Ethics – Page 7 – SCA Strong

SCA Board & GM cause substantial decrease in happiness factor

This open letter is republished with permission from Favil West, President of the Foundation Assisting Seniors, who formerly served as a SCA Board member for six years as well as for three years on the Commission for Common Interest Communities. Favil describes his view of how much the SCA Board, GM and over-used attorney are causing our community to suffer under their system of mis-management.

Ladies and Gentlemen:

Fake news abounds in our community. I’ve seen it produced by this SCA Board, a committee chair, a vice chair, a club president, a blogger and on down the line. Good grief even one of our board members has sent out a plea for you to vote no so she can stay on the board. A move without precedent

Let’s look at the Berman blog. He unabashedly states that the 3 board members, currently to be recalled, have committed “no crimes or malfeasance.” That just is not true. I personally know of 8 infractions of Statute. For starters, the 3 board members to be removed are accused of having violated the following statutes:

NRS 116.31035
NRS 116.31036
NRS 116.31088
NRS 116.31085
NRS 116.3108
NRS 116.31184
NRS 116.31183
NRS 116.31175

At least one of these violations is a misdemeanor and even though it is in the NRS 116 ACT, it falls under other jurisdictions.

Ron Johnson produces an editorial page, usually well documented, the most recent of which has factually debunked most if not all of the claims made by the OSCAR group. Dick Arendt lends his passion to the fray stimulating research and thought while Rana gives us a more even- handed treatment of the facts. Nona Tobin just started a blog. We won’t know its character for a while but I personally look forward to seeing it as I know it will contain significant detail. To top it off, through personal conversations with the Ombudsman, I know that NRED is concerned with what is taking place here at Sun City Anthem.

Anyone with even the slightest knowledge of financial figures knows full well that numbers can be manipulated to show anything you want them to show. I believe all of us have heard the old saw, figures lie and liars figure. I fear that is true in the instant case. Why doesn’t the board lay out the true cost of management in dollars and cents for all the unit owners to see? How much has this self- management debacle truly cost? What was our annual cost of management before self- management and what is it now? They should show consulting fees, the trips, parties, meals, salaries, separation payments, if any, the current salaries of the top 5 highest paid staff, their bonuses, their allowances, and their benefits, as well as the total salary costs including that of Lori, who has since left SCA. Then add in the legal fees which according to the budget are approximately $90,000 over budget, and all the outside contracted work such as IT, and all accounting services. Once all of that is together, we, the unit owners, can actually compare costs. Until this information is released to the unit owners, well, the old saw is still sawing away.

While unit owner’s angst cannot be measured in terms of dollars and cents, there has been a substantial decrease in the happiness factor because of board, GM, and legal actions. In my nearly 18 years living here in Sun City Anthem, six years of which I served on the SCA Board, I have never seen anything that compares with what is now happening on our hill.

This removal election has already turned into a debacle. Words such as voter suppression, stupidity, mismanagement, failure of the board and its gm to do its fiduciary duty, and probably a few I cannot repeat are being bantered around while board members are pleading for you to vote no so they can continue this sordid behavior. Even those who do not support the recall agree that the ballot mailing and instructions show a high degree of incompetence.

In my opinion, these ballots should be thrown out and new ones issued. These new ballots should be color coded to eliminate confusion, a simple explanation included, and, finally, the outside envelope should say ballot enclosed. That’s not too hard is it. It’s what we done in the previous 17 elections. That is really not too hard if you know what you are doing.

Notwithstanding the impact this will have on the reputation of our Sun City, win, lose, or draw this removal election and the reasons for it remain an everlasting stigma on the 3 to be recalled, the rest of the board and its GM. Frankly, in my opinion, Weddle, Burch, Nissen, and Waterhouse should all resign as they will have no respect in the future.

Folks, at the hands of this board board we are no longer the class active living community we once were. Our reputation has been sullied by incompetence, prevarication, and dereliction . How sad.

Favil

Voter Suppression Tactics

The following essay was written by Jim Mayfield, former member and Vice-President of the Sun City Anthem Board, and is republished here with his permission. Jim retired after six years service last May at the same time I was elected to replace Carl Weinstein.

On Saturday, we received our ballot for the recall election in the mail. At first, I almost discarded it in the recycle bin without even opening it. I though it was another piece of solicitation junk mail. (Subsequently, I was told that I was not the only one who thought this way.) However, I opened the letter and found out that it was the ballot for the recall election and the instructions for how to mail in the ballot.

The purpose of this email is not to reiterate the obvious flaws (already noted by others) in the ballot process that should and could have been avoided by the CPAs retained to perform the voting process if they had studied and incorporated the time-tested SCA election processes. Instead, the purpose of this email is to raise the ominous issues regarding 1> the motivation for the use of voter suppression tactics, and 2> the ethics behind obvious voter suppression tactics.

Preface
During my six years of service on an SCA committee and board of directors, I observed a steady decline in the willingness of SCA homeowners to volunteer their time to serve as club officers, SCA committee members and to seek election to the SCA board of directors. This trend is indeed regrettable because of the large number of intelligent, talented residents who live within SCA and whose talents could be used to insure efficient operations at SCA and continuous improvement of the quality of life within SCA. I also observed that fewer than half of the SCA homeowners vote in the annual board of directors election. Even more significant, less than .75% of the SCA homeowners attend public board and committee meetings.

On one level, I empathize with why SCA homeowners do not chose to participate in the governance of their homeowners association. Most people retired to enjoy pursuing life-long retirement objectives. Annual assessments appear low compared to the benefits received. However, as consequence of the lack of involvement by a broad group of homeowners in the governance of SCA, a small group of self-serving homeowners and management control and manipulate the operations of SCA. Their personal agendas frequently do not represent the best interest or service expectations of the homeowners.

Motivation for Use of Voter Suppression Tactics
The threshold to remove a director is just over 2,500 votes of the 7,144 SCA homeowners. Anyone who doesn’t vote or whose ballot is disqualified is an automatic “no” vote. Obtaining the “yes” vote from 2,500+ homeowners is an almost impenetrable barrier to the removal of a director. This reality begs the question of why management, members of the current board, and individuals wanting to maintain the status quo feel compelled to

use voter suppression tactics,
disseminate false and misleading information,
spend over $4,500 to get out their fake fact message, and
conduct possible violations of state law and SCA governing documents

to defeat the removal election.

The obvious answer is that they want to send the message that any attempts to dislodge them will be unsuccessful;` so, don’t waste your time. They also fear that even an unsuccessful attempt at removal in which a majority of the votes cast are for removal will send the communication that a majority of the active members of the community are not supportive of the performance of current management or board of directors. When faced with dissent, they rely on brutal, frequently illegal, tactics to suppress homeowner involvement and the dissent of any elected director who doesn’t “go along to get along”.

Ethics Behind Obvious Voter Suppression Tactics
The question we, the homeowners, need to answer in this recall election is the message we want to send regarding the ethics and culture of the SCA community. My experience since moving to SCA is that it is a community of fine, diverse people who share an incredible moral compass. I do not believe that the actions of the current board or management reflect the moral values of the residents of SCA.

Personally, I never believed the recall election stood a chance of being successful. However, I believe that every “yes” vote sends a message to the corrupt, self-serving insiders who currently control the governance of SCA that their morals and actions do not represent the community.

I urge you to spend the 50 cents to send in you ballot and to vote “yes” in the recall election.

Thanks for reading a best wishes to all of you.

Jim Mayfield

11 Reasons Why We Need To Recall The Board Members

Tale of two faces – The Board members subject to recall should be removed because they refuse to tolerate any criticism (from the homeowners) of Sandy Seddon, the General Manager (GM) and berate those who dare to speak in less than glowing terms about her performance. The board is thrilled with Sandy Seddon. Their experience with her is that she quickly handled the deferred maintenance issue, quickly transitioned away from the prior management company, responds fully to their requests, and is just an all-around great gal. However, the Sandy Seddon that the Board members see and experience is quite the opposite of what many homeowners experience and which was described to the Board in a petition signed by 836 homeowners and residents. The Board has refused to hold her accountable to address the problems identified in the petition against her or to take any action to improve homeowner relations and customer satisfaction. During the September Board meeting, Bob Burch yelled out, “Enough is enough!” and two pages of his diatribe about why no one should criticize the GM is in the Board Book. They should be removed as directors because they are protecting the Sandy Seddon more than they are protecting the homeowners paying the assessments.
Not fair to owners. The Board takes actions without hearing both sides, does not uniformly enforce the CC&Rs and By-Laws if it is outside issues like the color a house can be painted or how many trees must be planted. They fail to prevent problems and resist solving them, so the homeowners end up paying for the pound of cure. Look at all the bureaucratic hassles the Board has created for the clubs by requiring bizarre business license requirements and vendor insurance. They allow the GM to create bureaucratic hassles for owners and clubs and to set paid staff up as competitors to the clubs for booking dates.
Usurp authority of the owners to initiate lawsuits. Owners voted against SCA filing litigation on Liberty Center construction defects, but the Board ignored that and filed a lawsuit anyway. NRS 16.31088 requires an owner majority vote before SCA can initiate a lawsuit, but they did not ask owners to vote before they acted to evict the Foundation Assisting Seniors or to sue the Foundation for $40,000.
Transition to self-management is flawed. No adequate policy framework is in place to protect SCA, particularly as a first-time employer, and there are no written plans or timetables to complete the transition. Despite my areas of expertise in HR and municipal management, the Board unfairly excluded me from participation in any personnel policy discussions and claimed I was “not authorized” to see records relating to prior decisions of the Board or to examine such questions as:
1. Why is the GM paid $100,000+ over the appropriate salary for that job?
2. Why does the compensation for four managers eat up about 10% of the 2017 operating budget?
3. Why don’t we have performance standards and customer service ratings linked to GM compensation?
Board does not act lawfully. They have tolerated the restaurant being closed for nearly two years in violation of CC&Rs 7.2(b).They have issued several unlawful cease & desist letters against me to stop me from inspecting ANY association records, but there are numerous other examples included in the documents filed with the state enforcement officials.
Lack of method for requiring GM accountability. These board members should be removed because they have abdicated too much authority to the GM with no system for accountability. It is unlawful to hire a GM without a management agreement, but no agreement is currently in place. Without a management agreement, the GM is an at-will employee covered only by the personnel handbook. Poor business judgment to employ her without the specification of the required provision of NRS 116A.620. These directors should be removed, not just because they have failed to hold the GM accountable in areas beyond facilities maintenance, but because they have allowed her to threaten frivolous litigation against SCA and to falsely accuse me as a Director of defamation because I criticized her performance. She has also falsely accused me of violating her privacy rights and creating “employer liability” for asking about her compensation with her former employer.
Abuse by attorney. Why do we even need a Board if the attorney calls all the shots? The HOA attorney (Clarkson) makes quite a profit by getting the Board to believe that the budget does not have to be amended to spend, spend, spend. The Board refused to have board training conducted by the Ombudsman, and Clarkson conducted the training in a closed workshop, deemed it attorney-client privilege, was abusive to me and gave biased instructions, e.g., that the Board MUST get attorney approval before making any major decision, and it is an unauthorized practice of law (for me) to tell them they don’t need to go to an attorney for so much but to use their common sense.
Loss of control over the budget. The Board should be removed because they are allowing the attorney to represent the GM and not the association membership as a whole. For example, this attorney advised the Board (in violation of NRS 116.3106 and By-Laws 3.18 a and 3.20), that the GM can expend SCA funds for purposes other than what they were budgeted for without board approval. Clarkson’s legal fees for the first four months have amounted to $103,000, and much of that was expended for legal actions that never should have been taken. This does not account for how much the Board has spent to have him take over the Removal Election Process and strip the SCA Election Committee of their duties defined in the adopted Election & Voting Manual.
Lack of transparency. The Board allows the GM to refuse to give access to information in an easy, user-friendly way. They take the attitude that they are only required to provide the legal minimum, and you have to jump through hoops to get that if you are not considered an ally or if you are being punished because they think you MIGHT misuse the information.
Owner involvement in governance is diminished. The Board refused to adopt the proposed owner-oversight committees for Legal Services, Personnel, Insurance, or Investments even though these are areas where the expertise of community members is greatly needed and could be cost-effectively employed. They abolished the Fitness Committee, the Property & Grounds Committee, and the Golf Course Liaison Committee. Meanwhile, the Communication Committee is in limbo. There is a plan (only discussed in private so far) to have Pinnacle, Villas, and the service groups report to the GM instead of having a Board liaison. No attempt is being made to promote customer satisfaction or to institute “best practices” to improve residents’ quality of life or build a sense of belonging in the community. These Board members do not respect owners and abdicate to the GM.
Abuse of privilege. NRS 116.31085 (3) and SCA By-Laws 3.15A define the only permissible topics that an HOA Board can discuss in executive session. These directors should be removed because they circumvent this by making decisions in closed “workshops,” by using email for deliberations (despite having been issued a letter of instruction prohibiting it), and, at times, by unlawfully excluding a director from the deliberation and action (myself and Jim Mayfield before me). Rex and Sandy make excessive claims for confidentiality on ALL their SCA business emails even when the discussion is just about leaking pipes.