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All systems go for contentious, first-ever, recall election in Laguna Woods Village
June 12th, 2009, 4:00 am · 18 Comments · posted by Teri Sforza, Register staff writer
Let the (messy) exercise in democracy begin!
In less than 10 days, information regarding the first (rather contentious, to put it mildly) recall election in the history of of Laguna Woods Village should land in the mailboxes of the 6,000 or so folks in United Mutual. (United is one of LWV’s homeowners associations.) Up for recall are four board members; folks should expect to see details by June 20.
The cost of this exercise in democracy: at least $38,500, but it could go as high as $121,000, harm the community’s reputation and distract officials from more important jobs, officials warn.
And the $68,000 question is….Will the man who pushed for the recall be recalled himself?! Only time will tell.
This whole thing came to pass after rebellious United board director Mike Curtis got fed up with how some of his fellow board members handle the community’s finances - and how they, in his humble opinion, kowtow to property manager Professional Community Management.
Curtis - who has been excoriated by some LWV’s powerhouses - is blazing mad about the $5.4 million of seniors’ money that PCM spent on employee incentives, which were a mystery to many for the better part of a decade.
After Curtis failed to get traction with his board colleagues re: trying to recoup incentive program payments from PCM - and as assessments were slated to rise another 4 percent - his troops sprang to action and gathered some 400 signatures to force a vote on the fate of the four board members - Lloyd Foster, Linda Wilson, Marty Rubin and Gail McNutly.
According to a press release (which we are thrilled PCM sent to us, as it’s our first formal communication in some time), target/United Board President Foster said, “This process already has - and will continue to - demand an enormous amount of time, effort and attention from this board, as well as our managing agent….This will preclude us from executing our regular duties and fiduciary responsibilities in the most constructive and effective manner.”
The board is concerned about the recall costing residents a significant amount of money, the press release says, and about “the potential negative public image of the entire Laguna Woods Village community.”
“As directors of the United Mutual Board, we are dedicated to the constructive support of the residents of Laguna Woods Village. The past two years of relentless attacks, allegations and name-calling by certain residents have had a profoundly adverse affect on our residents, their families and potential newcomers to our community,” Foster says in the release (which, if you’ve missed it in the above links, you can read in full by clicking here).
At Tuesday’s verrrry long and tense United board meeting was attorney Janet Powers of Fiore Racobs & Powers in Irvine. Powers has conducted more than 120 homeowner association recalls - doesn’t that make your head spin? - and was hired by LWV’s attorney, Hart, King, and Coldren based on this expertise.
When asked how much her services were costing the community, however, no answer was forthcoming, Curits says. (This is precisely the sort of thing that drives some folks in LWV nuts.)
In the press release, Foster (board president and recall target) vowed that the election will be fair and democratic, “to ensure that every United Mutual member gets the chance to vote, regardless of whether they favor or oppose the recall of the targeted directors.” The board is working with attorneys to determine proper steps and timing, and will announce details by June 20th or so.
“We believe that this will be the first time in the history of Laguna Woods Village that a recall election has been held,” said Foster in the release. “Therefore, we have no precedents to guide us, and we are proceeding with care to ensure that it is done correctly and can withstand scrutiny.”
Oh so many things can still happen:
- Signers of the recall petition can have their names removed if they have second thoughts, the attorneys said.
- The names and telephone numbers of those who signed are apparently making the rounds, and may be contacted by folks who support the targets of the recall.
- This makes Curtis and co. figure that, if names can be removed after the fact, they can be added as well - so they may gear up to collect more signatures.
- Some board members proposed a concurrent recall of Curtis, that darn troublemaker. We’ll see where that goes.
Curtis, by the way, is the guy who PCM tried to get fired from his job (after Curtis kept asking questions at board meetings, when, at least in PCM’s opinion, he should have been working). And Curtis was recently barred from the second floor of his own community center - his presence is allegedly threatening to ladies on the management company’s staff.
Oy! Never a dull moment in LWV. We watch eagerly as democracy takes its course.
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The United Board and PCM continue the lies that PCM did not skim millions from our associations for years, there’s no evidence been found, and that everything I say is unfounded. Yet, PCM’s Financial Manager and staff attorney agree with me, in writing – There was no board knowledge or approvals of millions in payouts, as much as $20,000 PER WEEK, from our treasuries for years. We want our money back!
Then there’s a claim by PCM and United directors that we’ve already been investigated by all sorts of agencies, including being audited by KPMG. Well, prove it. As a director, I am entitled to this information and want it. They will not provide it or provide anything. We want transparency!
In spite of the fact that the last two elections have averaged about $15,000 each, this board has allowed PCM to pump up the cost estimate for this recall to $121,000. PCM has no substantiation - nothing. This is exactly why these board members are being recalled! They’re in the hip pocket of PCM and doing all they can to protect them!
Malfeasance and incompetence are not required for a homeowners association recall. You don’t need these reasons for a recall. But, the charges are: The board is not trying to get our money back from PCM, and (up until this recall) the board continues to let 2010 assessments go up and out of control – blindly supporting PCM’s make-work projects.
On June 9th, one board member announced to the public “If there’s anybody interested in helping get those people’s names off the petition, please (call PCM). Time is of the essence, ah 597-4262. We might have a chance here to save our village further embarrassment and certainly a whole lot of money.” The following day our attorney issued a Cease and Desist letter to PCM and the Board, and also asked for equal time use of the cable television system. The law is clear, they cannot interfere with an election, tamper, or otherwise try to influence the vote. Also, those signing the petition, by signing, did not agree to be contacted, solicited, or intimidated.
These people are snakes ….
Teri left out that Mike is somehow forbidden to attend closed (executive session) meetings of his own board. How can that be legal? And he is not the first since Ray Barrett was forbidden to attend closed sessions after he was sumarily deposed as United board President a few years ago. For that matter, why was it Milt that told him he was deposed, as Ray was heading to attend the meeting. How did Milt come to have inside information prior to the meeting?
All of the above makes it eminently clear something is seriously amiss in Paradise. Thanks to Teri for the eye-openers.
They should recall a lot more board members here. The boards are elected to represent the residents here and help protect our property and assessments..Which they have not done. Some residents have found some facts of abuse of funds etc. and they are treated with total disrespect and even threatened with being thrown out of a meeting if they try to stand up to ask a question and the board members let this happen. Some board members abuse their powers and treat some residents with total disrespect. None of this would have happened if they would have examined the facts and corrected some the these problems instead of allowing the shuffling of funds and problems around.
If something is broken and not fixed properly it will only make the problems larger and more complex. So the boards have got us to this point of more problems and more money being spend that raises our assessments..This whole system here is broken and needs changing.
Why the recall in Laguna Woods? Just wait… they’ll die!
It is appalling that the United Board President announced at the United Board meeting a telephone number that signers of the recall petition could call to have their names removed. Does that mean that those who wish to have their names added to the recall petition may also use that telephone number to request that their names be added?
Of course, “spin” being what it is means PCM and the United Board would not inform people they may ADD names to a recall petition. That would allow people to express a point of view — gasp! horrors! — of course the further “spin” of “embarrassment” and such — is further subterfuge to cover past abuses of power and authority. Again, cost is unavoidable and using that to obfiscate the millions in “performance incentives” paid to a management company is appalling. Preventing an ELECTED director from his “absolute” right (that’s in the Corporations Code) to freely examine association records is yet another abuse of power and authority. I continue to be disgusted at the complete lack of conflict resolution skills at work here (and in most associations) but also disgusted at the apathy inherent in most associaitons. Wake up and smell the coffee! If you live in an association, pay attention to what’s happening because it affects your most impoortant asset — YOUR HOME. I wonder if PCM and the incumbent United Mutual board members appreciate the more you try to hide, the more someone is going to try to find out why. What’s also absent in PCM’s press release is the cost of NOT providing legally required information — an amount undoubtedly at least equal to the cost of a recall election.
One more thing — the unbelievable, unmitigated gall in trying to influence an election PLUS not providing equal access for all points of view — makes me wonder how associations get away with abusing their power and authority PLUS blatantly violating the Civil and Corporations Codes………waiting for board members to die because “it’s Laguna Woods” is one of many excuses to NOT protect your most important asset — YOUR HOME — apathy is one of the root causes of association abuses — the mentality is “no one cares so we can do what we want” — not that the Laguna Woods demographic skews younger but that is not a reason for apathy. Good luck, Mr. Curtis and supporters — I hope yoiu prevail!
Apparently not one member of the United Board is intelligent enough to really listen to what Mike Curtis is saying and to ask questions in spite of the fact that they can’t stand him. So instead of listening to the message, they want to kill the messenger.
Mr. Curtis knows very well why he was prohibited from visiting the second floor. The Register’s reporting is ridiculously biased in its narrative that PCM is evil and Curtis the wronged do-gooder. At the last Board meeting, residents batted Curtis about like a pinata. But you didn’t read about it here.
Mr. Curtis, why don’t you make a deal with PCM? You promise to resign if Milt Johns does. When was the last time the OC Register acknowledged all the hard-working LWV employees caught in the middle of this PR war? Ultimately, Curtis and Johns can be replaced, but there isn’t any other management company around that can take over such a huge enterprise as LWV on day 1, day 30 or even day 90.
GopNinja, I disagree with you on several of your comments. Who convinced you that there isn’t any other management company around that can take over such a huge enterprise as LWV on day 1, day 30 or even day 90?
That statement is very misleading and erroneous. There are many good management companies eager and willing to take over, the minute we request their services. The problem is which one do we hire? We certainly do not want another PCM or worse. Our boards will have to do their homework and check them out. Not such a big job, if our boards are sincere and diligent.
By the way, you don’t make deals with Milt Johns. He has a narcissistic personality. He thinks he is perfect and that everybody should worship him. He would never resign on his own, deal or no deal. The authorities will need to step in and take him away. The whole PCM management is like the mafia. If you’ve ever had to deal with the mafia, you know how hard it is to deal with PCM.
GopNinja, if you think no one could take over in 30 days, you are mistaken. It is not as if they would have to start from scratch either. The major work is contracted out. If PCM left, the first 30 days might be a little rocky, but not cataclysmic. After that, things would be running smoothly and with better accountability unless residents leave the replacement company in there for another 40 years.
GopNinja, I really like your idea. Mike Curtis can go, along with Milt Johns and Janet Price and 99% of the board members of United, Third and GRF. It’s time we get board members that are going to be responsible to the residents. PCM can stay as long as Jonhs and Price and maybe a few others from the top ranks are weeded out. I’ll even help them pack. One other thing, Johns needs to return the $5.4 million before he goes.
It is too bad that there are so many unhappy people here.
They should really move ASAP. If you ever attended a board meeting you would be able to see Mikes groupies as they never smile. I have to admire the boards patience as Mr. Curtis needs alot of attention. It does not matter what is being discussed his hand is up before anyone can finish with Point of Order Mr. President.. It is a wonder anything can get acomplished. He needs to be the center of attention at all times and thinks he knows the law. What is happening is that while so points might be valid it is time to move forward and not waste money on lawyers and lawsuits. This recall will be a huge expense to feed his ego. Mr Curtis would love to gain control of the board. Talk about power hungry.
Anyone who is unhappy here should move….
A man who hates as Curtis obviously does is to be pitied. However, the upset and frustration that comes with this kind of psychotic behavior invades our wonderful community more and more. Watchdog only fuels the fires of anger and upset. How very sad - perhaps these people who profess to ripping our community apart should sit back and take a look at what they are impacting. The wealth of loving, giving people - the organizations and clubs abound with activities for everyone - the talent is amazing - the thousands of volunteers who give of their time and energy to make this community the greatest in our country. Your power is only momentary - the majority of this community will stand together against you.
NF and Pat Wilkinson. Guess you both are PCM groupies. Mike is fighting for the rights of the residents and he’s continuously being harassed, put down, threatened, his rights denied, etc etc etc.
Some people who possibly are on the take, do not want things revealed. MIke Curtis is a major threat to them, because Mike is digging for the facts, the truth of what’s really going on.
This HOA is the biggest ripoff of any in this country. There are many horror stories of HOAs everywhere, but Leisure World (aka Laguna Woods Village) is the worst by far. And you want to defend this denial of residents’ rights, this dictatorship, this ripping off of residents? Are you in on one or more deals also?
TO LOUSKOGEN
Get real–you think this is like mafia country where everyone is on the take…you are all like Mike Curtis and need medication!
I voted for Mr. Curtis before I watched him in action at the board meetings..WHAT A MISTAKE… he does so much harm to this community by his antics and attention seeking behavior. It is all about him . He just wants everyone to pay court to him like he was someone of great importance.
If you are not happy here MOVE ASAP that is if you can sell your places with all this bad publicity,
I understand that you were banned from the 2nd flooor of the administraion building for harrassment and your intimidating appearance to the staff.
You proved that by the same harrassment to TrueBallot,the company hired to handle the counting of the ballots. They wanted to cancel their contract because of your contacting them and they felt threatened.
Mr. Curtis you GOT CAUGHT