SCA deserves better. Lord knows we’re paying for it

Self-management is right.
Implementation is wrong.

Mr. Fox, Esq., has been hired to watch the chickens.
The family dog has been left alone with the owners’ cake.

The problems with the implementation of self-management will continue unless the system is changed. Changing Board members won’t make the difference.

The system has to be changed to include owner oversight, checks and balances, and guarantees that owner protections are firmly in place.

Tom Nissen frequently describes the implementation of self-management as “setting up a whole new company”.  In my view, that misunderstanding of SCA as an entity is a crucial part of the problem.

The things that are missing or are being done wrong (anything which is not done 100% for the benefit of the SCA homeowners is WRONG) are being done because the Board members erroneously think SCA should be set up like a company.

SCA is not a company.

  • It is a non-profit corporation incorporated under NRS chapter 82.
  • It is now an employer by virtue of becoming “self-managed”.
  • It is a mutual-benefit corporation that exists solely for the benefit of the owners.
  • It is fully funded by the owners.
  • It is a monopoly and membership is a requirement of ownership.

Why these distinctions are important to owners

Owners who own specified parcels of land (listed in SCA’s CC&Rs) must be in SCA. No owner can withdraw or pick a different competitor HOA. Every lot has the responsibility of paying an equal share of the cost of maintaining the common elements. When a lot is purchased, it carries with it deed restrictions which cannot be escaped. In exchange for agreeing to relinquish certain individual freedoms of choice as to how  owners can use their lots and the common areas, the CC&Rs and state law guarantee certain protections for owners and prospective purchasers to prevent their being sanctioned unfairly, lied to, or treated differently from other owners.

It is the Board’s job to make sure ALL owners comply with the deed restrictions and that ALL owners are protected from unfair enforcement actions.

The Board creates problems when:

  • it doesn’t provide ALL owners equal protection from its actions or the actions of its agents;
  • when it sanctions an individual owner without providing guaranteed due process protections;
  • when it tries to enforce policies or restrictions against a unit owner that don’t exist or are not applied equally to other owners;
  • when it usurps the enforcement authority of the Nevada Commission for Common-Interest Communities by sanctioning a unit owner for an alleged violation of NRS 116.

What is the Board’s enforcement job?

It is the Board’s responsibility to ensure that ALL owners comply with the deed restrictions as listed in SCA governing documents, i.e., CC&Rs, bylaws, and any rules and regulations formally adopted by the Board. The Board can only perform this enforcement function if it does so by giving an accused owner the due process protections guaranteed by law, i.e., notice, a hearing, a chance to correct, etc.

Limits on the power of the Board to sanction an Owner

Here are the governing provisions of the law and SCA governing documents that are intended to ensure that the Board protects owners and does not ever allow an owner to be sanctioned without these guaranteed protections having been provided.

  • Click here for NRS 116.31031:Power of executive board to impose fines and other sanctions for violations of governing documents; limitations; procedural requirements
  • Click here for NRS 116.31085.limitations on power of executive board to meet in executive session; procedure governing hearings on alleged violations; requirements concerning minutes of certain meetings.
  • Click here for SCA CC&Rs 7.4, Compliance and Enforcement on page 35.
  • Click here for SCA bylaws 3.26, Enforcement Procedures on page 20.
  • Click here for SCA bylaws 5.2, Deed Restriction Enforcement Committee on page 23.
  • Click here for SCA Board Resolution Establishing the Governing Documents Enforcement Policy and Process
There are more laws to protect owners, but you get the idea.

At SCA, the Board is supposed to serve as the appellate level when there is a charge that an owner has violated the governing documents. The Board is not supposed to initiate actions against owners directly.

First, the issue is handled by the Covenants (aka Deed Restrictions Enforcement) Committee that formally provides the first steps of the due process guaranteed to owners to protect them from being unfairly sanctioned for an alleged failure to comply with the CC&Rs.

If an owner is going to be sanctioned or fined for not following some rule after the Covenants Committee has investigated and heard the case, the owner can still appeal to the Board and can have an open hearing if requested. This system works great except when the Board of the GM decides to bypass it.

SCA governance must be the best fit to protect the owners’ interests, and under self-management, it is not.

SCA CC&Rs and bylaws are not optional.  The Board can’t legally cherry-pick which rules to enforce or make up rules that apply only to certain people. Yet, “on the advice of counsel”, it does.

If the Board claims that taking away an owner’s rights  was justified because it  was done “on the advice of counsel”, it is wrong.

A wrong opinion by the association attorney does not excuse the Board of culpability. It just shows that the Board  used owners’ money to pay a hired gun to mow an owner down.

Owner Oversight is essential, but lacking now

Rex Weddle’s chronic use of Board work groups is ill advised. It guarantees that the Board will not be as well-informed as it could be prior to making decisions affecting all SCA owners’ pocketbooks and lives.

It actually builds conflicts of interest into the system because it differentiates between individual directors access to information and authority. It does not use the best expertise that is freely available. It gives inappropriate power to the President to silence and punish political opponents. It sets does not permit the Board to be fully informed before making decisions. This causes unnecessary liability and risk to SCA and excessive cost to owners because appropriate executive controls are deficient or absent.

A committee structure is needed (NOT Board work groups) that utilizes resident expertise to prevent fraud, mistake and errors by management.

a.     Employment, organizational performance and compensation
b.     Communications and owner relations
c.     Records management and access to governance information
d.     Insurance, safety and risk management
e.     Legal Services
f.      Collections

Why didn’t SCA Board charter owner committees when self-managed Sun City Summerlin offers a successful model?

Apparently because the majority of the board thinks they know what’s best for owners without involving them. Rex Weddle thinks that as President he is the “decider” of who is “authorized” to work on a problem by appointing “Board work groups” and that directors with a different perspective can be excluded just on his say so.

I think differently.
Owners must speak for themselves.

I stand for owners’ rights.
That’s what got me kicked off the Board.
Not the load of crap they are shoveling about me making a profit.

SCA Board election choices are narrowed by design

My granddaughter is six now, but a while ago, she loved knock-knock jokes. Her favorite one was apropos of the SCA Board race.

  • Knock-knock.
  • Who’s there?
  • Broken pencil.
  • Broken pencil who?
  • Never mind. It’s pointless.

And yet, here I am. In Hawaii, but still knocking my head against the wall, trying to keep the SCA Board composition from being so blatantly manipulated.

I know no one will listen. I know that the sides have already been chosen. Lines have been drawn in the sand. Positions are entrenched.

It’s pointless. But I am still just OCD enough to need to put these points on the record – where they are out of reach of those who are distorting or concealing the official record for their own purposes.

Board candidates are disappeared

  • What happened to the two that applied but whose names were not released, but were just gone at the same time I was declared ineligible?
  • Why did Vickie Lisotto drop out?
  • Why didn’t more people apply who have voiced concerns about how self-management is being implemented without owners’ coming first?

Why won’t owners run for the Board:
Fear of facing a recall petition?

Apparently not.

Candidates Bob Burch and Aletta Waterhouse were themselves both subjects of the petitions signed by over 800 owners to remove them from the Board, but they decided to run again for another two-year term.

Amazing that over 800 owners signed petitions over a few Summer weeks to call for an election to remove Aletta Waterhouse and Bob Burch from the Board, but that did not deter them from running again.

Even more amazing. They were seemingly so untouched by the list of grievances in the petitions that they did not even deem those 800 owners’ complaints were worthy of being investigated or, if verified, addressed on their merits.

Not so amazing since they were completely secure in the fully-funded support of the GM and the attorney, they did not see any irony in how six directors voted in secret to remove me from my Board seat when ZERO owners signed a petition to call for my removal.

Did owners decide not to run because they saw what happened to a director that spoke her own mind?

From my perspective, the answer is obvious.

All the stops will be pulled out to protect a director who has closed ranks to march lockstep with the other Stepford directors to parrot the party line.

Step out of line, and you will be threatened. Privately berated and shunned. Publicly humiliated. Then you will be disappeared. No amount of owners’ money is too much to spend to force compliance to the party line. No rule of law. Total hard ball.

Would anyone bet a homeowner advocate could be effective on the SCA Board?

It is not a safe bet.

Not when six of the seven directors apparently can just secretly vote a dissident voice off the island. No trial. No finding. No process. No owner vote. Just goodbye. Can’t run again. Disappeared.

Not when Sun City Anthem has a blogger in Hedda Hopper’s McCarthy-era role to maintain a Black List.

…(to) actively oppose the election of any candidate who was tied to, or supported, the removal campaign.

Ask yourself…who’s spending owners’ money to control who sits on the Board?

Would Sandy Seddon have sicced attorney Adam Clarkson on a director who supported her getting paid double the market and wasn’t questioning her paying the CFO and Facilities Manager salaries that were also double the market rate?

Would President Rex Weddle have turned a blind eye to the GM using the attorney to authorize the expenditure of $90,000 to ensure that the recall election would fail and $40,000 – a combined $130,000 — to ensure that my removal by secret vote would succeed if our positions had been reversed?

Would he had let a dime of owners’ money be spent on the recall election if I, and not he, had been the subject of a recall petition?

How much would he have authorized expending of owners’ money  to pay the attorney to remove him if it were he, and not I, being falsely accused of making a profit from sitting on the Board?

Would attorney Adam Clarkson have assisted the GM to make a bogus threat of litigation against SCA, and a director individually, if they weren’t trying to silence that director who was questioning the legitimacy of both their actions while requesting information needed to make fully informed decisions?

Wouldn’t attorney Adam Clarkson also have profited from disappearing a demanding director to escape accounting for SCA owners’ being forced to expend

  • $300,000+ in 2017 legal fees, triple the budget
  • $38,000 in January 2018 legal fees alone to block 2018 changes to GM compensation
  • $90,000 to conduct the removal election which was solely caused by his and the GM’s decision to disempower the volunteer Election Committee?

 

 

How SCA agents need to be exposed like Harvey Weinstein was

And not how he exposed himself…

Last night during the Oscars, the comment,

If you can’t trust your agents, who can you trust?”

got a big laugh. Everyone knew that powerful Harvey Weinstein was brought down after decades of abusing his power broker position, as in:

You’ll never work in this town again!

Such threats, spoken or not, had long been sufficient to keep his “casting couch” an open secret.

And to keep those who were being hurt from being heard.

Same agent, different result

But uncomfortable laughter also came from many who knew that agents abuse clients in other subtler ways, such as by not protecting all their clients equally well thereby enabling a discriminatory system to endure and making big bucks while doing it.

Kevin Spacey was disappeared from the shooting of “All the money in the World” after being accused of sexual assault by some young men he was supposed to be mentoring. Scenes were reshot to put Christopher Plummer in to replace Spacey as the lead actor. Mark Wahlberg and Michelle Williams went back to work to do their parts again, but they were far from treated equally. A vast difference in compensation was negotiated by the same agency both of the two actors:

Mark Wahlberg paid $1.5M for film reshoot that earned Michelle Williams $1,000.

Wow. That seems so obviously not okay now, but it the not-too-distant past, it might have passed by unnoticed.  At least, for now, #MeToo and #TimesUp have created a cultural shift. The pendulum has swung to a point where such a disparity is worthy of comment.

Let’s hope SCA is able to move to such an awakening in my lifetime, and homeowners don’t have to face abuse at the hands of SCA’s agents.

Am I saying that some of SCA’s agents have been abusive?

Yes, actually I am saying that. And I’m saying it needs to stop now. Time’s up.

And I’m also saying that the current SCA Board, the current SCA legal counsel/debt collector and the current General Manager need to stop protecting themselves and each other.

Their job is to protect us. Homeowners should not have to spend one thin dime to be protected from them.

Why I am speaking up

Many Hollywood women came forward to expose Harvey Weinstein after one spoke up. I hope my story will resonate with homeowners, not just in Sun City Anthem, but also with homeowners in HOAs throughout Nevada and will inspire others to not be silent.

Bottom line:
SCA agents have had their hands in our pockets.

SCA’s former agents, without any of the prior Boards feeling a thing,  slipped a house or two that didn’t belong to them into their pants pocket, and one of them was mine.
Note: I’m not saying anything bad about prior SCA Board members. Not a single one ever took a dime. I’m sure of it.  And I don’t think they were negligent. There was so much chaos after the real estate market collapsed in 2008, no one knew the difference. I certainly wouldn’t have known or cared had not one of those stolen houses been directly under my care. 

Who cares now? 

When SCA replaced Red Rock in mid-2015, SCA went from the frying pan into the fire by hiring attorneys, Alessi & Koenig, to be our debt collectors. Then when I showed the Board and GM how bad these guys were, they did the unthinkable and made it worse by hiring a new debt collector to also be SCA’s corporate counsel instead of re-thinking the whole process.

OMG! David Alessi wasn’t licensed as an attorney in Nevada, was named in litigation by 500 of the 800 HOA foreclosures A&K did from 2011 to 2015 when SCA hired them. By 2016, they had morphed into another sham corporation, HOA Lawyers Group, before SCA finally let them go.

And still, SCA managed to get strapped into even a worse deal by contracting with the Clarkson Law Group to be both the debt collectors and corporate counsel.

In a stunning opening act of abusive overreach, Clarkson protected his business interests as well as those of SCA’s former agents by ordering me to recuse myself as a new Board member from ALL SCA collection matters.

Then, to protect the GM, he restricted my access to any SCA records and continues blocking access to GM compensation data to this day. He protected the Board majority from recall and caused the members to pay $85,000 for a CPA to bungle it.

Next, he used his corporate counsel magic powers to create a technical sleight of hand to knock me off the Board on false charges without a trial.

I’m the only attorney in this room. We’re in charge here. Shut up and get out.

How HOA foreclosures take money from all our pockets will be the next topic

A recent study showed that every home in that HOA loses an average of 1.7% of its value when there is a foreclosure by that HOA.

Next time I’ll break it down for you. I think you’ll see why Adam Clarkson, SCA’s current debt collector/legal counsel, is going to such extremes to try to silence me.

 

 

 

 

I’m sorry. We weren’t so lucky after all.

I have to take back what I said about the restaurant. I can’t recommend any one of the three bidders.

The process being used was so flawed that it virtually guarantees the same failures as SCA earned in the past.

To use an SNL metaphor, trusting the GM to get this right is like trusting Stevie Wonder to do my grandson’s bris.

Doing the wrong job really well so the right job can’t be done right

There’s no point in even giving you a summary of Tom Nissen’s and Forrest Quinn’s reports – even though they tried really, really hard, and they did a lot of fine work. It was just the wrong job, and doing it that way hijacked their job as Board members.

And worse, by them doing the wrong job, it makes it impossible for the Board as a whole to do its job right.

Remind me, what is the Board’s job?

The Board, working as a unit, sets policy, gives direction and defines financial limits and rules to control the GM. The GM then must design and manage the process for getting done what the Board, as a single entity, told her to do.

The Board must hold the GM accountable to get the job done right, not let her pick a few Board members to do her work or let her keep secret what she’s doing.

That’s why she gets the big, big, big bucks. To my way of thinking, she has a long way to go to prove that she’s worth it to the owners she is here to serve.

The Board must hold the GM accountable for building community consensus before she acts –  even though, as she often complains,

It’s really, really hard. After all, at the end of the day, some owners are just whiners.

The Board should have required the GM to do the job right by:

using a volunteer owner-oversight committee to guide a fair and open process and monitor her use of appropriate experts and/or neutral brokers.

(I know. I’ve been warned that I better be careful talking bad about La Principessa. Last time I criticized her performance on the restaurant, I got a cease & desist letter from her attorney, I mean from SCA’s, attorney that probably cost owner’s a couple grand.)

It makes me so sad I want a drink, and there’s no bar.

Really, it breaks my heart. I still really want a restaurant. Well, actually, I mostly want a great big, long bar with a great, long happy hour, but there are just way, way too many things wrong with the process to even consider proceeding to choose a vendor from this highly selective RFP.

There was too much done without the right people being involved and too much info given to the wrong people. Two Board members were doing the wrong job so they couldn’t do the right one. The GM wasn’t doing her job right.

The workshop really hyper-accentuated what has got to change around here. (I’m sorry. I really hope you don’t have to pay for Clarkson to write me another letter.)

Learn not to swallow poison pills

On the bright side, this is a very valuable lesson. The fatal flaws in this restaurant selection process are the same leadership failures and systemic deficiencies that will doom the viability of self-management, if we let it. But having identified the poison pills, we just need to pay attention. We don’t have to swallow them any more. And, if we do, as SCA’s attorney advises, it’ll be our own fault.

What do poison pills look like?

  • Confusion and blurred lines between the Board and GM roles
  • Board as a single entity not providing adequate direction and limits to GM
  • Board’s failure to hold GM accountable for developing processes to achieve cost-effective results
  • Using 2-member Board work groups or attorneys to propose policy or to do the GM’s job
  • Lack of transparency where it counts
  • Incentives that reward the wrong behavior
  • Relying on the wrong experts, e.g., attorneys everywhere and experts with the requisite skills nowhere
  • Board allowing the GM to block functional owner oversight through refusing to have a committee structure appropriate to self-management
  • Board President’s abuse of authority and attorney to make sure Board members are compliant or are disappeared
  • Cultural pattern of “In-groups” and “Out-groups”

 

How to cook our goose

SCA’s secret, but tried and true, recipe

Preparation time: 3 years to never

Chefs: 1 GM + 2-member Board work group handpicked by the king

Warning:
Product is very hot. Chefs are required by law to protect the secret sauce by making sure no one but the “authorized” chefs gets close enough to see what’s in the mix. Their eyes will be burned right out of their heads, and SCA’s attorney advises that it will be their own fault.

Before mixing ingredients:
  • All other Board members, except Rex, may be kept out of the mix at the discretion of the “authorized” chefs
  • 1 Board member must be crushed and removed using a very sharp knife to prevent the product being tainted by new ingredients or botched by “unauthorized” chefs or nosy neighbors

Note:
By order of the king, and upon advice of counsel, Rex can be anywhere. Know this, Board member chefs, you serve at the pleasure of the king. Any deviation from his rule will result in your being banished and shunned.

Upon the advice of counsel, and by operation of some invisible law, the king controls everything – who can be a chef, who is allowed in the kitchen, who must eat the cooked goose, and even, who can know that something is being cooked up.

Critical Step: Mix all ingredients in the dark
  • Consult with 1 possible vendor for a year before other vendors are put in the mix.
  • Throw into the trash any vendors that pop up that chefs don’t like
  • Select 10 possible vendors by secret formula to receive RFP.
  • When 7 vendors (including the one handpicked by the king) don’t go smoothly into the mix, make sure no one else knows their names or why they didn’t fit in.
  • Conduct 3 workshops to report what “authorized“chefs have done, being careful not to let any sunshine get on the actual product or it can be spoiled by nosy neighbors, especially those who “claim” they were chefs in another kitchen.
  • The GM and the king will make sure that the 2 Board member “authorized” chefs become firmly attached to GM & to the cooked goose so they won’t go to the dark side.
  • NO ONE, other than “authorized” chefs, are ever permitted to do any mixing of the SCA secret sauce, regardless of how much mixing they “claim” to have done elsewhere.
  • Do not deviate from this formula. It is a guaranteed way to mix up the exact same SCA secret sauce and cooked goose as has been shoved down the throats of SCA nosy neighbors multiple times in the past.

We are VERY lucky the restaurant choice is obvious

Two years the restaurant has been closed, and the process being used by the GM and a couple of Board members to make a decision seemed doomed to repeat the mistakes of the past.

Three proposals from the 9 invitees

Click this link for the PDF of the spreadsheet below. It’ll show you my very quick review of the responses, but the decision is, frankly, a no brainer.

Recommended Proposal: Village Pub

The Village Pub offers the only opportunity for a successful enterprise. They have accepted all the risk because they are confident in their model and the effectiveness of their marketing. They will put up $750,000-$1 million to  the cost of renovating the facility for their use. They have a solid, tested program, and would pay $3,000/mo. rent.

Best of all – they expect to only need to meet with management once a year. This inspires true confidence that the GM and the Board would stay out of their business and let them succeed here like they have elsewhere.
G2G Proposal

I was turned off immediately by the first paragraph.

“The Club”…is also reflective of the Country Club style restaurant we have been discussing with you for a year.

The GM’s interaction with one vendor bodes ill for an arms-length transaction. It also totally chaps my hide because when I was on the Board, the GM would not work with me on the restaurant as she only favored working with Tom Nissen and Forrest Quinn, Board members who “treat her right.” When I told them I had heard that they were meeting separately and playing golf with one of the potential vendors for the restaurant lease, they blew me off:

You are not authorized to be work on the restaurant even though you are a Board member. The GM is in charge, and Rex did not put you on our little Restaurant Space Board Work Group. Thank you very much, but no thanks.

Your concerns about our cozying up to one competitor are just silly. We don’t think we are creating a biased or inadequate selection process that creates future problems and conflicts of interest. Therefore, we’re not. So go away. Your comments have been duly noted and round filed.

Given this personal context, I’m sure you’ll see that it was hard for me to look favorably on G2G who, from all appearances, had a leg up. So, I’ll let his proposal speak for itself.

Annie’s Gourmet Proposal

Annie’s is a very small operation, and selecting Annie’s would present SCA with an unacceptably high level of risk with a promise of considerably less reward than we could get from the Village Pub.

Remodel for alternate use of the space

Table this. Save the money that would have to be invested in remodeling. Save the time that would be sent in further dithering.

Let us have a restaurant that people like and can afford and that owners don’t have to subsidize.

If the Village Pub pays up to $1 million for their own renovation and setup, doesn’t rely on SCA for any marketing support, pays $3,000/month, and runs a business like they are running in 13 other successful locations in the valley.

Don’t interfere with their business. Let them do it. They know how.

Save owners the $4,000/month we are wasting while the GM dithers.

 

 

 

 

 

Who will allowed to speak at today’s 2 PM SCA Board candidate forum ?

Who is running and deemed eligible?

10 owners self-nominated for the Board
7  cleared whatever vetting the GM and attorney dreamed up
2  did not pass muster, but will remain unnamed for unknown reasons
1  was declared ineligible in yet-another $325/hour attorney letter.
4 candidates who did not show up on 2/13 were included in the drawing for ballot position
2 of the 4 no shows on 2/13 did not send a rep and did not send regrets
1  candidate (Nona Tobin) showed up on 2/13, but was prohibited from drawing for a ballot position because, of course, she is a monster.

What happened to the other two nameless candidates who were gone in the first round?

The unnecessary secrecy makes me suspect that the GM’s implying that 3 owners were ineligible (deeming anyone ineligible to run is unprecedented) was a sham to cover up how I have been singled out and wrongfully disqualified by the attorney asserting the same false charges used to unlawfully kick me off the Board last August which was done without legal authority, without a requested open hearing and without any appeal or equal time to contradict the defamatory statements they’ve published about me.

Who are the 7 candidates whose names will appear on the ballot?

The candidates are listed  above in the order assigned to them by which lot was drawn for them at the 2/13/18 Election Committee meeting.

Two of the listed candidates – Vickie Lisotto and Cliff Wigen – did not show up for the drawing, Nevertheless, the Election Committee drew ballot positions for them without knowing whether Vickie or Cliff were even still interested in  running. They thought it was the only fair thing to do since they were absent. They apparently didn’t see anything wrong with prohibiting me from drawing a ballot number even though I was present and I had submitted an appeal.

What if there are only five candidates and four openings?

If Vickie and Cliff drop out, or were shills to begin with, and the Board is vindictive and disingenuous enough to insist I am a such a financial threat to SCA that I must be kept out of the race, there will only be five candidates for four seats.

This means that at least one of the two incumbents, Aletta and Bob, will get re-elected, despite the fact that they usurped the rights of the 2,000 owners who voted for me when Aletta and Bob voted to unlawfully kick me off the Board at exactly the same time that they were themselves were the subjects of recall petitions signed by 800+ owners.

Don’t forget that Aletta and Bob voted to spend almost $90,000 of owners’ money to pay a CPA and the attorney to botch the recall election so they could keep their seats and the attorney and the GM could keep their big, fat jobs.

Very convenient for Bob Burch and Aletta Waterhouse who have tried to ruin my reputation by saying that I deserved to be kicked off without any recourse and who personally benefit from knocking me out of the competition.

I guess nobody in power sees a problem with that.

Notes on Incumbents

  • Robert (Bob) Burch has been on the Board one term. He has not been an officer, but he has been instrumental in causing serious deterioration in owner oversight, the personnel and compensation policy areas, has aggressively attacked owners who signed the petitions of no confidence in the GM or who signed petitions to recall four of the directors. He failed to disclose that he has lived across the street from 2763 White Sage, the property that is subject to my quiet title litigation and two other lawsuits.  and he voted to force me to recuse myself from all collection matters even though he voted against me and voted to kick me off the Board over the litigation about that same house. Bob should be questioned about his reasons for refusing to address any of the owners’ concerns listed in the petitions for an election to remove him from the Board.
  • Aletta Waterhouse is Board Secretary and a two-year incumbent who was the subject of a petition and a vote for removal from the Board. She needs to be held accountable for her failure as the Secretary to ensure that the agendas, minutes, and other documents were not corrupted by error, negligence or fraud.
  • Both Bob and Aletta should be questioned and need to be held accountable for their actions as Board members in kicking me off the Board, refusing to respond to any of the concerns owners raised in their petitions, for concealing information that is legally accessible to owners, and for harassing and retaliating against me, for tolerating significant misconduct on the part of the GM is threatening frivolous litigation, using the association attorney as her personal attorney, and for allowing the GM and attorney to expend unbudgeted funds
  • James Coleman was hand-picked last August without any competitive process in violation of SCA bylaws 3.6 to fill my Board seat after the 6 other directors unlawfully kicked me off. Jim was not involved in any of the decisions that led to my being kicked off unlawfully off the Board and did not vote on any of the myriad foolishness the other two incumbents participated in.

Suggested Questions for today’s Board Candidate Forum

Here are some questions I hope somebody will ask the candidates today.
I would ask them myself, but you know, it’s the kiss of death when the words pass my lips…

Ask Aletta Waterhouse

  1. Did the Board vote in executive session to give the GM another bonus  after 800+ people complained and petitioned for a vote of no confidence?
  2. Why didn’t the Board follow the equitable enforcement procedures (notice, hearing, right to present evidence, witnesses, appeal in SCA CC&Rs 7.4, p. 35 and bylaws 3.26, p. 20) when the Foundation was evicted, when SCA forecloses on someone’s home, or when 6 of you kicked Nona Tobin off the Board?
  3. that are fair to owners except when the Board is taking action against  Why as Secretary did you allow the Board to meet in secret (no notice, no agenda) to take actions against owners without giving them a chance to defend themselves?
  4. Why didn’t you answer any of the complaints against you in the petition calling for an election to remove you from the Board?
  5. Why did you and Bob Burch recommend to eliminate the Golf Course Liaison Committee, the Communication Committee and gut the Property and Grounds Committee?
  6. Why did you vote to evict the Foundation Assisting Seniors?
  7. Why did you refuse to vote for proposed owner-oversight committees that are needed under self-management to control costs and prevent waste and fraud
    1. Communications
    2. HR and compensation
    3. Legal Services
    4. Investment
    5. Insurance
    6. Collections
  8. Isn’t a little arrogant to use 2-person Board “work groups” as if they would be more knowledgeable and achieve better results than owner-oversight committees comprised of resident experts, like the Finance Committee?
  9. Why did you ignore it when you personally were put on notice that the former debt collector had filed chapter 7 bankruptcy and SCA was at risk by continuing to contract with their sham successor  LLC?
  10. Why did you join 5 other directors to secretly vote to remove Nona Tobin from the Board when no one signed a petition to remove her, like 800+ people signed to remove you?
  11. Why have you abdicated policy control over the budget to the GM and the attorney even though our bylaws prohibit it and 2017 legal expenditures were $321,110 instead of the $90,000 budgeted and $38,000 has already been spent for legal fees January 2018 alone?
  12. Don’t you think having one firm be SCA legal counsel and SCA debt collector is a potential conflict of interest?
    1. What “Director Issues” cost $39,635 in attorney fees? Dumping Nona Tobin? That’s pretty high for a wham-bam process like a Muslim divorce where the man just says, “I divorce thee” three times and it’s done.
    2. Why did you let them spend $84,866 for a CPA to do a sloppy job on the recall election when the proponents of the recall supported letting the election Committee do their normal job?
    3. Why wasn’t there a bidding process for the CPA? Whose friend was he?
  13. Why should anyone vote for you when you always say that you are just following the advice of counsel?
  14. Why do we need you, or a Board for that matter, if you let the attorney and the GM take over?
  15. Why as BOD secretary did you allow the miutes of meetings to be falsified, e.g., to refuse to correct the minutes of the 7/13 executive session. It was not an emergency. You did not notify Nona to attend. The topic was false on this and 7/27 and 8/24. Why is that ok if you benefitted by lying on the official record and by
  16. that Nona had been excluded and not allowed to vote

Ask 2-year incumbent Robert Burch

Many of the questions to Aletta also could be asked of Bob. He wasn’t the Secretary but he should answer to why he voted me off the island for quiet title litigation when he has the potential conflict of interest that he lived across the street from the house I’m fighting to get back for 15 years, and those neighbors are certainly not neutral.

  1. Why have you consistently voted against meaningful owner oversight?
  2. Did you vote in executive session to give the GM a raise for 2018?
  3. Why do you think the right way to deal with owner complaints is to chastise them at BOD meetings for signing petitions or otherwise legally registering their disapproval of your performance or the GM’s?
  4. Why did you think you and 5 other BOD members could vote in secret to remove Nona from the BOD and block her from running again when over 800 signatures on a petition to remove you wasn’t deemed legally sufficient to remove you from the BOD?

Ask James Coleman, appointed in fill my seat 9/17

  1. When and how were you approached to sit on the Board?
  2. Do you think that your appointment was fair to others who might have wanted to be considered for appointment?
  3. What were you told was the reason that you could be appointed without any competitive process or notice to owners when the SCA bylaws 3.6 (p. 11) say otherwise?
  4. When you started last September you talked about values. Is one of your values creating meaningful owner involvement in governance?
  5. Why do you think having 2-board members be the Board-owner communication work group is more likely to come up with better proposals than a work group that includes owners?

General Questions

  1. What are your values and principles that would guide your decision-making?
  2. What do you think you could do to improve the performance of the Board in terms of responsiveness to owner concerns?
  3. Will you “Go along to get along” or will you speak up if the Board is not protecting the owners first?

Why can’t I be a candidate for the Board?

My latest rejection letter

I’ll translate it from legalese into what they are really saying are my fatal flaws:

The Election Committee and the GM predictably refused to acknowledge my appeal in the same manner they treat all complaints. Send to the round file. Don’t listen to both sides. Don’t do anything to resolve the situation. Treat the appellant like dirt. Call the attorney. Make the owners pay him $325/hour to get rid of the pest.

SCA GM published defamatory statements against me last August

How can they do that? OPERATION OF WHAT LAW?

The attorney is totally off base. And, in doing this, his conflict of interest is showing. He is not serving the owners who are paying him. He is serving the interests of the GM, himself as SCA’s debt collector, and individuals on the Board.

For him to be right, dozens of laws, CC&Rs and bylaws provisions would have to be violated or “deemed vacated”.

Not to mention the facts that:

  • the allegations that there are matters before the board from which I could make a profit are beyond false to the point of being absurd.
  • I’ll bet that I’ve spent more defending myself from these unreasonable attacks than all the other Board members combined have spent to serve as a volunteer, probably including all Board members since the SCA began.
  • I have made all the required disclosures and a full page of litigation disclosures and court documents have been posted for a year on nonatobin.com/litigationdisclosures.
  • I have no monetary demands against the association.
  • I have not, and have never intended to, pursue claims against the association through mediation.
  • There is zero financial risk to SCA from my service.
Why would the other Directors do this awful thing to you?

Because the GM and the attorney want me gone. They want me to stop asking why the GM, the CFO and the Facilities Manager are paid double the market. They want me to stop telling owners that the GM and the attorney have struck a devil’s pact to take unlawful control of the SCA’s budget.

I am all over them about the GM’s and attorney’s undisclosed conflicts of interest, but they have the full support of the Board President, Rex Weddle, who tried every which way to Sunday to make himself into a king and me into a second-class director who he did not authorize to get the same information or participate in Board deliberations which he only “real” Directors to participate in.

These three “leaders” have fed the Board a line of BS about how evil I am and that I have told their secrets. It is nonsense, of course, but it was very convenient for the other Directors to swallow it because it fit the “Us against her” model that they used from day 1 to marginalize me.

All of this drama is what really allowed them to feel self-righteous  declaring me ineligible for the Board. Claiming that I was making a profit from being on the Board was merely a pretext.  All the conflict between us was related to me blowing the whistle on their shenanigans. Only after I informed them that I intended to file an intervention affidavit with the Ombudsman to complain about harassment and retaliation did they start falsely accusing me of a secret profit motive.

In fact, the letter to dump me off the Board last August was clearly in retaliation to my intended complaint of retaliation against me for prior complaints about their multiple statutory violations, secret meetings, and the GM using the SCA’s attorney for her own private benefit.

99% of you can stop reading here. The rest of this blog is primarily links to laws and rules that were violated.

This detail is for the benefit of the NRED investigator to facilitate her completing the investigation with the required 60-day lead time before the June CIC Commission meeting where, hopefully, these issues will be adjudicated. 

The serious risk here is that a negative ruling could set a bad precedent for around 3,000 HOAs in Nevada if Boards or attorneys or managers could bypass voters and dump owners off the Boards for political reasons without any recourse.

What laws were ignored and what lies were told to get rid of me?

To “deem the board position held by Nona Tobin vacated as a matter of law” to be valid, legally-enforceable act, the following preposterous notions would also have to be true instead of the big, fat lies that they are:

  1. That I actually had made a profit, or tried to make a profit, or placed matters before the Board from which I could make a profit, when I did not;
  2. That I had failed to disclose a financial interest so that I could sneak up on the Board to catch them unawares to make them unwittingly vote for something that made me money;
  3. That the attorney or the GM or 6 members of the Board have the authority to deem me ineligible for the Board by declaring that I have a disqualifying conflict of interest and that they have the authority to impose greater eligibility, disclosure and recusal requirements on me than  the law ( NRS 116.31084(1)(a)(b)or NRS 116.3103(1)(a) or the SCA  bylaws 3.6, or SCA Board Policy Manual 4.4A(1)(2) impose on them;
  4. NRS 116.31036 and SCA bylaws 3.6 (both define the only legal way to remove a director) protections only apply to 6 of the 7 SCA directors, and those same 6 got the legal authority, magically from some unknown source, that permitted them to strip the 7th director of her legal protection from removal by any means other than by  a removal election;
  5. That NRS 116.3013(2)(d) (limitations on board power to define a director’s authority or term) and Board Policy Manual 4.3  (Director Authority) do not actually mean that 6 directors are prohibited from ganging up on a director by claiming that she is not “authorized” to act like, or be treated as, an equal director with an equal vote and with equal access to the same information and deliberations needed to make Board decisions.
  6. That the other 6 directors could simply decide in secret that I stood to make a profit from matters before the Board, and their decision superseded the conflict of interest provisions in NRS 116.31084 and  NRS 116.3103(1)(b) or SCA bylaws SCA Board Policy Manual 4.4A(1)(2)  that one would think applied equally to any Board member;
  7. That the 6 directors were acting as fiduciaries (acting solely for the best interests of the association membership) even though they failed to provide me or SCA owners ANY of the owners protections guaranteed by NRS 116, NRS 82, or SCA bylaws;
  8. That my quiet title litigation is inherently disqualifying regardless of the fact that SCA has no financial interest in the title, i.e., there is zero financial risk to the SCA regardless of whether the 8th district court  quiets title to me, or the bank, or the dentist who has possession;
  9. That my filing a notice of intent to file an intervention affidavit with the Ombudsman alleging harassment and retaliation constituted putting matters before the Board from which I stood to make a profit when I have no monetary claims for damages against the association;
  10. That my motion to correct the SCA litigation reports was putting matters before the Board that could make me money when the motion was to correct the willful misstatements of SCA attorneys to misrepresent the actual status of the quiet title litigation (all claims against SCA were dismissed on 5/25/17 and SCA has no financial risk in the remaining title dispute);
  11. That the secret vote of 6 directors was actually an official action of the “Board” as a whole in the 8/24/17 executive session despite there being no item to remove a director on the 8/24/17 executive session agenda and that the minutes provided were completely redacted to conceal that 6 directors kicked me off the board without due process by a secret vote in direct violation of NRS 116.31085 (3)(4)(5)(6) and, ironically, in explicit response to my notice of intent to complain about harassment and retaliation.

What’s being human got to do with it?

We are all more irrational than we think

I don’t know if anybody clicked on the links to psychological studies in my last blog about the 2/13 Election Committee’s hostile reaction to my appeal of my unfairly being excluded from the 2018 election process. But let’s assume nobody did.

Anyway, here’s the point.  These important psychological studies contributed to our understanding of how people conform to roles or how people tend to obey authority figures even if they hurt innocent people. This research contains valuable lessons that we all need to learn– but these are particularly important lessons for those in SCA power positions — if we are ever going to heal our community divide.

Why am I talking about this?

My goal is to encourage people in our community to re-frame the way we approach conflict resolution. None of us can be trusted to be completely objective and completely rational 100% of the time so we need to have a fair and objective governance system that’s strong enough to make sure those in power don’t abuse it.

Those in power can’t be allowed to run roughshod over anyone more vulnerable for any reason. And the only way to guarantee that is to have a system that won’t let them get away with it.

We are wasting our limited time, money and emotional resources on attorneys who cannot fix what is wrong, and who are, in my view, a big part of the problem.

Study #1: The Milgram Experiment

The Milgram experiment (1961) was designed to test how readily people acquiesce to authority even when it is in conflict with personal conscience. The goal was try to understand why so many “good Germans” just went along with Hitler’s horrific actions.

Conclusion

“Ordinary people are likely to follow orders given by an authority figure, even to the extent of killing an innocent human being.  Obedience to authority is ingrained in us all from the way we are brought up.

People tend to obey orders from other people if they recognize their authority as morally right and/or legally based. “

This Milgram study concluded that people obey authority figures even if it hurts innocent people. This can easily be applied to what happens here in SCA, given that we are all humans.

How could we use this knowledge?

So, to me personally, giving more power or “authority” to a small group of people is not the answer. The answer is having a governance system that will control those who have the power to prevent them from abusing it.

And to have a system that requires the uniform application of the rules to everyone to ensure that ALL owners are protected from any form of abuse, regardless of who is in power.

Study #2: The Stanford Prison Experiment

Stanford Prison experiment (1971) demonstrated how quickly people adapt to their assigned roles. Students randomly assigned to be the guards began acting aggressive and authoritarian and rapidly began feeling justified in being abusive while those randomly assigned to being prisoners took on so much of the fear and agony of prisoners subjected to abuse that the experiments were stopped for ethical considerations.

Today’s Communication workshop and yesterday’s Board meeting yielded some examples of how people conform to their roles, respond to authority, and conform to norms that are placed upon them that I will discuss in a future blog.

Right now, I just want to recommend a book to anyone who would like to explore a little further how we as humans behave irrationally and how we need to have strong social norms and systems in place to protect us from ourselves and the limitations we have from just being human.

The (Honest) Truth about Dishonesty
How we lie to everyone – especially ourselves

How could this book help SCA leaders grow into their roles?

I think Dan Ariely’s entertaining and informative writings (and other research I will suggest later) could teach us concepts and skills that we could use to help ourselves and to resolve some of our SCA community’s deepest divides.

I love listening to this guy’s books while I’m hiking. He describes about experiments that test and analyze theories about the many ways:

  • we humans are a lot less rational than we think,
  • how we’ll do something completely irrational and then just make up a reason to justify it,
  • how we all have blind spots,
  • how much our expectations can influence what we see, feel, or can learn.

Polly Anna speaking here:

It might encourage those in power to be more open to handling conflict in a more constructive way that might prevent exacerbating problems until court is the only answer.

The price we all pay

Refusing to openly discuss and fairly resolve owners’ concerns “on the advice of counsel” creates a litigious environment in which only the attorneys profit.

The price ALL owners pay is much larger than just the attorney fees. We pay for it with our most valuable resources: peace of mind and sense of belonging and joie de vivre.