If they had only known… Part 3

Owners pay a high price for Board ignorance

Basic ground rules the Board must learn by heart
  1. Association exists to serve the owners.
  2. Board exists to speak for the owners.
  3. Board may hire agents to act on behalf of owners.
  4. Association does not exist to serve the Board or management.
  5. Owners pay even when the Board or SCA agents make mistakes.
  6. Agents, including SCA employees, have no rights superior to owners’ rights.
  7. Rules exist to protect owners.
  8. Board must protect owners.
  9. The Board needs to learn the rules and follow them.

How can NRED training help the Board do right?

  1. Without proper training, the Board is ignorant.
  2. The Clarkson Law Group trained the Board to consult attorneys before ANY decision to the point of letting attorneys decide.
  3. Being ignorant, the Board has failed to protect owners from agents’ actions.
  4. Board needs to learn the rules set up to protect owners and follow them.

The process determines the result

Poor process = poor results

Board failures of the “duty of care”

The costly mistakes described below could have been avoided had the Board taken the training about the proper way to hire experts:

  1. The GM did not sign a management agreement with terms required by NRS 116A.620.
  2. The Clarkson Law Group hired as SCA debt collector without an RFP for  debt collector issued.
  3.  CPAs Ovist & Howard were paid $85,000+ to replace the volunteer Election Committee on the 2017 removal election without legal authority:
  4. HOA Lawyers Group LLC hired as SCA debt collector to replace the defunct and bankrupt Alessi & Koenig LLC
      1. without an RFP,
      2. without a Board-approved contract
      3. without competing with NRS 649 licensed vendors.

Board must learn the rules

Click here for the NRED training all directors should take to know how to prevent SCA being controlled by agents instead of by the elected Board: Hiring Experts and Professionals


Lessons the Board has yet to learn

1. When SCA became “self-managed”, the GM/CAM were hired without of a management agreement.
Not okay.

Absent a management agreement, the GM is an “at-will” employee and has no other rights than those bestowed by the SCA Employee Handbook.

2. RFPs are required for professional services not just construction or maintenance contracts per NRS 116.31086.

2.  The GM wasted $85,000+ for an unknown CPA, Ovist & Howard, to take over the recall election:

  1. without an RFP,
  2. without a Board-approved contract,
  3. without funding to pay for a CPA to do the recall in the adopted budget,
  4. without the Board amending the Election & Voting Manual to strip the Election Committee of its duties, and
  5. after the GM and attorney were both the subjects of active complaints that they were interfering with the independence of the Election Committee
  6. which resulted in diminishing the integrity of the election process.

Guess who benefitted. (P.S. It wasn’t the owners.)

  1. Four of the six Board members who allowed the GM to usurp the Board’s authority benefitted personally from unlawfully hiring a CPA to replace the Election Committee.
  2. Owners’ right to lawfully petition for a removal election was besmirched by the subjects of the petitions who wrongfully blamed the owners who petitioned for their recall for the huge cost of hiring a CPA that was done solely, 100%, by the GM under their watchful, grateful eye.

“For every action, there is an equal and opposite reaction.”   – Newton’s 3rd law

Hiring a CPA wasn’t the only way the GM sashayed in to usurp the authority of the Board, but to really take over, all dissent had to be crushed. These are things a properly trained Board would never have tolerated.

Action
As the liaison to the Election Committee,  I tried to get the GM, President Rex, and the attorney to leave the Election Committee independent and neutral to do their normal job during the recall.

Reaction
I was removed as the Board liaison to the Election Committee by the very people accused of interfering with the Election Committee’s independence.

Action
As a non-conflicted Director (not one signature, not one petition against me), I was one of the three Directors who should have decided

  • how the recall election was to be conducted,
  • whether the Election Manual should be amended for this one election
  • how best to protect the integrity of the election process

Reaction
The GM and the attorney decided to relieve the Election Committee from its duties despite having no legal authority to do so.

Action
I gave the Board notice of my intent to file a complaint of harassment and retaliation for all the actions they had taken against me in retribution for my recommending that the attorney and the GM be fired.

Reaction
The Board took the law into their own hands and kicked me off the Board without notice, process or appeal.

Kinda the same way Putin handled the one serious challenger to his re-election.

3. Restaurant RFP mistakes

  1. GM and one Director met with one competitor to give a leg up prior to RFP.
  2. Board was not informed of GM + director actions until it was a fait accompli.
  3. RFP issued to a hand-picked group of possible bidders
  4. Bids were not opened at a Board meeting.
  5. Bids were not not submitted on the same terms.
  6. After the number of vendors dropped to two, the “operating parameters” were adopted.
  7. Winning bidder who negotiated with GM in advance was allowed to change bid after the other bidder dropped out because the terms had been changed.
  8. No other bids were sought nor considered.

4. Last two debt collectors shouldn’t have been hired without RFPs

Doesn’t it seem like it’s a problem that

  1. HOA Lawyers Group became SCA’s debt collector without issuing an RFP to replace the defunct Alessi & Koenig, LLC?
  2. The Clarkson Law Group became the SCA debt collector without a RFP?
  3. The Clarkson Law Group, hired via the RFP issued to replace the Leach law firm as SCA legal counsel, used its “authority” as the SCA legal counsel to  “rule” that its own selection as the SCA debt collector did not require a separate RFP?

Who cares about debt collection?

We all should. Debt collectors are the source of huge expenses for HOA owners because of the weird way the Nevada courts allow HOA foreclosures to extinguish the bank’s security interest. While you might think this is good for HOAs, it is actually only good for the debt collector.

Remember, abdicating debt collection is:

  • a huge cost to owners
  • a violation of SCA bylaws 3.20 and 3.18(a)
  • foolish
  1. The cost of collection exceeds the amount recovered.
  2. HOA homeowners pay for the debt collectors’ fight with the banks.
  3. The loss of property value to each and every home in a Nevada HOA is, according to the UNLV 2017 study commissioned by the Nevada Association of Realtors, is 1.7% per foreclosure for delinquent dues.

 

 

 

If only they had known…Part 1

New Director training

NRED Power points are available for anyone to view on the NRED website. Check them out all out there or though future blogs.

Learning from these free resources will reduce unhealthy over-dependence on attorneys.

Click here to link to blog:
Why SCA now pays so much in legal fees

Click here for NRED presentation:
Welcome to the Board 

If the 2017 Board had taken this class from NRED instead of being trained by attorney Adam Clarkson, would directors still have acted outside authority granted by NRS and the SCA governing documents?

SCA Board officer selection orchestrated again

Officer elections over in a flash

  • No competition
  • No owner input
  • No surprise
  • No hope 

President            Bob Burch
Vice president   Rex Weddle
Secretary           Candace Karrow
Treasurer           Forrest Quinn

Why was last year’s officer election so bitter?

Simple answer. I committed the ultimate sin.

I volunteered to fix what I saw wasn’t working right in the transition to self-management. I told them the truth.

Unfortunately, changing the tone at the top means regime change.

OMG! Shut up!! You did not!

Yes, I did. Unlike this year’s newbies, I was totally unaware of SCA’s political realities. I never dreamed that volunteering to share my expertise would be treated as a capital offense.

How low will they go?

Frankly, I was surprised to see that Rex and his cronies would do anything – even break the law- to crush a political opponent.

And yet, here we are.

We have a full year of evidence that proves this point. This past year, we have seen VERY clearly many examples of how they have spared no expense (owners’ money, of course) to keep a death grip on the reins of power.

So, Dona Quixote, what did you say to tick them off?

I told them the incumbents were the bottom vote-getters so it was…

a mandate to improve the effectiveness of the Board as a unified governing body

That’s really bad.  What other evil did you spew?

I caused an uproar of outrageous indignation when I said that the vote showed an interest in changing the “tone at the top”

Yes, horrible as it was, I also said

the Board needed to be trained together to be guided by common, articulated goals.

You said what!!?

Actually, what I said is exactly what happened. The Board predictably devolved.

“…(absent proper training)…this Board will predictably devolve and return to a pattern of making backroom deals, abdicating its policy role to management, creating dissent in the community, and interfering with operational decisions which should legitimately be handled by staff.

Examples of how my fears were realized.Obviously, you can’t be trusted to keep a secret.
Remember,

Snitches get stitches.

On the advice of counsel
Unbelievably, Adam Clarkson or his underling, John Aylor, said these things directly or helped the GM and her buddies on the Board do them.

  • the Board can act without voting
  • the GM has rights that exceed those of the membership
  • directors facing recall have more control over the recall election than directors who were not named in petitions because the attorney says so
  • it is okay for the GM to use the attorney however she likes, including to get rid of a director who is too nosy about her pay and protecting the directors who like her from getting recalled
  • owners must pay whatever the GM and the attorney sayYou are so arrogant and mean, and you lie.

Even if I were arrogant and mean, I am not lying. Everything I say, I will eagerly say under oath.You deserved to be kicked off because, obviously, you are making a profit from doing this.

Seriously. They said that.

No decent Board member should have to work with you.

Well, that hurts.

It shows how stunningly effective a marketing campaign to demonize me has been. It persuaded a lot of people to agree with both that unfair assessment of me and with the ridiculous claim that other directors are above me and special.

It’s really sad, but the smear tactics have been led by,
Guess who?
current and former members of the Board, with the full support of the GM and the attorney, and funded by guess-whose money.

I was forced to become a blogger to respond to GM-initiated defamation and threats of litigation.

And now, Rex put out another self-righteous editorial claiming that it is the bloggers that have destroyed our property values.

Exhausting.

Since Rex has aggressively blocked anyone having equal time to debate his self-serving prostelyzing on the Spirit, the website or at meetings or any other forum, the only way to get the other side of the story out is to blog.

Will Bob write patronizing, insulting President’s reports?

If his diatribes during director comment periods at Board meetings are any indication, he will invest a great deal of energy in verbally assaulting anyone who disagrees with him that tries to speak up.

But, I’m pretty sure the deal he made with Rex, our new Vice -President, was to be a version of co-Presidents so Rex can keep a grip of the reins.

By my best guess, as far as the written word goes, Rex will continue to treat the Spirit as his personal snide blog as he ghost writes the President’s reports next year for Bob.

Previously, Bob complained that he finds writing boring when, on May 1, 2017, immediately before I disturbed the peace of last year’s pre-determined officer election, he wrote

“I have no desire to be President. In my entire military and civilian careers, I have never found writing reports or articles in magazines very interesting. Therefore, writing monthly Spirit articles, monthly Board meeting recaps, etc., is not something I would look forward to doing.”

So, President this year,

Way to take one for the team, Bob.

SCA Board elects officers at 1 PM today

It starts in a half hour.

I’ve made here a few satirical comments about how Rex Weddle will probably orchestrate the election of officers based on what actually happened last year.

Then, I’ll force myself to go into that hostile environment to see for myself what actually happens at the meeting.

What could possibly go wrong?

If it’s anything like last year, Rex Weddle will have worked it out in advance so only his handpicked directors can even be nominated.

Huh? Last year?

Here are the simple steps Rex followed last year to make sure he stayed President and to control who else could run:

  1. Met with or had serial emails with directors to set up quid pro quo trades to elect incumbents who could be “trusted” to vote as a block.
  2. Pay the attorney to say that standard election of officer procedures and Board-adopted Parlimentery procedures do not have to be followed.
  3. Rex, while chairing the meeting as President, got Bob Burch to nominate him.
  4. No other nominations could be made from the floor.
  5. If any disobedient director tries to nominate someone else, Rex claimed that it required a non-existent type of motion: a substitute motion. This is a handy trick because, once Rex got the attorney to bless breaking that standard protocol, it was used routinely to block seconded motions made on other matters by that same disobedient, second-class director.
  6. Rex even went so far as to text the director sitting next to me to give him the exact wording of the motion and name of who he was assigned to nominate for Secretary.
Hypothetically, what would be the worst case scenario this year?

President

Bob Burch will again nominate Rex, by reading a dramatic, praise-filled motion. Rex will again abuse the authority of the chair to block other nominations. Bob will move that Rex’s coronation be by acclimation and that the position’s title be changed to KING.

All of the bad outcomes for owners and resistance to best practices that I predicted last year that already happened will continue. All future dissent by directors or members will be crushed by the attorney who is beholding to Rex.

Vice-President

Jim Coleman will be nominated for Vice-President, not for his outstanding leadership qualities, which are substantial, but to show that Rex and the other incumbents are really not racists, like that name-redacted guy.

Secretary

Bob Burch will be pressed into service even though (sigh!) he doesn’t want to.

Strategizing with his cohorts before the meeting, Bob figured it would be insulting to try and make “the woman” do it. Too bad, though, it would have been a perfect way to keep her from trying to steal Forrest’s Treasurer job that he sold his soul to get only last year.

Worse, Candace was the top vote-getter and has a strong financial background and a reputation for being outspoken. She might insist that the association’s records be accurate, accessible and that the laws be followed so owners’ rights are protected. She must be kept away from a chance to audit anything.

Treasurer

Forrest Quinn will be the Treasurer. He will continue to work full-time to do management’s job in an excellent manner. He will sing the GM’s and the CFO’s praises for the outstanding job he does for them.

Paying the GM and CFO double their value in the market and claiming that what SCA pays is a secret is a small ethical price to pay for the staff’s complete loyalty to him and their willingness to attack dissenters.

If other directors question the propriety of obfuscating the special pay arrangements privately agreed to, or if owners complain, he will have no problem encouraging the Board to sue the bastards for defamation and charge them with a CC&R violation that poses an imminent threat to health, safety and welfare,  punishable by a fine of $1 million dollars or a sanction of foreclosing on their house and their banishment from the tribe.

So what?

Ordinarily, controlling who gets officer spots would be no big deal. Most non-profit organizations are thrilled when anyone will accept any thankless duties on a volunteer basis.

However, here and now, trying to ensure that a small clique controls everything is a problem that is costing us a lot of money and peace of mind.

Under Rex’s leadership and this particular GM, SCA is going in the wrong direction. This is negatively affecting our lifestyle, our property values and ultimately, will increase our assessment costs.

Isn’t that just a difference of opinion?

Ordinarily, yes. Ordinarily, it’s no big deal to have different opinions.

But, here and now, it is a problem. Rex and his cronies are operating from the perspective that SCA is a private company and that the Board should operate according to the norms that are applicable to a business.

This is bad, but not catastrophic, until the Dear Leader’s point of view is weaponized as the official party line, and the rule of law is suspended to prevent alternative points of view to be expressed, let alone be openly debated.

Weaponizing a perspective also involves inappropriate use of the association’s resources for maintenance of personal political power, and this is being done, here and now, on steroids.

Quid pro Quo –
you scratch my back…

Why would SCA agents, licensed professionals, play favorites with Rex and his cronies?

OBVIOUSLY, if the GM and attorney were to only work for the Board as a whole is nowhere near as profitable. 

Further, if all Board actions were public, SCA’s agents could be monitored to ensure they were acting SOLELY AND EXCLUSIVELY FOR THE BENEFIT OF THE MEMBERSHIP OF THE ASSOCIATION.

Works for SCA agents to have a blank check, but it doesn’t work for owners
  • SCA spent over $100,000 on attorneys in the first quarter of 2018, more than double the recently doubled budget.
  • $40,000 attorney fees were charged to evict the Foundation Assisting Seniors, and more fees will be charged to fight over which non-profit pays them.
  • They admitted spending $40,000 in 2017 on “Director Issues”  to write me “legal letters” telling me to stop complaining about them violating the law and to stop demanding owners’ access to information affecting our lives and pocket books.
  • The attorney made money protecting the GM who protects him so legal prohibitions for their conduct are easy to bust through.
  • Both the GM and the attorney have violated the standards of their profession by claiming powers and rights that are not theirs by law, e.g., make certain policy decisions or expend un-budgeted SCA funds.  (SCA bylaws and NRS 116.3106(1)(d) prohibit the Board from delegating policy-making authority in five areas.)
  • There is money to be made whenever those who let the agents get away with it are kept in power and those who blow the whistle are silenced.

Time for a real change.

Click to enlarge agenda

New SCA Board – New chance to get it right

Congratulations to the newly-elected members of the Board:

  • Candace Karrow,

  • Jim Coleman,

  • Gary Lee.

Check below for why no congrats for Bob Burch

A message from Gary Lee

Nona …. I want to take this opportunity to thank any of your readers who voted for me in this election.

I recognize the fact that I do not have any “direct” experience on any of SCA’s committees or volunteer programs but … I do bring to the board an extensive background in the management of facilities, construction, budgeting, finance and human resources – all of which are basic to the operations of the SCA.

I promise to bring an element of “common sense” to the board and a diligent effort in exploring facts and conditions prior to voting on any subject.

I would welcome the thoughts and opinions of any of your readers. I will be open to receiving any input and I will certainly consider them in my decision making.                       -Gary Lee

All directors get an equal vote

I personally have great hope that Gary’s significant management experience will be treated with respect  as mine was not.

The restaurant negotiation

Will Gary’s substantial restaurant experience be used for the benefit of the membership to protect SCA from giving away the store in negotiating with the probably pre-selected vendor?

Or is Rex’s death grip on consolidating power so strong that his expertise will be rejected in favor of Tom Nissen and Forrest Quinn who have no restaurant or negotiation experience that is specifically on point as Gary’s is?

SCA experience is required only for some

Rex Weddle and Bob Burch, in particular, proffered the pretext that my not having been on SCA committees was sufficient justification to refuse to treat as an equal member of the Board.

Keep your eyes open, new directors!

The new Board members need to guard against the incumbents claiming to possess special authority over them. Or that the Board is allowed to have secret meetings on topics other than the four permissible topics in NRS 116.31085 and SCA bylaws 3.15A.

Abdicating and usurping must stop

There is a surprising willingness for the GM and the attorney to play favorites and play fast and loose with the rules so that decisions that are supposed to be made by the Board in open session, informed by professional managerial and legal advice, somehow get made by who know who and who knows when.

Be careful, it is very easy to get sucked in.

Which brings me to why no congrats to Bob Burch

I am having trouble congratulating the fourth person elected, Bob Burch, because ongoing NRED complaints against him have not been adjudicated since being filed over eight months ago. These complaints include serious charges:

  • interference with the recall election
  • harassment and retaliation
  • abuse of authority
  • concealing SCA documents from members, including a director
  • taking action by secret votes against owners without cause or due process
  • acting for reasons of self-interest or revenge
  • failing to disclose a potential conflict of interest and then repeatedly voting on the issue
  • and more violations of owners’ legally protected rights

Never heard about these charges?

Voters probably didn’t hear about these open complaints because they were concealed.

Unfairly, “on the advice of counsel” and on owners’ dime, the Board and the GM purposefully concealed  complaints against them, and the attorney from the membership.

They refused to place the complaints on an open Board meeting agenda as required by NRS 116.31187.

Board Policy Manual 6.1 was disregarded when they would not allow me, as an elected director, to discuss these violations in any open Board meeting.

They would not fairly even allow the complaints to be investigated or be fairly debated executive session.

When I tried to get the Board act lawfully, the Board’s official response was to kick me off the Board without notice or appeal.

Good luck to the new people.

Paying attorneys to disappear political opponents

Lesson 3 – Create a false narrative to win

or as Chuck Lorre, the creator of Big Bang Theory crudely put it in Vanity Card #586:

(Quote redacted)

Item 11 E – Quarterly Litigation Reports

Now that I have your attention, let’s discuss how item 11 E – quarterly litigation reports – is an example of how the Board wastes lots of our money to use the many SCA lawyers to control who sits on the Board. (I’m sorry. It seems I have to offend some people to keep everyone else awake.)

Only one Board candidate seemed to notice problems

In member comments, Board candidate, Gary Lee, pointed out some inadequacies in the reports.

Of the 15 cases reported, 9 are foreclosures. Is there a problem with the way we are handling foreclosures? There are inconsistencies.

Gary did not know what I’ll tell you below. In my case, that the defamatory and false statements were used as the pretext for kicking me off the Board and that the Board has refused my repeated requests to correct “errors” for a year.

Clarkson, SCA legal counsel and debt collector, lies like a rug

Clarkson Law Group has given the same false report for the last five quarters on the case that supposedly disqualified me from the Board.

Wrong!

  • The current status of the quiet title case is not as of 2/1/17. That is the date when the original cross claim was filed, but dismissed on 5/25/17.
  • This ignores that the claims of the Gordon B. Hansen Trust, by Nona Tobin, individual and trustee,  were dismissed by Judge Kishner at a hearing on 5/25/17, and that the order (due in June 2017) was not filed by the SCA attorney until 9/20/17, a month after I was ambushed and kicked off the Board on 8/24/17 .
  • The mere existence of this case is what Clarkson falsely claims disqualified me from serving on the Board. More importantly, what this lie has achieved is keeping my nose out of his debt collection business.

The Lipson law firm’s report is defamatory.

I was not removed from the Board “for cause”.
This is a horrible, hurtful lie.

It brands me “guilty!” without any finding of fact. It is a continuation of the harassment and retaliation I have been subjected to for over a year.

I was unlawfully removed by the other six Board members in a secret meeting based on the totally false and unsubstantiated allegation that I was making a profit from my position on the Board. Poppycock.

The FACTS

  1. SCA was a named party in 2015 by the plaintiff Jimijack, who has possession of the house and been collecting rents on Bruce’s house since 2014.
  2. Nationstar filed a second lawsuit against the buyer at the foreclosure sale of 2763 White Sage Dr. in January, 2016 and completed a failed mediation with  SCA a month before I showed up as the third lawsuit.
  3. On behalf of the Gordon B. Hansen Trust, I entered the case on 2/1/17 as a defendant in intervention on the two existing cases in order to regain the title for the trust.
  4. The 2/1/17 cross claim against SCA was to get SCA to void the defective foreclosure sale from which SCA’s former agents unlawfully kept $60,000 that should have been distributed to either Nationstar or the GBH Trust after paying SCA only $2,701.
  5. On 5/25/17, all claims against SCA were dismissed ($2,701 paid SCA in full in 2014 so SCA has no financial stake in the quiet title dispute), but the Lipson attorney did not file the 5//25/17 order until 9/20/17, a month after I was kicked off the Board on the pretext that the mere existence of this case disqualified me from being on the Board.
  6. I did not, and could not, make a profit from my position on the Board.

And yet, the Lipson report brands me

My request to correct false reports was not heard.

Click here to link to the request I intended to, but did not, bring to the Board.

I stayed silent.

The tone of the meeting and the mood of the crowd made it clear that there was a zero% chance that the Board would see through their prejudices and willful ignorance to treat me fairly.

There was a standing ovation for Jim Coleman who was shaken and outraged at being falsely accused of voting to kick me off the Board by lying, probably racist, Mr. (name redacted) blogger.

There was zero acknowledgement that I existed in the room, let alone was deserving of compassion as the falsely accused (of making a profit off my Board position) and the actually-injured (kicked off the Board without a trial or finding of guilt) victim.

Who cares?

Good question. The issue is way bigger than me.

The precedent puts homeowners in all 3,000 HOAs in Nevada at risk of losing control over who sits on their Boards if who they elect can be “disappeared” without cause, a trial or an appeal on a pretext.

Let’s face it

I was kicked off the Board because the GM and the majority of the Board did not like me telling them they sub-standard in their  implementation of self-management and that they were breaking lots of rules and needed to straighten up or I would tell on them.

So, they made up a story to get rid of me

If it can happen here, it can happen anywhere

All the directors in any HOA would need to do to get rid of a Board member they don’t like would be to deem their position vacant by operation of law.

It’s easy to kill a political opponent if you have attorneys willing to ignore all the other laws that exist to protect homeowners from arbitrary and capricious abrogation of their rights.

This precedent is especially risky for the state because Adam Clarkson is the president-elect of the Community Association Institute and claims that his firm represents 300 HOAs, 10% of those in Nevada.

Good-bye, democracy.

Being serviced by SCA attorneys is painful and pricey

This is the second blog in a series about lessons learned at the April 26 Board meeting.

Lesson 2-
When we don’t get what we paid for, we should send it back.

This blog is about how it is always “lose-lose” when the SCA Board abdicates to attorneys instead of being guided by:

  • common sense,
  • NRED Board training,
  • owner oversight and
  • professional management standards of practice.

This blog is about the overuse and wrong use of the SCA attorneys to protect individual Board members and the GM, and actively, purposely hurting owners – all on owners’ dime.

Special thanks go to Rex Weddle and Sandy Seddon for setting the mean-spirited and divisive tone at the top that has prevented all neighborly, amicable resolution of differences on their watch.

Highlights of legal expenditures

  • First quarter 2018 $101,300  more than double the $48,750 budget
  • 2017 quarterly budget was $22,500, so $101,300 was nearly five times what was expected to spend in a quarter last year
  • In 2015, before self-management SCA actually spent $116,292 for lawyers
  • In 2014, $52,219 was spent for the whole year.
  • In 2016,the whole year of lawyers was $118,861, but that was before buckets of money were extracted from owners’ pockets in 2017 to pay to be aggressively serviced by the Clarkson Law Group

Again, a special thanks to Rex and Sandy for their utter disregard of best practices and fair play to make owners pay attorneys to keep your dirty little secrets.

What are we getting for our money?

Can we figure it out from the budget variance “explanation”?

“NRED, FAS, Director liability, policy updates, etc.”

Pretty unsatisfactory explanation, I’d say. I’ll also say these ridiculous legal fees are not necessary expenditures. They are only necessary if the Board is duped into doing everything the hard way instead of opting for the ounce of prevention.

Some of these fees are also caused by individual Board members and the GM using the attorneys in inappropriate ways, and the attorney leading, or going along with, unfairly stripping owners’ of their legal protections. The attorney makes big bucks as a quid pro quo for the Board abandoning even the appearance of controlling budget policy.

SCA leaders refuse to be transparent about what they are doing, but I think you all should know what you are buying.

And remember, unlike blogger # 3, Mr. (name redacted), who was drummed out of the legal profession for forging a judge’s signature, I will swear under oath to the truth of what I say, and I will, willingly and openly, back my words up with evidence.

I’ll show you in Lesson 3 why attorneys’ lies about me are so serious and why doing this to one owner hurts ALL owners.

 

 

 

 

Board meeting as self-serving bully pulpit

Lesson 1 from April 26 BOD meeting

“What gets us into trouble is not what we don’t know. It’s what we know for sure that just ain’t so.”                                             -Mark Twain

Blame the bloggers

At least the first hour of the meeting was dedicated to blaming bloggers for all that is wrong, including the loss of SCA property values. It was a stunning example of how the Board marches lock-step against  owners rights and reflexively resists holding itself and the GM accountable for fixing problems of their own making.

Board beliefs vs. an alternative point of view

Tom Nissen listed his beliefs – all concerns shared by the Board – as his parting gift to the membership.

My beliefs offer another, albeit unwelcome, perspective, to show the way I think the Board and GM could better create value for owners.

Click here to link to the article about the UNLV study on HOA foreclosures referenced above.

Next time, I’ll share with you my planned request to correct the false and defamatory statements in the April SCA litigation reports. I didn’t speak up at the meeting because I was afraid I’d get lynched for complaining.

Making owners pay to fight owners knowing how our money is spent

A point for transparent Nevada

The R-J just won a victory for transparency when the District Attorney was required to release information about how much the DA’s office was compensating witnesses in criminal trials.

Public interest
Using taxpayer cash to fight the taxpayer
Click on photo to read full editorial

 

“To sum it up, the taxpayer-funded prosecutor’s office sought to conceal from taxpayers certain payments it made with taxpayer money – and then eventually cut a deal that will cost taxpayers $55,000 (in attorney fees).”

 

“Wouldn’t it have been easier – and cheaper – for those in the DA’s office to simply have made the information available in the first place? Instead, the default setting is always to retreat into the shadows and make liberal use of other people’s money to fight against open government.”

Sound familiar, Mr. Clarkson?

It should.  Sun City Anthem Board and GM are misusing the SCA attorney to hide their sins, and he is laughing all the way to the bank.

SCA’s leaders are wasting owners’ money to hide information which should be easily accessible to us at virtually no cost on the website.

SCA’s brand of mean-spirited opacity- hiding actions and expenditures from owners and making the owners pay the attorney fees for hiding what could even be unlawful or fraudulent – has more elements of sleaziness than I saw in the government’s efforts to avoid transparency.

SCA has gone beyond the practice of merely blocking freedom of information requests as described in the R-J editorial to being outright abusive to owners who just ask for information they have a legal right to receive and distribute as they wish.

For example, the claim on the new SCA Records Request Form that SCA records that might be requested, such as employee compensation, are “private and confidential records of the private entity that is the association” is simply false.

Those records can’t be confidential by Nevada law in Sun City Anthem and not confidential by that same Nevada law in Sun City Summerlin.

Threats of litigation?

I don’t see that the Public Employees Retirement System threatened the R-J with punitive sanctions for just submitting a Freedom of Information Request like our mean-spirited leaders are doing to SCA owners, threatening litigation for even asking for information the GM or individual Board members want to be publicly known.

GM’s “privacy rights” bigger than owners’ rights?

I also don’t see that the government officials ever claim that freedom of information requests violated some imaginary and legally-unsupported “personal privacy rights” as SCA’s attorney has done on behalf of the GM.

Only withhold records from certain parties?

I don’t see that the District Attorney claimed the requested information could be withheld from the R-J, but that it could be released to the R-J’s competitor? SCA has done this very thing repeatedly by providing information to OSCAR (recall opponents) that was withheld from others who were not in that camp.

Making up laws?

I also don’t see that the District Attorney just made up some bogus legal  requirement that the R-J acknowledge that the information can’t be used in ways the DA would consider harassment or even just embarrassing. The new SCA information request form contains multiple ridiculous “acknowledgements” which have no basis in law.

The SCA attorney is lying to owners about what owners’  rights are. Fines and other sanctions are threatened against  SCA owners for requesting and disseminating information, both of which are within fully within owners’ legal rights.

For example, the claim that SCA CC&R 3.6(h) and SCA Rules & Regs 9.4 would be violated and an owner subjected to penalties for violating any of the totally fabricatedduty, restriction and/or obligation provided herein” is a double whammy of threatening an owner for violating restrictions the attorney just made up out of thin air. 

Magically creating privilege?

I also don’t see any egregious claim by Clark County that documents, actions or conversations become privileged just because the secretive official wishes that they were legally protected from public view as the Clarkson Law Group, the GM and individual members of the Board ludicrously and repeatedly do to unlawfully attack owners for exercising our legal rights.

 Ask any Discovery Commissioner

The burden of proof that documents, conversations or actions are legally privileged falls squarely on the party who is seeking protection from disclosure.

Not the other way around.

Election Recommendations

 

Election Recommendations
The SCA View Newsletter by Ron Johnson

Vote for Coleman, Karrow, Lee and Wigen

It’s that time of year again and your vote is needed to determine who will best represent the interests of our community. On the heels of the results of a very divisive recall petition, where a substantial number of members voted to throw Bob Burch and Aletta Waterhouse off of the board, your vote is more important than ever. While that petition failed to meet the very high threshold needed for a director’s removal from the board, this election campaign has provided voters with another opportunity to demonstrate their concern.

It’s my position that the community would be far better served by electing three new members to the board rather than returning any of the old directors who had been previously elected. Let’s say goodbye to Bob Burch and Aleta Waterhouse and vote for JAMES COLEMAN, CANDACE KARROW, GARY LEE AND CLIFF WIGEN. Director James Coleman was not elected but was appointed to the board last year.

My concerns about Burch and Waterhouse stem from the board’s questionable and potentially illegal actions in approving if not directing management to adopt certain accounting gimmicks. Those accounting gimmicks have resulted in the deferral of almost a million dollars annually in scheduled repairs to the following year(s).

Such unreported deferrals amount to self-serving efforts by the board to avoid increasing assessments, thereby helping those directors who are running for reelection.

While one prominent blogger has been eager to pass along management’s assessment that the Association’s finances are in “excellent” shape, that assessment is grossly misleading. That assessment failed to reflect what’s been really going on behind the scenes in what I view as an unorthodox effort to provide millions of dollars over time for unanticipated and unfunded repair projects at Liberty and Anthem Centers.

One method management adopted was to defer almost a million dollars in previously scheduled repairs from one year to the next year. Such deferrals have a cumulative effect on subsequent scheduled repairs in the following years, which is exacerbated when there are recurring unplanned events in the following years, like the Anthem Locker Rooms, forcing management to annually push scheduled repairs forward year after year. As reserve funds are expended for such unplanned repairs, the reserve fund keeps going down by that amount. At some unknown future date, that reserve deficit will have to be replenished.

Meanwhile, the board will continue to rely on members not paying close attention to what’s going on behind the scenes in the accounting room as your money get “created” and spent for unbudgeted purposes.

 

 

 

 

 

 

Restaurant Rumors
Did the board or management influence G2G (Denny’s) to drop gaming in order to assure their likely selection as a tenant?

Club Rumors
Some residents are looking forward to the possible creation of the NEW YORK CLUB.

Administrative matters
My new Email address is: rljohnson32@coxÆnet
My new phone number is: 702-413-6026

Copyright © 2018 The SCA View-Journal, Inc., All rights reserved. The SCA View Newsletter

Published by Ron Johnson, Email: rljohnson32@coxÆnet, Phone: (702) 413-6026