Agenda 09 04 08

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1. Communication - PCM Style

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Agenda 09 04 08

  1. 1. LWV September 04, 2008 Residents Voice 9/4/8 Residents Voice 1
  2. 2. Communication The Process by which information is exchanged between individuals. 9/4/8 Residents Voice 2
  3. 3. Communication - PCM/Mutual Board Style By Conrad Grundke 9/4/8 Residents Voice 3
  4. 4. 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! 9/4/8 Residents Voice 4
  5. 5. So! Let’s Review LWV Communication! 9/4/8 Residents Voice 5
  6. 6. Phases of PCM Communication! 1. Completely open 2. Completely Hidden 3. Partial truths 4. Tell lies 9/4/8 Residents Voice 6
  7. 7. 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.” 9/4/8 Residents Voice 7
  8. 8. 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. 9/4/8 Residents Voice 8
  9. 9. 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. 9/4/8 Residents Voice 9
  10. 10. 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%. 9/4/8 Residents Voice 10
  11. 11. 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%. 9/4/8 Residents Voice 11
  12. 12. 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. 9/4/8 Residents Voice 12
  13. 13. 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. 9/4/8 Residents Voice 13
  14. 14. 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. 9/4/8 Residents Voice 14
  15. 15. Have You Heard! Can This Be True? 9/4/8 Residents Voice 15
  16. 16. Who, Where, What • Marina Pacifica Condos • Belmont Shore • Long Beach • Fired PCM two years ago • Realized a monthly savings of $10,000 9/4/8 Residents Voice 16
  17. 17. 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 9/4/8 Residents Voice 17
  18. 18. What That Would Mean! • Major Reduction in our Budgeted Assessment for our manors. 9/4/8 Residents Voice 18
  19. 19. Candidates 9/4/8 Residents Voice 19
  20. 20. How to pick „em! • Are they endorsed by the same people who got us where we are today? • Don‟t vote for them! 9/4/8 Residents Voice 20
  21. 21. The End 9/4/8 Residents Voice 21

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