Orange County Register

Here is the official word on the first-ever, contentious recall election which is now under way in Laguna Woods Village. (Read more about the hows and whys by clicking here.)
LAGUNA WOODS BOARD DISCUSSES RECALL PETITION AND ASSOCIATED EXPENSES; PLEDGES TO CARRY OUT A FAIR AND INCLUSIVE ELECTION

LAGUNA WOODS, Calif.-June 10, 2009-The United Mutual Board, a homeowners’ association in Laguna Woods Village, on Tuesday discussed an effort to recall four of its elected directors.

Since receiving the recall petition on June 1, the board has been informed by professional consultants that it could cost anywhere from $82,000 to $121,000 to conduct the recall vote. The board has no choice legally but to carry out the recall at this point, and voted for funding and process to carry it out.

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,” United Mutual Board President Lloyd Foster said in a statement read at an open meeting yesterday. “This will preclude us from executing our regular duties and fiduciary responsibilities in the most constructive and effective manner.”

The recall petition presented by Mr. Michael Curtis on June 1, 2009 was signed by 409 petitioners, just over the required 5%. The board is concerned about the recall costing residents a significant amount of money, and 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,” Said President Foster.

Elected to the board last fall, Curtis was the primary force behind the petition drive to gather the five percent of owner signatures needed for a recall vote. Besides Foster, the petition targets board members Linda Wilson, Marty Rubin and Gail McNulty for removal without cause. State law governing corporations, including mutual housing corporations, sets few restrictions on recalls, including who may be recalled without reasons by membership vote.

To run the recall election, the United Mutual Board has hired TrueBallot, a professional firm that administers elections nationwide. Foster said this step will ensure the security, accuracy, and efficiency of every ballot.

Foster vowed that the board would conduct the election fairly and democratically 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. He said the board is working with attorneys to determine the proper steps and timing for the election, and will announce details of the process and set out notice about the recall vote within 20 days of receiving the petitions.

“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. “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.”

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