Monday, February 8, 2010

New Information on Incentive Plan

Apparently the Truth Fairy decided to visit our house over the weekend. I opened the door and there inside the screen was a large envelope which contained some eight pages of brand spanking new documentation on the PCM incentive plan. You remember, this was the reward, not approved by any board or know by any but at most a tiny number of directors which awarded large chunks of our money to PCM executive staff. You might ask why were they rewarded and the response from PCM is that these stellar leaders saved us money and, in return, received rewards amounting to 30% of the sums saved.

The section I really, really enjoyed was the description of positions eliminated or left open which apparently reduced the service levels in all divisions and resulted in a savings of over $2.6 million dollars from 2000 to 2007. As I recall, from my industrial career, positions that were left open which did not result in a decrease in service level were eliminated. At an average savings of over $300,000 a year, just how many people were not needed by PCM? Why weren’t their positions eliminated? Were they kept on the books so that these savings would just keep on earning incentives year after year?

In another area, receiving 501(c)4 determination earned incentive payments in or from 1999, 2000, 2001, 2002, and 2004. Just how many trips to the well can one action take? From whence did the brilliant idea to file for 501(c)4 originate? Not from PCM staff, according to other documents—from the Village accountants, KPMG. And what happened to the savings, some $1.4 million? Well 30% of those funds were awarded to PCM executive staff with a large chunk of it going to Janet Price. What is 30% of $1.4 million you ask? $420,000 that PCM acknowledges awarding over those years. Janet herself apparently received some $250,000 in bonus money for just one year. Some might argue that filling out an application for 501(c)4 status as suggested by our accountant should be considered doing your job. Some of us remember a certain pride in doing your job well and being rewarded by (first) keeping your job, followed by earning relatively small increases on an annual basis. I guess we worked for the wrong companies, didn’t we?

But how much in the form of hidden funds did make their way from our pockets into the bank accounts of preferred PCM executives? Apparently the number was $3,195,484 between 2000 and 2007. And please remember that this money went to PCM executive staff, not the rank and file who mow your lawns and fix your leaky plumbing. And who awarded this money to PCM executives? Why that would be Milt Johns, without input or approval, from any director. He awarded this money to his executive staff.

As they say in television, stay tuned for coming attractions. We have not even begun to scratch the surface of this myriad of cost saving ideas. In the mean time, please think back to your working days and remember what sorts of actions you could have taken to save your company money. ABSOLUTELY every item on this document is work and savings that SHOULD HAVE BEEN DONE IN THE ORDINARY DAY TO DAY PERFORMANCE OF STAFF DUTIES.

Just how many “open positions” add up to $300,000? Who is getting paid at this level?

This document is the information given to James Matson, President of GRF, at his request for information about the Incentive Plan. It is a complete joke. Is this the information that finally led GRF to the tipping point and made them ask for Milt’s resignation? How long behind Milt are the remainder of the “executives”.

This information in its complete form is now in the hands of the IRS. I will disperse more detailed information from this document a little at a time in order that you can read and absorb the absurdity of it. This is a document the United Board does not want you to see and they violated confidentiality in order to sabotage the removal of the parties responsible; PCM and the Executive Staff at LWV.

How do I know this information is authentic? By the CONFIDENTIAL stamp at the bottom of every page. I wonder who voted to put this on every interested person’s doorstep. If you don’t have a copy and would like to have a copy, just let me know your e-mail address and I’ll be happy to send you the PDF file. No, Dave Blodgett and Ray Gros this is NOT on the LWV website.
Just a taste of the “justification” as written by Janet Price: “Positions eliminated, positions left open for some period of time, additional unbudgeted work absorbed, reduced by ANY ATTENDANT DECREASE IN SERVICE LEVELS……” emphasis is my own. This statement appears on every single page of the document and covers all the years “justified.”

MILT JOHNS AND ALL OF PCM MUST GO. NOW.

Sunday, February 7, 2010

What Lurks Beneath?

Goings On LWV February 7, 2010
What lurks beneath?

Milt Johns was asked to resign as General Manager of Laguna Woods Village. Since he learned of the request coming he has made tracks to imitate Chicken Little in his most frantic attempts to scare the members into thinking the whole place will crumble without him. He had conducted a hyperactive PR campaign by attending numerous coffee klatches and propaganda meetings to get the word out about what a hale fellow he is. The question each and every resident here in Laguna Woods Village should ask on Tuesday at the United Board meeting is this: WHY? What Lurks Beneath?

What has been discovered above and beyond the incentive plan and the general misbehavior of the past on the part of PCM? What frightens the United Board members so badly that the majority are willing to violate confidentiality? What is the big secret? What lurks beneath?

WHO is indispensable? What makes a person indispensable? History has told us that the only indispensable people are those who build an organization based on the cult of personality. When the leader makes ALL decisions the next echelon has no power and no understanding or fears to make a decision lest it be contrary to the wishes of the leader. Is this the case? Can you think of a time in history when you saw this happen? This is the situation in Laguna Woods Village.

How many residents who work for PCM in relatively menial positions are afraid? Afraid to express their opinions, afraid to ask questions, afraid to take any action. Aren’t these indications of cult behavior?

This is why it is vital to get rid of Milt and PCM entirely. Why is that important? They would have you believe we will crumble without them. WE WILL NOT CRUMBLE WITHOUT THEM. WE WOULD THRIVE. Any organization that cannot, will not, or refuses to change is already dying. We need fresh blood, fresh perspectives, fresh solutions and above all someone at the top who admits that the FIRST priority is the residents not the for-profit organization that pays their salary. If our management is unable to work under a new manager they do not deserve to be working at all. Let them find other jobs in other places.

What do the PCM promoters on United know? Are they afraid they will also be prosecuted for any crimes they have been aware of and have allowed? Are they so afraid of PCM and threats of lawsuits that they will defend Johns/PCM even to the point of a cover up that only begins with the mass dissemination of confidential information? Why is United still preventing the community from having full information? What minority United Board members are presently being treated as pariah and prevented from participating for fear of legal reprisal when whatever the truth is when it comes out? Ask yourself: What lurks beneath?

Why is PCM pretending the community will crumble? Is it because they CANNOT AFFORD to lose our business and let a full accounting and investigation of their behavior and management go forth? If only Johns is removed his underlings left behind working under Disbro, Disbro and Olsen will make it APPEAR the structure is dissolving and then in panic Johns would be reinstated. It’s all smoke and mirrors. Even an entire boro bridge can be made to disappear. That would be PCM’s ideal situation. They would then be back only stronger than ever.

Is United going to continue to turn a deaf ear and ostracize the minority on that board as they have in the past but for no cause and without due process? Perhaps the United Board members should consult individual lawyers to determine their personal liability. What lurks beneath?

ALL RESIDENTS/MEMBERS should go to the United board meeting on TUESDAY and express their demand that the United Board work FOR the membership NOT FOR PCM.
Keeping PCM is wrong. It is morally wrong. It is wrong to make that kind of business decision when the message is so obvious that PCM is doing more harm than good for this community. Forty years and there hasn’t even been a new bid for services. Despite what PCM would have you believe there are management companies and non-profit managers who are able, qualified and willing to take on the job; challenges and all. What lurks beneath?

Laguna Woods Village/Leisure World belongs to US. IT DOES NOT BELONG TO PCM. If you want to simply sell your home for a kiss and a bouquet of flowers to fawning admirers of Milt Johns then go ahead. Otherwise STAND UP and ask the question: WHAT LURKS BENEATH?

Monday, February 1, 2010

Water water everywhere

Goings On LWV February 2010

Sunday I took a little walk down to a couple water deluged sights. One stop was CDS 8 where the water had been supplied to the manors via garden hoses. PCM got in there and scurried around fast to get things cleared up according to residents in that CDS. But it isn’t all completely clean.

Claire Webb’s article says “it is PCM’s policy to use hoses – potable water grade hoses- designed specifically for carrying water that residents might use for cooking or drinking.” I suspect that line came directly out of the mouth of some PR person in the PCM offices after the fact. The reality is that garden hoses were used not the hoses specifically designated. PCM’s policy is baloney. It’s a matter of public health and if PCM decides not to comply with good practice then they will be looking elsewhere for people to mismanage. OF COURSE it’s PCM’s “POLICY” to use potable water hosing. But the reality is far different.

I took several photos yesterday. One is of a hose that is white with a blue stripe indicating that it is for use with potable water. The problem is….this hose is attached to a soil and cement encrusted hand sprinkler. The other end was open and lying loose in the soil of the garden. Right next to the hose in the same garden was a large blue construction wheel barrow with a bucket in it and one lying nearby. The wheelbarrow had the same cement substance in it that the hose nozzle had on it. PCM is using potable water hosing for garden use. Now the questions raises its head…..when PCM complies with their own policy of using hoses for potable water are they even using clean hosing or are they just using all hosing as garden hosing and then re-using it for potable water when needed? Seems that way from the photo. That’s kind of like reusing a catheter without sterilizing it. Let’s see….Milt Johns is in his early 50s so he probably still has a little immunity. I wonder how he’ll feel when he’s in his mid 80s and doesn’t have the same kind of immune power. Potable water hosing should be destroyed after use in a situation such as we experienced in CDS 8… NOT converted to use for the garden.

Some smartie pants using the screen name cincity talks about George Lopez saying they all drink from hoses. Hey, I did too when I was a little kid, right after my horse. I’m not 12 anymore either. We once paid our cousin to lick the sole of her shoe for a quarter and she did. Does that make it something that SHOULD be done? No, it was a stupid kid trick.

My next question is WHERE WAS THE CRACK DISASTER RELIEF CREW? They all showed up at CH5 for the victims of the fire on Bahia Blanca. I guess they need a nice tidy, dry, warm club house in order to function. Oh, and I forgot, one certain United director who is a big wig on that committee is better at leaving a scene than actually attending to a problem immediately. The disaster preparedness committee had JUST COMPLETED a major disaster drill. Guess they were all tired. DO NOT DEPEND ON THIS GROUP TO HELP YOU IN ANY CIRCUMSTANCES. YOU ARE ON YOUR OWN. PERIOD. It is just another way for PCM to keep residents busy while they carry on as usual awarding themselves monster sized bonuses from our pockets.

One resident who is an avid RV (recreational vehicle) traveler had this to say, “We have quite a number of RV dealers from whom we could have purchased water grade "white" hoses, as most RV'ers are aware of. In addition, an emergency notice on our TV network could have obtained dozens of hoses from our RV's in the storage area at no cost to the mutual. RV'ers are used to helping each other out and the donation of a water grade hose by a small percentage of RV's stored in our lots would be done in a couple of hours." GRF and PCM would rather harass those people by inspecting the interior of their vehicles and requiring an annual inspection.

Where was Milt when this was all going on? At home in Santa Barbara as his facebook page says is his home? Where was Jerry Storage? Where was Gene Hart? Where were any of the PCM executive level people? WHERE WERE ANY SUPERVISORS CAPABLE OF MAKING AN APPROPRIATE EMERGENCY DECISION? Why did our neighbors have to endure a week of this. Now their water heaters are also filled with this potentially contaminated water. How are they going to be cleaned?

The United Board is dead silent except for one man. Congratulations again to the United Board. Maybe you ought to take another look at your ethics statement.

Saturday, January 30, 2010

Don't drink the water!

This article is important for you to read. Does PCM even care if you drink contaminated water? Apparently not. Everything seems to be okay with Milt. Maybe he feels he has nothing left to lose.

http://www.ocregister.com/news/hoses-231434-water-residents.html

The Unted Board was notified of the unsafe conditions Sunday, January 24. The conditions, according to a United Director, are still not corrected.

Congratulations PCM on another job well done.

Congratulations to Gail McNulty, Marv Rosenhaft, Arlene Miller, Ron Beldner, Michelle Stanton, Marty Rubin, Linda Wilson and other United Directors notified of this reprehensible situation who have apparently done NOTHING to help protect their members.

Tuesday, January 19, 2010

New Letter from Corky and Noni Eley

Below is a letter from Corky and Noni Eley. Folks, PCM and GRF have to be replaced.

DATE: January 18, 2010

TO: Golden Rain Foundation Board
Third Laguna Hills Mutual Board
United Laguna Hills Mutual Board
Mutual Fifty Laguna Hills Mutual Board
All LWV Homeowners

RE: Violation of Corporate Code #8215 by LWV Boards and PCM.

Confusion!! Confusion!! Confusion!! This is the life style we bought into when we purchased a Cooperative or a Condominium in Leisure World/ Laguna Woods Village. The Governing Documents (Trust, Articles of Incorporation, Regulatory Agreements and CC&R’s) mean nothing to the Boards or PCM, the Managing Agent. Several written request have been made to LWV four Boards and PCM for open televised meetings on the interpretation of the Governing Documents and to whom these Governing Documents apply.

Golden Rain Foundation (GRF) for months has published paid advertisements each week in the Laguna Woods Globe with misleading information regarding the Governing Documents, Tax status, Corporation status and Banking procedures. Several of these ads are in violation of Corporation Code #8215.

PCM staff, as part of the Communication Plan, has created a monthly newsletter “United Laguna Hills Mutual-Village Snapshot” for LWV Boards. In the August Village Snapshot, under “Just the fact, Please,” the information staff gave the boards regarding the CC&R’s was incorrect. The December Village Snapshot, under the article “The Operating Budget,” was also Incorrect Information. GRF for the past 10 years has failed to deliver to each homeowner an Operating Budget as per the Amendment to the Trust, dated April 6, 1964. Perhaps staff should read the governing documents. In our opinion, Staff, by publishing false information in the Village Snapshot, which was delivered to the Board Members, has violated Corporate Code #8215.

Corporate code #8215 states: Any officers, directors, employees or agents of a corporation who do any of the following are liable jointly and severally for all the damages resulting there from to the corporation or any person injured thereby who relied thereupon or to both:

(a) Make, issue, deliver or publish any prospectus, report, circular, certificate, Financial statement, balance sheet, public notice or documents respecting the corporation OR its memberships, assets, liabilities, capital, dividends, business, earnings or accounts which is false in any material respect knowing it to be false, or participate in the making issuance, delivery or publication thereof with knowledge that the same is false in a material respect.
(b) Make or cause to be made in the books, minutes, records or accounts of a corporation and entry which is false in any material particular knowing such entry is false.
(c) Remove, erase, alter, or cancel any entry in any books or records of the corporation, with intent to deceive.

The latest announcement made in the Laguna Woods Globe, was “Laguna Woods Village gets New Cable Operator.” “Connexion Technology of North Carolina, beginning January 2010, will manage and operate the network, while GRF will still own the cable TV franchise and broadband network, The partnership will reduce GRF’s operating costs and capital expenses for the cable network, and savings will be passed on to residents, according to a statement released by the managing agent, PCM staff, on Tuesday, January 5, 2010. "In excess of a $1,000,000 a year," said Russ Ridgeway of expected savings. Russ Ridgeway said, "The current Broadband Staff will remain the same, although they will become Connexion Technology employees.”

Several questions need to be answered by GRF and PCM.

(1) How and Why was a partnership formed in the Laguna World Trust without the Homeowners approval?
(2) Is Connexion Technology a full partnership or a limited partnership?
(3) How much is Leisure World / Laguna Woods Village Cable TV worth?
(4) Was the $1,406,000 paid to GRF the full amount Connexion paid for the partnership?
(5) Broadband Staff are PCM’s employees and now they are going to be Connexion
Employees? Is Connexion a subsidiary of PCM?
(6) Who negotiated this 15 year contract/partnership?

It is time the four Boards (GRF, United, Third and Fifty) and PCM give the homeowners correct information on the governing documents, contracts or partnership the homeowners are responsible for. The homeowners, who pay the bills, should be fully informed as to what their obligation is and what has been sold, built, given or taken under these contracts or partnerships.

Sincerely yours,

Noni and Corkey Eley


Transmitted at the request of Noni and Corkey Eley.

Thursday, January 7, 2010

Shennanigans redux in the community center

This is an excellent article about more of the shenanigans coming out of the second floor of our community center. It's about rent. Who pays it, who doesn't, how much and more.

http://www.atwebo.com/cotobuzz/2009/LETTERS/CotoLETTERSOCRegister.htm

The big news that GRF was so excited about was the "partnering" with a company to take over the broadband services. Folks, start asking questions NOW. Why were no facts or figures presented? Why was this negotiated COMPLETELY IN SECRET? If Kurt Rahn and his fellow employees working in broadband now are "employees of Connexion Technologies" why haven't we seen an appropriate drop in salaries paid BY US? Since when does the company itself do due diligence? That's like the skunk looking for a foul odor and saying there is none. Me thinks the skunk is still in the halls of PCM/GRF AND THEY NEED TO GO NOW.

This morning's Globe contained another windy and clueless letter in it from the perennial contributor Dave Blodgett. It's too bad he is so far out of the loop that he has absolutely no idea what he's even saying anymore let alone who the people are he's talking about. I guess that when no longer in the public eye all the time and the need for attention is greater than accuracy one has to make one's own news even if it is blatantly wrong and without basis.

Blodgett makes about as much sense as the person who posts to the Globe and the Register as "luvithere" who on one hand rips people all the time for wanting transparency from the boards and consideration for what the owners/members actually want and on the other hand talks about how they are now going to stop making mortgage payments because they are angry with the bank. The article and comment are at http://www.ocregister.com/articles/short-225651-lenders-sales.html. It was posted on December 27, 2009.

Shades of Margo Bouer who threw the keys of the manor in and let it be foreclosed on and then sticking the membership with assessments in arrears. She's still omni present in the community even though she doesn't live here. Thanks to her and her little story all over the news about medical marajuana people are now going into the community center of Laguna Woods Village and asking where they can buy the pot. I have absolutely no objection to people who need it for medical reasons using it. I object strenuously to it being grown by a cooperative of residents in COMMUNITY GARDENS, having a little problem with theft of plants, and people coming into OUR community center and asking to buy weed. But it's okay....Margo is related by marriage to Erwin Stuller.

As much as things change things just don't change. My prediction for the election of GRF is that Souza, Foster and Stone will be elected to the board. Foster seems to have forgotten that he made a commitment to his United constituents to serve his term. Of course, he's just following the less than stellar example of folks like Jim "let's built a really big palace and not just a decent building for the golfers" Matson. Watch a few tapes of past meetings and watch Souza pound the desk, curse and set the spittle fly from his mouth as he casually spends as much as he possibly can OF YOUR MONEY. He also wants you to "change your own damn faucets. I did!" Well, Lar, we'd all like to have a decent community. One that runs well and looks good. But that begins with BASICS. Why don't you discuss the plumbing/epoxy debacle. Truthfully. And Mary Stone. She's going to be saved for an entire column. I just hope that this year they get rid of PCM and then go to work on getting rid of themselves.

Getting rid of PCM means getting rid of Milt Johns and his executive staff. It means the Disbro boys and their partner Olsen will have to go elsewhere to find pockets to suck money out of at will. I'm beginning to think there is some executive/administrative support staff that should probably take a fast hike, too, before the IRS comes in and has them all do the perp walk to the paddy wagons. Picture a few of these prizes in manacles.

If the links don't work simply copy and paste them to your browser.

Wednesday, January 6, 2010

a letter from Corky and Noni Eley

January 4, 2010

Janet Price, Finance Director
Milt Johns, General Manager
All LWV Board of Directors
LWV Homeowners

Re: No response to letters written regarding Leisure Worlds
Original Trust and amendments and Leisure Worlds/
Laguna Woods Village Management Contracts.

Happy New Year!! We certainly hope this New Year will
bring some drastic changes to Leisure World/Laguna Woods
Village. It is time the governing documents (Trust, Articles of
Incorporation, CC&R's and the By-Laws) are enforced and new
management contracts written. The homeowners of this
community deserve better management and advice than
they have been getting in the past.

Leisure Worlds Original Trust and the amendments to the
Trust have been violated by GRF and PCM by not delivering to
each homeowner a copy of the Operating Budget each year, as per
the amendment to the Trust dated April 6, 1964. The Trust must be
acknowledged and honored by GRF and PCM. The homeowners have
been kept in the dark as to how their money, land and assets
are being distributed. This is Senior Abuse at its worst and must
stop.

The thirty eight (38) board members of the four corporations
(GRF, United, Third and Fifty) at the beginning of each year are
given a copy of the Red Book. The Red Book contains the Operating
Budget, the Business Plan for each of the four corporations and the
Business Plan for each Division (Broadband Services, General
Management, Community Relations, Financial Services, Security,
Landscape, Recreation, Human Resources and Maintenance). Included
in the Red Book is the Golden Rain Foundation Trust Capital Reserve
Expenditures for equipment and facilities. The Capital Reserve
Expenditures reported in the 2010 Red Book for equipment and
facilities was reported as $8,931,350; however this amount is closer to
$10,000,000, as the Golf Starter Building cost of $4,886,300 was changed
in the December finance committee meeting to $5,500,000 and will
probably change again when construction begins. Remember Clubhouse 7?

The Management Contracts between PCM and the four corporations
should have been re-negotiated many years ago, as per
Article 5 (b). Article 5 has been written in each contract since 1996 and
the CPI has exceeded eight percent (8%) on GRF's operating budget for
several years with NO re-negotiations of the contracts. Why not?

Listed below is Article 5 of the above mentioned contracts. This
article has been included in each Management Contract since 1996.
The article number may be different on each contract but the statement
on Fee's is the same.

ARTICLE 5. Fee. Agent shall be paid, as its sole compensation for all services
performed hereunder, a fee payable in advance on the first day of each month in an
amount, exclusive of all surcharges, determined on the basis of the total number of
dwelling units in Owner under management by Agent as of the last day of the
preceding month as follows:
(a) Said fee shall consist of a monthly charge in the amount of ________, per
dwelling unit.
(b) Said fee shall be adjusted annually for each succeeding year by the
same percentage as the All Urban Consumer Price Index (CPI) of the United
States Bureau of Labor Statistics for the Los Angeles-Riverside, Orange County
Metropolitan Area. Such annual re-computation shall be based on the July to
June CPI increase or decrease, but not to exceed eight percent (8%). Should
the variation in the CPI exceed eight percent (8%), the fee set herein shall be
reopened automatically and subiect to re-negotiation. Such fee adjustments
shall be budgeted and become effective as of January 1 of the succeeding year.

Wake Up!! Every homeowner should purchase a bound
Red Book for $10.00 from the print shop on the first floor of the
Community Center Administration Building if they are interested in
knowing how the Operating Budget for 2010 of $94,970,566 is being
spent. This is your home and you must get informed and participate
before it's to late. The Red Book and the Management Contracts are
good starting points.


Sincerely yours,


Noni and Corkey Eley