agenda 09 04 08
TRANSCRIPT
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Residents Voice 1
LWVSeptember 04,
2008Residents Voice
9/4/8
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Communication
The Process by which information is exchanged between individuals.
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Communication -
PCM/Mutual Board Style
ByConrad Grundke
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Why Open Communication?
• It is the primary means of the Directors to provide oversight!– How can a Director fulfill their fiduciary responsibility if
they do NOT know what PCM is doing?– Who is responsible to determine what the corporation
is up to?• PCM
– They have no incentive!• The Directors
– They don’t have the knowledge!
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Residents Voice 59/4/8
So! Let’s Review LWV
Communication!
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Phases of PCM Communication!
1. Completely open
2. Completely Hidden
3. Partial truths
4. Tell lies
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Phases of PCM Communication!
1. Completely open – “It’s all in the Red Book.”
2. Completely Hidden – “What they don’t know won’t hurt them.”
3. Partial truths – “Only tell them what we want them to know.”
4. Tell them lies – “The Boards will never know the difference anyhow.”
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Completely Open• They are completely open and transparent. Just
ask the General Manager or Directors!
• All “necessary” financial data, what they want you to know, can be found in the RED BOOK!
• The Red Book has been changed from year to year to prevent tracking many costs.
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Completely Hidden• Credit Cards
– GM & GRF Board would not acknowledge cards to United Board.
• Incentive plan (millions of dollars of bonuses) kept hidden for many years.
• PCM obtains General Contractor License.• Proposed Mulch Contract with Ware Corp.
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Partial Truths• What the GM Tells You.
– Credit Cards are for Emergency use only!– In a Globe Letter to the Editor the GM
referenced a “letter that was going around stating the Management Fee increased by 30% in 2009.”
– He said that the 30% increase was incorrect and that the Housing Mutual’s Fee only increased by 4-5%.
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Partial Truths - cont.• What the GM Doesn’t Tell You.
– There are two parts to the Management Fee!1. The GRF Portion
– Which increased by 33% from $1.97 to $2.54 per month.
2. The Housing Mutual Portion– Which increase 4-5% from $1.97
– The total fee increased by approximately 15%.
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Complete Lies• Paraphrased GM Statement: “PCM Had
nothing to do with the Management Agreements. They were handled completely by an independent attorney hired by United Mutual.”
• The 2/27/7 Signed Third Mutual Management Agreement was a document that was modified by someone other than the attorney.
• The Boards are aware of this and do not correct the GM’s statement.
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Conclusion• With all of the discrepancies that are being
discovered, the OWNERS have justification in losing TRUST in our Managing Agent.
• The lack of OVERSIGHT by our Boards is the primary reason for our situation.
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Solution• Remove all Directors who are aware of the
actions of the GM but take no action to bring those actions to light.
• Have PCM prepare a list of all costs that are not line items in the Red Book and the makeup of those costs.
• Create a financial oversight committee to review all of this Financial Data and GM plans.
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Have You Heard!Can This Be True?
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Who, Where, What
• Marina Pacifica Condos• Belmont Shore• Long Beach
• Fired PCM two years ago• Realized a monthly savings of $10,000
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So?
• $10,000 savings for 510 manors• Equals• $19.75 per manor per month
• If LWV saved $19.75/m/m that would • Equals• $2,912,000 per year or a 3% savings
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What That Would Mean!
• Major Reduction in our Budgeted Assessment for our manors.
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Candidates
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How to pick ‘em!
•Are they endorsed by the same people who got us
where we are today?
•Don’t vote for them!
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Residents Voice 219/4/8
The End