Agenda 01 22 09
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1. Questions for 2009 Directors
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Agenda 01 22 09
- 1. LWV January 22, 2009 Residents Voice 1/22/09 Residents Voice 1
- 2. Questions for our Mutual Directors for the Year 2009 Conrad Grundke If program doesn’t start automatically – press f5 function key 1/22/09 Residents Voice 2
- 3. What are these ? • “Leisure World” • “Laguna Woods Village” 1/22/09 Residents Voice 3
- 4. Leisure World • A Corporation; –Dissolved in 1968 • William V March - Agent –Active 1982 • Heidi Cortese - Agent 1/22/09 Residents Voice 4
- 5. Laguna Woods Village • A Bank Account Name in Bank of America – It is NOT a corporation! 1/22/09 Residents Voice 5
- 6. • Corporations • Trust 1/22/09 Residents Voice 6
- 7. Corporations • Golden Rain Foundation of Laguna Woods – Active - 1962 – Agent Cris Trapp • Laguna Woods Mutual No. Fifty – Active – 1969 – Agent Cris Trapp • United Laguna Hills Mutual – Active – 1975 – Agent Cris Trapp • Third Laguna Hills Mutual – Active – 1970 – Agent Cris Trapp 1/22/09 Residents Voice 7
- 8. Trusts • Golden Rain Foundation Trust – The Trustee for all of our amenities. 1/22/09 Residents Voice 8
- 9. Original Purpose of the Trust • Ensure that Trust Monies are handled properly – Money can only be removed according to the Trust Agreements – Regulatory Agreement (HUD) is one of the controls • Why does United want to pay off HUD? 1/22/09 Residents Voice 9
- 10. Pertinent Questions ? • Were Trust Monies that were in the Trust in a BofA corporate account that was registered with the state as “Leisure World?” • Did our name change require us to move our Trust money from that account to a BofA account named “Laguna Woods Village?” 1/22/09 Residents Voice 10
- 11. LWV Bank Account • Is it a corporate account? • Who “owns” or “controls” this account? – GRF? – PCM? – Housing Mutual? – Other? 1/22/09 Residents Voice 11
- 12. Director Questions • “Leisure World” did business as a Corporation. – Is it necessary to create a corporation for “Laguna Woods Village? – When was the “Laguna Woods Village” name change registered with The Secretary of State? 1/22/09 Residents Voice 12
- 13. Director Questions • Where are the registered voting ballots showing who voted for the name change? – According to the CC&R’s, Articles of Corporation, and IRS, we are required to have 2/3 of the shareholders vote to make this change and there were less than 3000 shareholders who voted. – Did we update all of our corporate records to reflect this name change? 1/22/09 Residents Voice 13
- 14. Director Questions • There was an article in our community paper (Globe) describing how Ms Price saved the residents 31 million in federal & state taxes by changing our corporation from a 501 (C)3 to a 501 (C) 4. – Was KPMG involved in this change? – How much did PCM staff get via their incentive bonus program? 1/22/09 Residents Voice 14
- 15. Sional Community Management • Professional Community Management, Inc • (profes)Sional Community Management, Inc • The internet has several references to this name. 1/22/09 Residents Voice 15
- 16. Sional Community Management • Address: 23055 Paseo De Valencia, Laguna Hills • Contact Phone: (949) 597-4200 • Contact Name: Russ Disbro • Alt Business Name: Professional Community Mgmt 1/22/09 Residents Voice 16
- 17. Sional Community Management • Address: 24351 El Toro Rd, Laguna Hills • Contact Phone: (949) 268-2271 • Contact Name: Milton Johns • Parent Company: Professional Community Mgmt of CA, Inc 1/22/09 Residents Voice 17
- 18. Sional Community Management • Address: 23081 Campo Verde, Aliso Viejo • Contact Phone: (949) 597-4206 • Contact Name: • Alt Business Name: Professional Community Mgmt of CA, Inc. 1/22/09 Residents Voice 18
- 19. Conclusions • The document records defining our Mutuals are out of date and could lead to opportunities for unscrupoulous individuals to take advantage of our unsupervised finances. • PCM is entrenched in numerous areas. Not all of which are a function of our community. 1/22/09 Residents Voice 19
- 20. Friday, Jan 23 • United Mutual Special Board Meeting –2:00 pm –Board Room 1/22/09 Residents Voice 20
- 21. The End 1/22/09 Residents Voice 21
Editor's Notes
- It is important that our Mutual Directors have the answers to questions that have a major impact on our community. By being able to answer these questions, the Directors can better manage our community in the best interest of the owners.On the heels of the state Supreme Court ( August 27, 2008) ruling ordering the Golden Rain Foundation, to allow residents full access to their community financial records, followed by Judge Ronald L. Baur’s ruling (January 5, 2009) on David Lyon’s move for an award of fees incurred in this litigation (Golden Rain Foundation Vs Franz ), answers to the following questions should be forthcoming from the Directors:1. When was the “Laguna Woods Village” name change registered with The Secretary of State?2.3. There was an article in our community paper (Globe) describing how Ms Price saved theresidents 31 million in federal & state taxes. Was KPMG involved in this change? How much did PCM staff get via their incentive bonus program?4. Who in our shareholders exempt status voted to change our 501 (C) 3 to 501 (C) 4 corporation? Musn’t the Shareholders in this community have a 2/3 vote to make any corporate changes.1. Was the corporate change for PCM’s advantage? (Reference the Lobbyist Donations).2. How did the Bank of America accept the bank account called “Laguna Woods Village?” The state of California requires you must present approved Secretary of State Articles of Incorporation documents before opening a new corporate account.3. Residents have requested IRS 990 document for the years 2005-2007. The shareholders could not find reports pertaining to any of the following: a). Paid incentive bonus plans for key for-profit employees. The residents did not get their assessments reduced and this incentive plan was not made public to the shareholders.b). Justification of PCM’s 83% increase in management compensation for years 2006-7. c). No open reporting of credit card and expense account abuse of approximately $250,000 thousand by PCM management group (10 people) for years 2006-7 of requested documents. Did the PCM employees who used those credit cards report their earning to the IRS. d). No 990 reporting of landscape/gardening division sales. As questions continue to crop up and instead of answering them, the Boards of Directors refuse to acknowledge the residents concerns. They lose sight of their responsibility of oversight and fail to monitor important areas of our corporate activity. It is time that the Directors initiate some of the questions that the owners are asking of PCM. Their lack of pertinent questions of PCM reflects an attitude that we cannot afford, especially in these times of corporate “rape” and economic hardship. When we see the disasters that are befalling all the corporations around us, we must acknowledge that it is not the corporations that create the problems, it is the people who are in charge that fail to do their fiduciary duty.In our case it is PCM and the Boards that must identify and resolve the problems.