Let them eat cake: learning how to be fair

When I was 12, my mother was killed in an United Airlines plane crash, leaving by father bereft with six kids ages 5 – 16 to raise alone. At 52, he had just retired a Colonel from the Air Force and was starting a private practice as a physician. He needed to have a way that we kids could get along and learn to treat each other fairly without him always having to resolve disputes.

I remember one system we used that taught us all to be more fair than we would have been if our dad had let the big kids rip the little kids off and hog up a pig’s share of a cake:

Whoever cuts the cake, gets the last piece.

This is a lesson that those in power at SCA need to learn if self-management is to succeed.

What’s wrong with the SCA system of “self-management”?

First and foremost, SCA is not fair. The big kids (the Board, the GM, and the attorney) are bullying the little kids (owners, residents and dissenting directors) to hog up all the cake that rightly belongs to owners.

  • The Board President is running amuck, consolidating power by controlling who can participate in decision-making by creating Board work groups and blocking owner-oversight committees.
  • The Board President is also misusing his power to disenfranchise political opponents and to silence opposition to the “party line”.
  • By disempowering appropriate owner oversight, executive limitations are poorly defined and internal controls are inadequate to ensure fair and equitable treatment of ALL owners.
  • The Board majority is just going along with the bullying and hogging up the cake “on the advice of counsel”.
  • The GM has been allowed to use the association attorney as her personal attorney (at owners’ expense), and is stealing the Owners’ cake and beating the crap out of the little kids who cry, i.e., owners /residents /board members who complain about non-owners grabbing their cake.
  • The association attorney has shoved a very big piece of the SCA Owners’ cake into his own mouth and grabbed another big piece for the GM while waving the knife threateningly at owners who even look at the cake, let alone try to get their fair share.
Owners pay dearly for having no control over their own cake

Here are some examples of problems with the implementation of self-management caused by the Board’s enabling the GM’s resistance to appropriate owner oversight.

  1. Owners pay for everything, but can be blocked from even knowing what they are paying for or how much they are paying.
  2. There is no way to control excessive executive compensation.
  3. The Board can act in ways that create liability or don’t protect SCA against manageable risks and the owners just have to shut up and pay for it.
  4. There is no way to hold the Board, the GM, and the attorney accountable as fiduciaries or to prevent them from abusing their positions for their own profit or personal or political power.
  5. Owners can be unfairly treated without being afforded the due process required by law.

The SYSTEM must build in controls so it is fair no matter who is in charge.

SCA does not have a system in place that protects owners from the very people who are supposed to be acting only for us.

If the interests of owners are adverse to those the GM or the Board President, then there is NOTHING built into SCA’s version of self-management to ensure that the owners’ interests will prevail.

In fact, with Adam Clarkson and Sandy Seddon calling the shots, there is no owner-protection system in place at all.

 

 

 

 

 

 

 

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?

 

 

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”

 

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.

Election Committee was inhospitable, angry even. Nevertheless, I persisted

Today’s SCA Election Committee meeting was an important part of the SCA Board election process because it was the official start of the election process where candidates drew lots for their ballot position.
What could it hurt if I drew a lot until the proper authority rules on my eligibility to serve?

Instead of considering the rejection of my candidacy for the Board as final, why not just treat me like any other neighborhood volunteer  – at least until there was one iota of proof that I really was worthy of such vilification?

What happened went I went looking for justice?

I gave the Board and management notice that I was appealing the 2/9/18 Notice of Ineligibility that the Clarkson Law Group had whipped up on SCA owners’ dime to make sure that someone who had the support of at least 2,000 owners was blocked from even being a candidate.

In the prior notice, I asked for them not to use the attorney or security to threaten or humiliate me. They accommodated me only insofar as owners didn’t  pay for an outside agent to ensure that I was relegated to pariah status. But then, they knew full well, they didn’t need to bring in the heavy-weights, the Election Committee – dutifully, sternly, and totally predictably stepped up to take on the enforcer role.

The Officials act official, or was it officious?

Before the meeting, I went to the EC chair, Carol Steibel, and told her that I was appealing the attorney’s decision to deem me ineligible and that I wanted to draw for a ballot number so I could stay on equal footing in the election process until a determination on my eligibility was made by proper authority (NRED).

When I handed her my 2-page appeal, she tossed it aside testily, and said,

“I’ve already read that.”

“How could you have? I just wrote it this morning.” said I.

“Well, I read something else, then. The attorney said you can’t be a candidate, and we have to listen to the attorney.”

When I sat at the table, two members of the committee told me sternly to get away from the table. Only candidates could sit there.

Carol somberly started the meeting by saying that the meeting would not be recorded and that no one was allowed to record it as it was against the law.

The thing about this edict that totally chaps my hide is a major owner protection to allow recordings so, to be ornery I guess, I said I was going to record it. Their reaction was intense. Forrest Quinn joined in saying that he did not authorize recording him.

Bob Burch said he wanted my assurance that I wasn’t going to record it. I said I wasn’t recording it, and he announced to the crowd,

“We’ve had this trouble before”

further solidifying the ‘Us vs. Them Her’ dynamic permeating the room.

Carol very formally read a notice from the attorney about my situation. She would brook no argument. It was FINAL!

  • The Board deemed Nona Tobin’s Board position vacant by law making her ineligible to be on the Board.
  • Nona herself made the charges public.
  • No circumstances have changed that would make her eligible.
  • Clarkson law office was merely asked to inform Nona since the Board’s decision that  was ineligible has not changed.

My, my, my…what an awful person that Nona is! An existential threat.  Carol’s tone made it totally clear that questioning the veracity or authority of the attorney would be considered treason, the concept of “Innocent until proven guilty” totally shrouded by her blind spot.
P.S. None of the above statements from the attorney that Carol reported are true. I’ll be handing the documents over to NRED to prove it as soon as I can.

Carol was so busy genuflecting before Clarkson’s awesomeness that she might have forgotten for the teensyist second that as the Election Committee Chairperson, her primary job is to protect the integrity of the election process, to ensure the election is free from undue interference and to protect ANY owner from being disenfranchised.

Maybe a little training? I suggest training should come from NRED or any competent, independent professional, but absolutely not conducted by Adam Clarkson.

Gary Lee, Board candidate new to the scene, innocently asked for a better explanation why I was dumped, but Carol was adamant that she had said all that needed to be said on the subject, and that he was holding up the very, very important business of the committee.

Tobin appeal to being disqualified as a candidate

Quick note about # 4 above, it should read that in addition to the NRED form 850, I also submitted the disclosure form as edited by the attorneys even though it was not legally-mandated for me to do so.

Tobin Appeal Page 2

Ask Yourself:
Would my actions make sense if I were on the Board to make a profit?

What does my being on the Board have to do with what the court does about the house? The Board doesn’t have anything to say about it.

But, for the sake of argument, let’s say the Board could vote on something related to the outcome of the title fight. If my ulterior motive was to get the Board to vote to quiet title to me instead of the bank, wouldn’t I have tried a different approach?

If I were trying to get a Board vote on litigation I could profit from, wouldn’t I have been smarter to ingratiate myself and “go along to get along”.
  • Wouldn’t I have been foolish to risk the ire of the Board to protect the right of owners to legally sign petitions to call for a vote to remove directors from the Board?
  • Would I have pursued formal complaints to enforcement authorities saying that the attorney and the GM should be fired for causing the Board to act unlawfully?

Ask yourself:
Isn’t it more likely that the same over-compensated GM and attorney, after protecting compliant directors in power from a removal election, just created a convenient ruse to bypass owners’ votes and remove the thorn in their side and block me from coming back?

 

 

Election Committee TOMORROW 9 AM – pick order of names on ballot

Concord Room Anthem Center
9 AM Tuesday, Feb. 13
Election Committee
Board Candidate Orientation
Candidates draw for ballot order

I’ll be there despite Clarkson’s challenge to my eligibility. I have requested that I be treated as a candidate unless a State of Nevada official with proper legal authority rules that I am not eligible to be a candidate.

As you can see in the email below (which I sent to the SCA Board, the GM, the Ombudsman, the NRED investigator and others), I have requested, in respect for my advanced age and frail heart, that I not be treated unfairly or be subjected to a hostile surprise attack, be escorted from the room or face any other bullying or humiliation because I have the temerity to insist on my right to volunteer to serve as a member of the Board.

I encourage you to come if you are interested in ensuring that SCA is not the kind of place where a homeowner in good standing, acting in good faith, can be treated shabbily for simply trying to be of service.

Remember, this is not about me. 

This is about having a system of governance that is fair, open and protects ALL homeowners equally – no matter who is in charge.