The Process by which information
is exchanged between individuals.
9/4/8 Residents Voice 2
PCM/Mutual Board Style
9/4/8 Residents Voice 3
• It is the primary means of the Directors to
– 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?
– They have no incentive!
• The Directors
– They don‟t have the knowledge!
9/4/8 Residents Voice 4
Phases of PCM
1. Completely open – “It‟s all in the Red
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
• 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
• The Red Book has been changed from year
to year to prevent tracking many costs.
9/4/8 Residents Voice 8
• 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
• 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
Partial Truths - cont.
• What the GM Doesn‟t Tell You.
– There are two parts to the Management
1. The GRF Portion
– Which increased by 33% from $1.97 to $2.54 per
2. The Housing Mutual Portion
– Which increase 4-5% from $1.97
– The total fee increased by approximately
9/4/8 Residents Voice 11
• Paraphrased GM Statement: “PCM Had
nothing to do with the Management
Agreements. They were handled completely by
an independent attorney hired by United
• 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
• With all of the discrepancies that are being
discovered, the OWNERS have
justification in losing TRUST in our
• The lack of OVERSIGHT by our Boards is
the primary reason for our situation.
9/4/8 Residents Voice 13
• 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
9/4/8 Residents Voice 14
Have You Heard!
Can This Be True?
9/4/8 Residents Voice 15
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
• $10,000 savings for 510 manors
• $19.75 per manor per month
• If LWV saved $19.75/m/m that would
• $2,912,000 per year or a 3% savings
9/4/8 Residents Voice 17
What That Would Mean!
• Major Reduction in our Budgeted
Assessment for our manors.
9/4/8 Residents Voice 18