July 2010
In our last statement on June 25, 2010, the United Board committed to keep our membership updated, to the greatest extent legally possible, of any decisions that are made regarding the investigation into the PCM incentive plan and allegations made by Third Mutual against PCM, Janet Price and Milt Johns.
In that spirit, the United Board would like to announce that we have engaged the services of attorneys Dave Feingold and Sarah Léger of the law firm Ragghianti Freitas to act as independent legal counsel to United. These attorneys have the significant qualifications, background and experience that United was seeking for this position.
Independent legal counsel will oversee and coordinate a thorough investigation into the incentive plan and Third's allegations. The United Board is also working with independent legal counsel to retain the services of an independent auditor to assist with the due diligence investigation.
Ultimately, a report will be prepared on which the United Board will rely in making a determination on how to proceed. We cannot make any determinations or reach any conclusions until we have had the opportunity to review the independent investigation of the expert consultants.
The United Board continues to work with PCM, and PCM has expressed its intentions to fully cooperate with the Board and the independent consultants during the course of our investigation. The United Board also believes it is important for us to be as transparent and forthcoming as we can be while the investigation proceeds about any other issues or concerns that come up during the investigation.
For example, this past week, the President of Third Mutual, Carol Moore, made a Powerpoint presentation to the directors of the other Mutuals and GRF regarding the Third Mutual lawsuit against PCM and others. While her presentation was limited in scope and content, and had set limitations on attendance by legal counsel for the other Mutuals and GRF, United appreciated Carol’s willingness to meet with us and share some information. This type of cooperation is much needed for all of us to meet the challenges ahead.
Also last week, United was informed that there is a group of residents who are approaching PCM’s employees and asking whether they would be willing to work for another company if PCM were no longer the managing agent. While this is not exclusively a problem for United, we wanted to let the United members know this conduct is not authorized or condoned by the United Board. These employees are PCM’s employees, and PCM may need to take whatever legal action against this group of residents that it deems appropriate, including actions for interfering with its contractual and other relationships with its employees.
We thank you all for your continued patience and cooperation and will continue to update you weekly.
March 2010
The United Board continues to demonstrate transparency in all its dealings except those regarding their executive session items that relate to personnel, disciplinary matters, contractual and litigation matters.
We have been and continue to be vigilant in our efforts to prevent service disruption and/or monetary harm. Protecting the United Laguna Hills Mutual Corporation and its shareholders, the residents, is part of its fiduciary responsibility.
The board’s recent actions have encouraged the other Laguna Woods Village Corporations and its managing agent, PCM, to act with restraint.
The United Board has worked to keep the community informed. Ensuring that residents are aware of what’s happening in the Village helps to keep rumors to a minimum. Rumors and innuendo are damaging to the Village. They lower our property values and pit neighbor against neighbor. Openly communicated, justifiable and reasonable actions best serve the whole community.
For 45 years the Boards have been able to work together. Doing so has brought economies of scale that otherwise are not possible. Residents, the four corporations and PCM can continue to count on clear, straightforward and honest communication from the United Board.
December 2009
An Oversight report on activities of PCM is required by our contractual agreement. The formal data gathered by staff, to begin this process is for the third quarter of 2009. This document reflects feedback about work performed during that time frame.
PCM Management and staff have been cooperative and supportive in implementing the goals set forth by the Board to provide oversight. The quarterly report submitted to Committee Chairs and the Board President proves that those goals were both meaningful and doable.
Our expectation is that quarterly and annual reports will continue to provide the Board, and residents, feedback about the success of PCM Management and staff in meeting the needs of the community. The Board will continue to work with staff to update the goals and objectives.
Summary of Oversight Parameters established by Board with Staff Input
Landscaping
- Landscape Department would measure the number of complaint calls for or service and use, as a baseline, quarterly comparisons over a rolling three-year period.
- Landscape Committee would regularly evaluate Curb Appeal, Trees, Lawns, Shrub Beds and Slopes using a 1-5 scale.
Maintenance
- Maintenance Department would report actual time taken to respond to Property Service requests, specifically targeting Moisture Intrusion Investigation and Remediation.
Financial Service
- Financial Services would report on the timeliness of reports required by law.
Cross-Divisional Items reported on the timeliness of established timeframes for drafting budgets, accuracy of committee and board reports, budget compliance and variances regarding the goals.
Goals set by the General Manager and Public Relations Divisions included regular TV 6 appearances and Globe articles, increased visibility on the Village website and reported on other possible forms to enhance communication with residents.
We are pleased to report that all goals were met or exceeded. The Board and PCM can take pride in this first effort to develop meaningful oversight. In 2010 the ULHM Board will continue to monitor and make adjustments to the oversight process as necessary. We want the United community to be confident that their Board is working with PCM staff to ensure excellent management and service.