scope of what the association was created for and does not focus on the real issues.

Secondly, any mission statement that is not supported by core values and beliefs is at best an exercise in futility.

Thirdly, Mitch Hill’s misguided intention to re-define the term “community” to include the Estates and Villages, and the participation of the rest of the BOD in such act, is simply naïve and irresponsible.

The purpose of the CZ Master Association, as stated in the CZ Website is:

The purpose of CZ Master Association is to ensure that the Common Areas and Common Facilities will be maintained in an attractive manner and will be available for the enjoyment of all members. As members of the Association, we all share in the future costs of maintaining these Common Areas and in covering the costs involved for administration of a large Community Association.

Family Budget - Given that the current board believes Coto residents are financially illiterate (why else would they say that “the budget process, although larger, involves the same challenges of a family budget, where annual increases in the CPI must be taken into account by increasing revenue or decreasing services”

Obviously, this is a set up, by fallaciously stating that there are no other alternatives, such as “being fiscally responsible” and having competent management, etc. However, to humor them, what if Coto’s budget was managed like a family budget? For example:

If my kids want to live in my house, without paying rent, they MUST abide by our house rules. If they break them, they pay dearly. Hint: In this case, the Estates and Village kids would not only pay for all the gate over-runs, but would be assessed stiff penalties.

If aunt Betsy and uncle Bill want to prolong their visit, they MUST pay their fair share for groceries, and other consumables. Hint: In this case, the Estates and Village people would have to carry their own load.

If our accountant fails to detect over-invoices and rarely looks at the books and instead wants to hire consultants to do that work, we simply fire him. Hint: In this case, Keystone would be fired for failure to do their job.

If any member of the family wants to find out how they are doing with their respective share of the budget, the books are totally open. Hint: In this case, every district’s budget consumption would be known to any resident.

If our cousin Cara wants to have a party where you can play sports or watch a movie for free, she can simply work for it, ask for donations or work on fund raisers. Hint. In this case, CotoCAN would have to fend for itself.

If the cable company or the telephone company fail to deliver on the services, we do not wait to see if at the end of the year we renew the contract, as the GM would suggest. Instead, we simply let them know why we do not like their work and have them explain themselves, or simply fire them.

Come to thing of it, if we see the Coto budget as just another family budget, that may not be so bad, right?

When Service Providers Prepare Your Budget and Spend Your Money: The Request for Input memo addressed to not Coto Residents and Non-delegates includes the following Tax and Spend item:

Improve Gate Access Control and Traffic Patrol: Reduce personnel hours for manned gates.

Translation: Take away the labor content from the “security component” to increase the margins for the principals, after all that is what the Estates and Villages are there for. So CZ Master can continue to build The Bridge.

Provide on-site CZ Master Association offices and staffing

Translation: Keystone is using your money to manage other properties and the best it can do is give you a useless GM. If you want yours managed, you need to hire either more people, or more consultants.

Wool Over My Money - The Request for Input memo addressed to not Coto Residents and Non-delegates includes the following Tax and Spend item:

Upgrade irrigation system and landscape to reduce water consumption.

Translation: For the last three years, Keystone has neglected to institute a water conservation program and a proactive preventative maintenance for the sprinkler system. Consequently a large portion of the sprinkler system is now non-functional. What has been happening is that new plants are installed only to die a few weeks later for lack of water. For those who want details, give us a call and we can take you to various places in Coto so you can see first hand what we are talking about.

What the BOD has done is mask Keystone’s incompetence by hiring landscaping consultants, who have focused on simply scheduling the landscaping companies, without anyone looking at the state of the sprinkler system, consequently deterioration occurs.

We have asked Keystone for a Test Procedure – so that Keystone personnel, landscaping committee members, district delegates or even concerned citizens can periodically test the system.

We have alerted CJ, several times, that there are various leaky service vales around Coto. In most cases, the problem is that that valves are used as outlets for day-to-day use by service providers. Because these are not designed for day to day use, the valves are not easy to completely shut off, and therefore that water simply flows freely.

So the issue is NOT to Upgrade irrigation system and landscape to reduce water consumption, but hold Keystone employees and the landscaping consultant’s feet to the fire and do some managing for a change!

Conclusion: Before any new program is started, Keystone has to go – they have shown to be totally incompetent. More so than Securitas

SECURITAS DOES NOT COMPUTE Something does not compute! Bob Varo implies that Securitas has done an acceptable job for Coto (we think otherwise and have written extensible on the subject for three years). “We have had a long and very good relationship with Securitas, but Universal came in with a very compelling offer and program that we felt we would have been remiss if we did not select them”, Bob Varo, President’s Letter August 2005.

At the same time, we are told that the GM has received proposals from:

UPS
Pacific Oaks Security
Guardsmark
Securitas
Allied Barton
Boyd & Associates

…And it gets better. An audit of these proposals, as supplied by the GM, failed to find a compelling offer and program from UPS – In fact, there was no compelling offer and program. Simply a collection of flyers from UPS and no proposals from other companies. Perhaps we should call NY Attorney General Jay Spitzer? You know, the one who brought down the insurance brokerage industry because of the payola associated with insurance proposal?

District Delegates and Alternate - Do you know who your District Delegate is and if there is an Alternate?.....District Delegates represent your subdivision on a variety of issues and casts your votes at the election of the Master Association Board of Directors” CJ Klug, CZ Master Newsletter 07-15-05

But just because it is your vote, some district delegates will refuse to tell you how they voted, just in case you ask.

And if district delegates editorialize when representing your interests, you will dropped from my “buddy” list.

Reducing Crime According to the GM - The GM describes how he recently met with the Sheriff’s Office Investigators concerning general law enforcement in Coto. His findings: “Cars are often broken into, not to steal the car, but to get exposed laptop computers or other valuables”. Armed with this newfound knowledge, his solution to reduce crime, items stored in your car should be out of sight….”

This compares to recommendations made by Lt Deck and Captain Elzig:

1. Awareness campaign – In the past, the CHP has volunteered to attend CZ Master Board meeting and discuss the issue with residents.

2. Visibility – simply having CH patrol car around, even if they are parked and non-one inside!

3. Coordinated communications – coordinate local law enforcement agencies, CZ BOD, “rent-a-cop” services and neighborhood watches.

However, Captain Elzig confirmed that although the CHP is the primary law enforcement body in California and has the most sophisticated data collection system, no one from the CZ Master BOD, nor a representative contacted her prior to terminating the contract.

The morale of the story? You get what you pay for? And the CZ is paying a lot for a new GM and getting nothing to show for!

Bad History of Gate Runners The CZ General Manager states that “Coto has a bad history of gate runners hitting or breaking off arm gates because they did not wait for the green light”. Our sources tell us that over 30% of these gate runners come from the Estates and Villages, but to date Securitas has yet to issue any citation that sticks,

WHAT CAN YOU BUY WITH ONE QUARTER MILLION DOLLARS PER YEAR?

QUESTION: What can you buy for 1/4 $million/year?

ANSWER: A landscaping consultant and a general manager

QUESTION: And what do they do for you?

ANSWER: They generate over 20 pages containing proposed rule changes that deal with such important items as New Guidelines For Saturday Landscape Committee Walks With District Delegates (Note that the GM is not required to attend), Fine Schedule, Fine Violation, Policy Regarding Roots and Branches and of course, subsidized use of the Sports Park for non monthly-dues paying CZ residents. If you do not know what this means, check your mail for a very important note from the CZ Board of Directors regarding Notification of Most Important Proposed Rule Changes dated August 3, 2005!

NOTE: They get to tell you what you are responsible for, NOT what THEY are responsible for.

Further, should you complain or editorialize, the GM will NOT talk to you unless it is to pick up his monthly pay check + bonus.

QUESTION: What about the water conservation Program and the Maxicom system? Who is managing it?

ANSWER: One is a landscaping consultant, NOT a water conservation specialist, and the other one? I forget!

QUESTION: Our children are getting ready to go back to school. What about pro-active traffic control and crime?

ANSWER: That is YOUR problem, not theirs That is why crime rate in Coto is higher than any neighboring community and traffic accidents have doubled every year since the BOD fired the CHP! Note that you are now starting to editorialize!

QUESTION: What about proposals to ban the most unethical use of a delegate and BOD seat simultaneously and the ban on cumulative voting?

ANSWER: You are obviously editorializing now. Refer to previous answer!

PROPOSALS TO BAN CZ BOD AND DISTRICT DELEGATE SEATS & CUMULATIVE VOTING - UPDATE

Given that traffic accidents have doubled every year since this board fired the CHP three years ago, that monthly dues have increased, landscaping in general, including the irrigation system are in a general state of dis-repair, that the preferred management method is the use highly expensive and ineffective consultants, a number of apparent cover ups and ethical lapses, we reported last month that two proposals have been advanced: To ban cumulative voting and to ban holding a position on the board of directors and a district delegate at the same time. Even when the General Manager confirmed that the amendment had been included in the July 2005 CZ BOD Agenda, the subject did not come up. No word as of yet on the ban on the ethically challenged practice of holding a board seat and a district delegate seat. Silence is golden!

Cumulative voting - although designed to protect the rights of minority interests, this board has consistently abused it and misused it - and the results cannot be more dramatic. From a yearly doubling of the accident rate, to pre-empt the election of an independent candidate to the board, the highly suspect appointment of an unknown entity as the new security company. Click here to follow a discussion for and against cumulative voting as id developed in the Coto Discussion Forum:

Ban on Holding a Position on the CZ Board of Directors and District Delegate simultaneously - The archaic electoral process used to manage the CZ Master Association is a representative form of government. Each district elects a delegate based on a majority of votes. The delegates can then elect the Board of Directors. In the past, the members of the BOD vowed that if elected, they would not serve on the board AND as delegates, as this was highly unethical, since they could not only votes for themselves, but also derail a recall if one was necessary. The process is so corrupt that certain district delegates have even refused to disclose to their own constituents how they voted in the last election, even though they are supposed to be representing these same constituents! - Click here to follow a discussion for and against the ban on holding two positions.

LYLE SCHLIEDER APPOINTED TO CZ BOARD FOR 1-YEAR TERM

On Thursday, July 14th the CZ Master Association Board unanimously appointed Lyle Schlieder, long-time resident and former board member, to complete the remaining term of this year, which was vacated by Sean Larkin, who has moved out of the area. Lyle's term will run until May 2006, at which time he has the option of running for a new two year term in 2006. So reads the announcement posted on the CZ website immediately after the CZ BOD meeting.

But of course, in CZ tradition, this is not news to CotoBuzz readers, as we announced Lyle's selection in the July issue of CotoBuzz, weeks before the formal announcement. Of course this is not to brag that we can get the timely story, rather it is a sad commentary that days earlier the CZ General Manager sends out invitations for volunteers to replace Sean Larkin's Hit and Run. At the same time, he confirms in writing that a selection has NOT been made, whereas CotoBuzz readers know otherwise. The only conclusion is that the General Manager is a willing participant in a cover up, or is so ignorant of Coto affairs, that he should be paying CZ residents for his lack of services.

Bob Varo states that his selection is the right, because his criteria is met "..he is a delegate, continuously attends board meetings and he volunteered". CotoBuzz has gone on record stating that we are willing to give Lyle the benefit of the doubt, but he has left little doubt: Assuming that he is willing to go along with a ploy to pre-empt an independent candidate who is not a delegate, who does not share the same objectives as the current BOD, and accept his appointment, it still does not explain his going along with the BOD rather strange process used to select the Midnight Raiders, given his alleged extensive procurement experience. We now do not have ANY doubt - the ball is on Lyle's court!

Discussion on a Ban on Holding a Position on the CZ Board of Directors and District Delegate Simultaneously:

Reader - Delegates should even be ENCOURAGED to run for the Board. By being delegates they have shown interest in their local government. What should not be allowed is delegates not resigning this position if and when elected to the Board. There is certainly precedence to this in our national elections. I FURTHER AGREE. Let's not get too emotional on this.

COTOBUZZ - You are absolutely right. Like you, we applaud anyone who volunteers to make our community better. And in general, there is nothing inherently wrong with volunteers trying to do as much as possible. When a person is a district delegate and holds a position on the board of directors, they consciously decide (at least this is what we would expect) to proceed knowing full well that they will not be able to please everyone, and will be exposed to personal abuse.

What is wrong is that like it or not, the CZ Board is our local governing body with authority to tax and spend with impunity. Further, the board has legal (forget about ethical) powers that rival any banana republic’s dictator.

Any functional governing body should be accountable, transparent, always ethical and conscious of built in checks and balances. All of which are missing from the current board. Power corrupts, Absolute power corrupts absolutely! We simply refuse to be held hostage by a small minority with questionable motives, questionable ethics, lack of leadership and management skills and most importantly, focused on MBC (Management By Click) and lack of accountability.

Like you, we do not propose looking at these issues emotionally, but rather looks at the facts and react accordingly.

Discussion of merits of passing cumulative voting:

Reader: Hey, Buzz. In my opinion, your proposal would not advance, but rather harm, the interests of minority groups seeking representation on the board. Cumulative voting is a mechanism that prevents groups holding a majority of the votes (e.g., 51%) from capturing ALL of the seats. For example, if three seats are up for election, a minority holding at least 34% of the votes could cast all of them for one candidate and make sure they got at least one seat. Why would you want to change that?

Reader2 - We just had five Board Members, one of whom resigned a week after the election serve as Delegates voting for themselves and by extension for their crazy schemes, to cheat the one candidate who ran against the three out of a Board seat. The current system is sleazy, rotten and corrupt and should be ended in favor of direct popular elections. My Delegate for Canyon Estates, Bob Curran will not reveal to me who he should be responsible to (if he is supposed to be “representing me” ) how he voted in the last election. That tells me that I don’t need Anyone and I repeat Anyone speaking or voting for me. We have soldiers dying in Iraq to bring democracy to those people when we do not have democracy in Coto. The Delegate System with 26 people voting, of which 5 were existing Board Members who used cumulative voting to keep themselves in office, has resulted in the most ineffective, incompetent CZ Board ever seated in the history of Coto. There is something very wrong with this picture

COTOBUZ: Your argument supports our reasoning for promoting the amendment. Namely, we live in a Plan B world. Consequently, a small minority has a strangle hold on the affairs of the association, allowing them to make questionable decisions, with no accountability.

The major battle we are waging is that of resident apathy. Since this new minority has taken control of the CZ BOD, apathy has increased, as measured by the number of individuals willing to run for vacant slots on the board. After all, why bother if the small minority is fully in control.

Although we do not expect the amendment to pass soon, we are confident that eventually the silent majority will be fed up status quo and make a clean sweep.

Reader: My e-mail was not an "argument," but rather an accurate statement of fact, to wit, that cumulative voting is generally GOOD for, and in the best interests of, a minority.

Evidently, you take this a step further, by suggesting that cumulative voting is SO GOOD for a minority that it allows them to assert complete control. Your assertion is mistaken. Generally, cumulative voting allows a minority group to elect representatives in PROPORTION to their support (as long as their support is above a certain threshold, e.g., 1/3 in the case of 3 seats open for election). If you think about it, a minority could never use cumulative voting to elect ALL open seats in an election.

Perhaps your attack on cumulative voting is, in truth, misdirected dissatisfaction over the results of the last election. If so, then your real targets should be (1) the mechanism of representative elections (as Joe Morabito suggests in his separate response), and (2) resident apathy (as your last email acknowledges).

As a practical matter, I don't think the representative election mechanism (i.e., delegates) CAN be changed, because I believe it would require an amendment to our CC&Rs and the consent of every homeowner.

As to your complaint regarding apathy, there is simply no merit to challenging the last election on the (unprovable) grounds that there exists some "silent majority" that didn't bother to vote, but would have voted otherwise. At every level, the political process is controlled by those who care enough to be engaged in it. In a pluralistic society, government is influenced most heavily by those who care the most. That's not improper. It's our political system, which does not require anyone to vote or get involved if they don't feel like it. Of course, even those who didn't care enough to get involved or vote in an election are obliged to abide by its outcome.

To be sure, it is your prerogative to try to mobilize a silent majority (if it exists) and/or to combat apathy. Any such effort is laudable, and I commend the energy you expend to bring about the change you think is necessary. If you succeed in mobilizing some silent majority, then you'll bring about the changes you seek. If you fail, though, we may have to conclude that the "apathy" (or lack of participation) we see actually reflects a general satisfaction with the current state of affairs.

COTOBUZZ: Indeed - this process is REALLY BAD for the majority of Coto residents. Consider that a minority of roughly 0.5% is making (questionable, fiscally irresponsible and unethical at best) decisions on how to spend roughly $10,000,000.00 per year. Power corrupts, Absolute power corrupts absolutely! We simply refuse to be held hostage by a small minority with questionable motives, questionable ethics, lack of leadership and management skills and most importantly, focused on MBC (Management By Click) and lack of accountability.

You seem to forget that we live in a Plan B World: In this case, BOD members are also district delegates AND they are like minded. Widespread apathy allows them to become district delegates by simply voting for themselves district delegates and for themselves as board members - that is, support threshold is generally something equal to or greater than one vote.

Your statement " a minority could never use cumulative voting to elect ALL open seats in an election" uses fallacious reasoning. See above. Fallacious is also your statement "...there is simply no merit to challenging the last election on the (unprovable) grounds that there exists some silent majority." and so is your conclusion "... If you fail, though, we may have to conclude that the "apathy" (or lack of participation) we see actually reflects a general satisfaction with state of affairs.

CALLS FOR CZ MASTER GM RESIGNATION INTENSIFY

Lately we have seen an increase in calls for the new CZ GM to resign or be terminated. Following is a sampling of various messages posted in the Coto Discussion Forum:

A. CJ: As someone who has worked in a service business for 25 years and who has owned one for 15 years, I thought I would pass on to you some very good rules concerning customer service. I can’t wait for Keystone Pacific to provide you with training though that should be happening. And, I can’t count on the Sunshine Boys who don’t even understand their fiduciary responsibility as CZ Board Members to provide you with any positive direction, so as a Shareholder/Owner of CZ with very high service expectations, I thought I would tell you exactly what we tell our employees as follows:

1. Never ignore the customer even if he/she is not so pleasant to deal with. Provide answers to the questions you are asked and as quickly as possible and/or provide a timeframe when the answers can be provided.

2.      The customer is always right even when he/she is wrong, so act accordingly.
3.      Never respond to a customer sarcastically or in a joking manner if the customer is irate.
4.      If you make a mistake, admit it, apologize and solve the problem.
5.      Treat every customer like he/she is your only customer.
6.      Never complain about your workload to a customer.
7.      Never say No to a customer even when the answer is No. Use positive words instead to get the message across.
8.      Always remain calm no matter what is said to you by the customer. Never raise your voice to a customer.
9.      Maintain a positive phone/e-mail voice at all times. Customers can hear tone. Actually smile while talking to a customer over the phone. It will come across.

10. Be careful about e-mail. Words are very powerful. And, e-mail can and will be forwarded. So, use e-mail to accomplish positive correspondence with the customer.

11. Most important, always remember that clients and customers make your mortgage and rent payments. They put food on your table, so act accordingly. Thank the customer for the opportunity to serve him/her.

If you follow these simple rules, you will succeed with CZ Members. If you don’t, you will fail. It really is pretty simple. Right now, I would say you are failing because you are not following these rules. Either you are a real grouchy crank and/or you are following directions from the Sunshine Boys to ignore CZ customer neither of which positions you very well or Keystone Pacific since you are their employee.

B. Our experience to date with the new GM is that going to him for answers is like going to a dummy without a Ventriloquist, a total waste of time.

We doubt that the new GM visits Coto at any time outside board meetings.

Suggestions - simply go to the board, or other Keystone employees and forget the new GM

C. Mr. Klug, thank you for your response to my email of July 6, 2005. I guess that I did not phrase my question to you correctly because you failed to respond to the direct question that I asked you. I asked the following: "having been in your new position in Coto now for several months, I would like to know what YOUR position is on the lack of traffic enforcement in Coto de Caza." I know what the Board of Director's position has been and that we have been promised for well over a year a resolve to the issue of traffic enforcement with no results. Regardless of whether HOA's receive their fair share of traffic enforcement or not from our taxes, I asked what your position is? Do you think that there is a traffic problem in Coto de Caza and have your voiced your concern to the BOD? Do you have a resolve for the flagrant disregard for traffic laws by drivers in Coto de Caza and have you made suggestions to the BOD?

I once again invite you and Mr. Varo to join me in a morning walk around Coto de Caza and view what I see as a pedestrian. If you can spend time with delegates viewing landscape issues, then I would hope that you could spend time with a resident on traffic issues! <COTOBUZZ Comment: We have not seen Mr. Klug anywhere around Coto, other than during board meetings>

Since CZ Master seems to be developing a program of hiring "consultants" to address issues that exist in Coto de Caza and then suggest a solution to remedy the issues, how about hiring a consultant. There seems to be plenty of money in the CZ Master budget to accommodate everything except the CHP.

I closed my previous email to you "requesting your involvement to take a proactive stance to reduce the traffic issues here." I am closing this email with the same request and the hope that your will respond to the direct questions that I am asking you.

C. I have other issues with the GM-this just isn't one of them (Yearly doubling of traffic accident rate since the CZ BOD terminated the CHP contract.

D. What is really sad is that CJ Klug was hired by the CZ BOD, according to Bob Varo Because “Keystone does not know how to hire the right people”. We are afraid to ask what the wrong people may look like

COTO TRAFFIC ACCIDENT 2H2005 UPDATE

As predicted, despite the cosmetic actions taken so far (refer to Reducing Crime according to the GM) by the current board, the traffic accident rate continue to double every year since the board terminated the contract with CHP without an advance notice and without a baseline to judge effect of their most questionable decision.

YEAR 2002

2003

2004

H2Q205

ACCIDENTS 15

87%

PERCENTAGE 0%

27%

47%

73%

47%

source: CHP, July 2005 - Official keepers of accident data for the State of California

2006 Budget Preparation: Response to Request For Input - prepared by Hillsboro District Delegate

Vision Statement: There are various problems with the proposed vision statement contained in the July 15^th request for input memo. Reads as follows:

Keep Coto de Caza the Premier Residential Community in Orange County by enhancing the environment, providing high levels of service and fostering a sense of community.

A) Process

Having a proposed vision statement without an introspective piece is very much like building a castle without a foundation. This introspective piece should identify the strengths, weaknesses, opportunities, threats and trends for the organization.

Or as management guru Peter Drucker recommends, the organization must answer at least the following four questions prior to finalizing the vision statement:

1. Who is our customer? – We assert that the customer is a monthly dues-paying resident of the CZ Master organization. Not the Estates, Villages or CotoCAN

2. What does the customer value? – We assert the customer values security, environment, accountability & transparency, collaboration, diversity. In that order.

3. What are our results? – Traffic Accident rates have double every year since the board decided to fire the CHP. Irrigation system is at an all time level of dis-repair. Plants are replaced, yet die shortly thereafter due to improper watering and care.

4. What is our plan? – The million dollar question!

B) Scope

The purpose of CZ Master Association is to ensure that the Common Areas and Common Facilities are maintained in an attractive manner and available for the enjoyment of all members. As members of the Association, we all share in the future costs of maintaining these Common Areas and in covering the costs involved for administration of a large Community Association.

That is, instead of focusing on customer values, the proposed vision statement over-reaches to provide the board with an excuse to spend funds on non-community related matters (Estates, Villages and CotoCAN for example)

C) More Than a Matter of Semantics

The American Heritage® Dictionary of the English Language, Fourth Edition defines community as A group of people living in the same locality and under the same government.

It is clear that the proposed vision statement definition for community is the inclusion of the Estates, Villages and other non-paying entities, which by definition are not part of the CZ Master Association customer

D) Walking the Talk

As mentioned before, for any vision statement to be meaningful and not just another slogan, it must be valued-based, goals should shared goals, and the execution must be consistent and in support of that mission.

Pretending that the current board’s actions foster a sense of community is ludicrous. First cumulative voting is used to get a seat at the table and then systematically destroy the Association as other board members resign, or are pushed off, to be replaced by like-minded nominees of the rule thy neighbor crowd. A perfect storm for on going conflict, chaos, and commotion, making the recent Midnight Raiders (aka as Universal Protection Services) raid on Securitas employees, prior to the board even announcing that a change had been made, and without a transitional plan in place, seem tame by comparison.

The current board came to power using non-homeowner and self described community activist, Paul Young. In fact, even though he has not even lived in Coto for years, he is still listed in the CZ Master website as Chairman of Delegate and Others Group, while numerous other residents who have volunteered to various committees have not been locked out, in most instances, without even an explanation! We are fairly certain that this type of management by clique is certainly NOT fostering a sense of community.

All board members are also delegates. For Law and Order fans, although legal, this is not necessarily ethical. This is simply a great conflict of interest, and certainly not conducive to enhancing a sense of community

Most recently, the convenient resignation of Sean Larkin days after the election results were announced, effectively kept out the only independent candidate running for a board seat. Even though most concerned residents knew that a like-minded candidate had already been selected, the general manager went to the association’s expense to send out an invitation to residents asking for volunteers for the open seat created by Larkin’s convenient resignation. At that time the GM told is in writing that no replacement had been selected. In this case the GM is either aiding and abetting in a conspiracy to cover up Larkin’s Hit and Run, or he is simply totally ignorant of the day-to-day association affairs, which he is top be taking care of. . In any case, we ask: Is this conducive to creating a sense of community? Not to speak of the competence of the CZ GM!

Budget

The characterization of the association budget process as involving “the same challenges of a family budget….” is an extreme-oversimplification and shows lack of understanding of how to run a $10 million/year non-profit corporation.

The statement: “Increases in assessments are always controversial so if there are offsetting savings or services that can be reduced or eliminated, that will increase the chances for inclusion in the preliminary budget”, is further evidence of our assertion. Given the number of consultants hired by the current BOD and special interest groups waiting for a handout from the CZ Master Association, it does not take a NASA scientist to conclude that resident’s interest will not rate too high if this recommendation is followed.

Further, the assertion that “….where annual increases in the CPI must be taken into account by increasing revenue or decreasing services” is fallacious, as there are other alternatives such as “being fiscally responsible” and having competent management, etc.

We recommend that the ALL current suggested budget goals are scrapped, with the exception of item one: Operate within a balanced budget. There is a number of reasons for such a strong statement. We will provide examples below, and provide suggested goals, and expand on others at your request.

Upgrade irrigation system and landscape to reduce water consumption.

For the last three years, Keystone has neglected to manage the Maxicom system, associated water conservation program and a proactive preventative maintenance for the sprinkler system. Consequently a large portion of the sprinkler system is now non-functional. What has been happening is that shortly after replacing new plants, they die a few weeks later for lack of water and/or maintenance. Routinely, we have been shutting off free running valves and have told CJ, and other Keystone employees numerous times of this most obvious water waste. No response to date.

So the issue is NOT to Upgrade irrigation system and landscape to reduce water consumption, but hold Keystone employees and the landscaping consultant’s feet to the fire and do some managing.

Improve Communications with the Board, Delegates, staff and members.

Clear hypocritical statement when the General Manage does not respond to my multiple requests and furthers asks me to stop communicating with him. I should point our that I have volunteered for a number of committees over the last three years. Not once have I received a notice of acceptance or rejection by either Keystone, the board or any member of the boards cliques.

Recommended Objectives

1. Active Promotion of Security Committee to reduce traffic accident rate within Coto to less than 10 per year by:

Communication

The committee coordinates communication between the third party security companies, CHP (official owner of all traffic accident data), the Sheriff and other law enforcement agencies, the Board, residents and neighborhood watch organizations.

Community Awareness

Actively invites the CHP and other law enforcement agencies to present to resident and the board the latest issues associated with law enforcement .

Monitoring

Monitors monthly traffic accident data and generates corrective action requests.

Develops Service Level Agreement (SLA) and metric system and problem resolution process. Monitors security company and issues corrective action requests. Failure to resolve such requests, constitutes default of SLA and may impose penalties and/or terminate the service provider.

Active Promotion of Audit Committee to ensure service provided is cost efficient

The current GM has stated in writing that the current accountability system used by Keystone is to simply rely on contract renewal: If the contract is renewed then the service provided is acceptable. If it is terminated is not. This practice is not only naïve, but also fiscally irresponsible.

The audit committee will develop SLA and metrics for all service providers, including Keystone. Then audits and monitors service providers, issuing a monthly report card along with any applicable corrective action requests. Failure to resolve such requests, constitutes default of SLA and may impose penalties and/or terminate the service provider.

Active Promotion of Continuous Improvement Committee

Looks at operational efficiency opportunities and recommends elimination of programs not directly supporting CZ Master Association resident’s

Clogged Klug’s Queue - CotoBuzz will be publishing a monthly list containing items the new CZ General Manager has failed to provide an acceptable response or take action on:

Provide the complete list of District Delegates that voted in and how they voted, the 2005-2006 CZ election.

Provide date when audited cumulative voting results and minutes can be audited

Take a position on whether it is fiscally responsible to publish a Newsletter AND keep subsidizing CotoVoice

Take a position on whether current approach to proactive traffic enforcement is ethically, fiscally and morally responsible.

State his position on whether the use of landscaping consultants (instead of having Keystone do the job) is fiscally responsible.

State a position on overall Coto Security Strategy (access control, traffic accidents, resident data confidentiality, transponder issues, etc.)

Prepare 2005-2006 CZ Master Goal and Objectives - see response to request for input

Propose Key Business Indicators to manage the association fiscally, ethically and transparently

Take a position on ethics associated with dual membership: in BOD and district delegates.

Report on status of amendments: Ban dual membership and cumulative voting and why cumulative voting was not in agenda in last BOD meeting, as he had promised.

Water mis-management – How is the Maxicom system being managed or not? Prepare Test Procedures so Keystone employees, district managers, consultants or concerned citizens can test a district's irrigation system. Extensive mater waste continues - and he "is investigating"

Position on subsidies to the Estates and the Villages

Disclose who knew what and when Mr. Larkin was resigning from his recently minted second term in the BOD

Disclose any conflict of interest associated with the selection of UPS to replace Securitas. Why he failed to supply the audit team with the "compelling offer" Bob Varo promised. Disclose why he did not provide the audit team with all the proposals he claimed had been received.

Disclose how many Keystone employees are scheduled to participate, in an ethically challenged manner, staffing the August Golf CotoCan Golf Tournament, at CZ resident's expense.

VIVA HEDONISM!

With page One headlines like “Viva Tequila” and the continued use of black humor by the Behind the Gates author “Since I am one of those who still has to work in order to pay for my daughter’s designer jeans and my wife’s make-up, we don’t jet off to the south of France for “the season.” Rather, we pack up our SUV and head down to Laguna Beach for a week on the ocean”, the CanyonLife 06-29-5 issue, continues to exult the virtues of hedonism.

Perhaps this is a legacy of the continued belief in evolution? You know, like the CZ Master BOD characterization of the traffic enforcement issue as evolution. Refer to Creation or Evolution?

PERHAPS THIS IS ONE OF THE DELAYS BOB VARO TALKS ABOUT? - THIS WAS RUN LAST MONTH, BEFORE WE BROKE THE STORY OF THE MIDNIGHT RAIDERS.

More Good CZ Money after Bad Transponder r Plan - “In an effort to improve security and minimize unauthorized entry into Coto de Caza, the CZ Master Association has began a program to re-validate all issued transponders” reads the justification used to throw more good CZ Money after bad:

1. The CZ Master Association has refused to even consider base lining the state of security within Coto de Caza. Rather, they fired the Security Director after he issued the State of Security Within Coto de Caza Whitepaper. So, how do we know if the new program is working?

2. The CZ Master Association has refused to interview persons intimately familiar with the launching of the original transponder program. As George Santayana said “Those who cannot learn from history are doomed to repeat it”

3. One of the major problems in the past has been the administration of the program – very much a Securitas’ responsibility. What provisions are being made to make Securitas accountable this time around?

4. Securitas record keeping leaves a lot to be desired. What makes anyone think they are ready to manage a new and improved transponder program?

5. What about the multiple passes issued to service providers and how does the new transponder program avoids the past pitfalls?

6. Major users of the Transponder Program are the Estates and the Villages. According to previous Security Director, they consume at least 30% of the Securitas resources to administer their use of transponders. Does the new program address this issue?

7. On and on and on….

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COTOBUZZ VISION - Fighting Coto Resident Apathy One Resident At a Time!

COTOBUZZ is a change agent to transform the historically confrontational, antagonistic Coto culture by maximizing resident involvement and facilitating communication between the board, residents and service providers, and eventually develop a sense of community and civic pride while maintaining the Coto Life Style we all have come to love.

Forward this newsletter to your Coto friends and neighbors. Ask them to sign up for their own copy (free) at www.cotobuzz.com You are receiving this newsletter because you have confirmed your subscription at www.cotobuzz.com, you are a CZ Master Association delegate, service provider or interested party. To cancel your subscription, contact:

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P.O. Box 154
Trabuco Canyon, CA 92678
fax/messages: 8153611721

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