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June 7, 2007Resident's Voice1 Residents Voice June 7, 2007 Conrad Grundke.

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Presentation on theme: "June 7, 2007Resident's Voice1 Residents Voice June 7, 2007 Conrad Grundke."— Presentation transcript:

1 June 7, 2007Resident's Voice1 Residents Voice June 7, 2007 Conrad Grundke

2 June 7, 2007Resident's Voice2 Tonights Subjects: The World Globe CC&Rs –GRF Board Meeting 6/5/7 Credit Cards Expense Reimbursements

3 June 7, 2007Resident's Voice3 The World Globe PCM/GRF Formed Broadband Corporation and sold Advertising using the World Globe trademark. RRLH (trademark owner) filed suit requesting 2% of profits. RRLH and PCM/GRF came to mutual agreement on solution.

4 June 7, 2007Resident's Voice4 HK&C and GRF failed to mention: –There was an alternative to removing the Globe. Get written permission from RRLH if PCM/GRF agree to use trademark for non-commercial purposes only (display). GRF elected to dismantle, remove and destroy the Globe. The Globe was a part of the original Trust Agreement and valued at $122,844 in Trust property cannot be disposed of without owners consent. –Also, resident donations were a large part of the $71,000 spent to move the Globe to the gate 12 area.

5 June 7, 2007Resident's Voice5 Conclusion: We cannot Trust PCM, GRF, or our Corporate Attorney.

6 June 7, 2007Resident's Voice6 CC&Rs PCM, GRF & Corporate Attorney have stated for the past 5 years that United and GRF have no CC&Rs. Stewart Title Company did research and certified that the CC&Rs apply to GRF, United and Third. PCM, GRF & Corporate Attorney state that United and GRF have no CC&Rs.

7 June 7, 2007Resident's Voice7 There are no current plans to resolve issue.

8 June 7, 2007Resident's Voice8 GRF Board Meeting 6/5/7 GRF requested funding for a 3 Step Land Use PROJECT: –Step 1 will cost $91,000 and will conclude with the use analysis. –Step 2 More money –Step 3 More money When I asked if we would have a determination after Step 1 on the status of the CC&R's, there was not a, "Yes," or, "No" answer. Double talk by the General Manager about "Title Searches" and "parcels of land" were all that I got.

9 June 7, 2007Resident's Voice9 If the status of CC&Rs could have an impact on land sales, –Could we save $91,000 by knowing this before beginning the project? When this question was posed to the Board & PCM, it was suggested by the General Manager that we should approve Step 1 (The Land Use Analysis) regardless. The GRF Board voted to allocate the money, $244,000, for the Project.

10 June 7, 2007Resident's Voice10 Conclusion: We cannot Trust PCM, GRF, or our Corporate Attorney.

11 June 7, 2007Resident's Voice11 Credit Cards It took 4 years before credit card billing records were provided to Directors and Owners. During that time the General Manager stated several times that the credit cards were for Emergency Use only. Some samples of Emergency Use!

12 June 7, 2007Resident's Voice12 DateDescDayTotal 12/10/04Sushi Wok ExpressFri$ /14/04GulliversTue$ /15/04Cedar Creek InnWed$ The Lobby LoungeWed$74.65 The LoftWed$ /16/04BJS Rest & BrewThu$ /17/04Dana Warf SportfishinFri$ The Lobby LoungeFri$ The LoftFri$ /20/04BJS Rest & BrewMon$ /21/04Beach HouseTue$ /22/04Lawry's Five CrownsWed$ Macaroni GrillWed$29.28

13 June 7, 2007Resident's Voice13 Further examples of Emergency Use!

14 June 7, 2007Resident's Voice14 DateDescDayTotal 12/30/04On The BorderThu$ /04/05Sushi Wok ExpressTue$ /05/05Baja FreshWed$ /06/05CACMThu$ Claim JumperThu$ On The BorderThu$ /10/05Players Sport GrillMon$ /11/05Sushi Wok ExpressTue$ /12/05On The BorderWed$ /13/05Casa De PicoThu$ /17/05Sushi Wok ExpressMon$ /18/05Sushi Wok ExpressTue$ /19/05On The BorderWed$28.31

15 June 7, 2007Resident's Voice15 Conclusion: We cannot Trust PCM, GRF, or our Corporate Attorney.

16 June 7, 2007Resident's Voice16 Expense Reimbursements With the legislative changes to the Davis Stirling Act, the Home Owners Associations are limited in what information they are NOT obligated to provide to the owners. Residents received 2 years of Expense Reimbursement records and review of these records questions the legal and ethical use of these charges by PCM.

17 June 7, 2007Resident's Voice17 Expenses are used as deductions in the IRS tax computations. IRS defines legitimate expenses as those costs that have a direct benefit to the corporate owners. They also compare expenses with those of like industries, in our case (Home Owner Associations). With that in mind, do the following sound to you as legitimate expenses:

18 June 7, 2007Resident's Voice18 General Ledger $40.05 Chris Trapp Mileage Reimbursement

19 June 7, 2007Resident's Voice19 Expense Reimbursement $40.05 Clippers Game Travel from PCM to Staple Ctr to PCM of 90 miles for Staff Outing. OKd by M. Johns

20 June 7, 2007Resident's Voice20 The following are samples of one of nine divisions in PCM (the Finance Div). To minimize the amount of data, only expenses associated with food/meals are included in this information. The Finance Division is divided into 6 Work Centers –300, 310, 311, 330, 360, 370

21 June 7, 2007Resident's Voice21 # EmpWk CtrWk Ctr DescTotal 4300Financial Services Admin$ Accounting$3, Warehouse$2, Budget & Financial Planning$2, MIS$ Purchasing$2, Food Total$11,492.69

22 June 7, 2007Resident's Voice22 Work Center 310 – Accounting (13 Employees.) The following slide is a listing of some of the charges associated with Food and Travel for Food.

23 June 7, 2007Resident's Voice23 Wk CtrDateWk Ctr DescDescriptionTotal 31002/09/05AccountingJanet Retirement$ /07/05AccountingAudit debriefing with accountants$ /21/05AccountingEnd of Audit Celebration$ /04/05Accounting1st Qtr BD Lunch$ /22/05Accounting2nd Qtr Staff Luncheon$ Travel - 2nd Qtr Staff Luncheon$ /24/05Accounting3rd Qtr Staff Luncheon$ /02/05Accounting4th Qtr Staff Luncheon$ /09/05AccountingHoliday Luncheon$ Travel - Holiday Lunch$ /07/06AccountingEnd of Audit Staff Celebration$ Travel - End of Audit Staff Celebration$ /27/06Accounting1st Qtr Staff Luncheon$ Travel - 1st Qtr Staff Luncheon$ /21/06Accounting2nd Qtr Staff Luncheon$ Travel-2nd Qtr Staff Luncheon$ /21/06Accounting3rd Qtr Staff Luncheon$ /14/06AccountingHoliday Luncheon - Accounting Staff$ Travel-Holiday Luncheon - Accounting Staff$ /21/06Accounting4th Qtr Staf Luncheon$243.16

24 June 7, 2007Resident's Voice24 Work Center 370 – Purchasing (6 Employees) The following slide is a listing of some of the charges associated with Food and Travel for Food.

25 June 7, 2007Resident's Voice25 DateWk Ctr DescDescriptionTotal 01/06/05PurchasingNicole Review Lunch$ /03/05PurchasingNicole BD lunch w June,Delorie,Debbie,James$ /16/05PurchasingFarr's review lunch$ /17/05PurchasingRaul,Jim,Leo,Delorie,Nicole,James$ /02/05PurchasingDebbies BD lunch w Gina,Nicole,James,Delorie$ /29/05PurchasingDebbie's review lunch$ /03/05PurchasingGina's review lunch$ /22/05PurchasingMtg lunch with Debbie$ /15/05PurchasingDelories BD Lunch w James, Debbie, Nicole$ /20/05PurchasingZoehof Lunch$ /03/05PurchasingGina BD Lunch w James,Debbie,Delorie,Nicole$ /08/05PurchasingParking for Marriott Luncheon$ /14/05PurchasingXmas Lunch w James,Nicole,Gina,Delorie$ /05/06PurchasingNicole's Review Lunch$ /02/06PurchasingNicole's BD Lunch w James,Delorie,Debbie,Gina$ /21/06PurchasingDelorie's Review Lunch$ /18/06PurchasingGina's review lunch$ /13/06PurchasingDinner w consultant - Towers Hair Salon$ /25/06PurchasingDebbie BD lunch w James,Gina,Nicole,Delorie$ /09/06PurchasingDebbie's review lunch$ /22/06PurchasingJanet's BD Valet Parking$ /07/06PurchasingDelorie BD Lunch w Debbie,James,Gina,Nicole$ /07/06PurchasingGina BD Lunch w Delorie,Debie,Nicole,James$ /30/06PurchasingXmas Lunch w debbie,Scott,Gina,Maggie,Delorie,Nicole,Raul,James$ $2,718.16

26 June 7, 2007Resident's Voice26 The following is a subset of the charges on the prior page for Work Center 370. Reading these charges is indicative of the extravagant use of the Mutuals money for meals.

27 June 7, 2007Resident's Voice27 Date DescriptionTotal 02/03/05 Nicole BD Lunch w June,Delorie,Debbie,James$ /17/05 Raul,Jim,Leo,Delorie,Nicole,James$ /02/05 Debbies BD Lunch w Gina,Nicole,James,Delorie$ /15/05 Delories BD Lunch w James, Debbie, Nicole$ /03/05 Gina BD Lunch w James,Debbie,Delorie,Nicole$ /14/05 Xmas Lunch w James,Nicole,Gina,Delorie$ /02/06 Nicole's BD Lunch James,Delorie,Debbie,Gina$ /25/06 Debbie BD Lunch w James,Gina,Nicole,Delorie$ /22/06 Janet's BD Lunch Valet Parking$ /07/06 Delorie BD Lunch w Debbie,James,Gina,Nicole$ Parking-Delorie BD Lunch w Debbie,James,Gina,Nicole$ /07/06 Gina BD Lunch w Delorie,Debie,Nicole,James$ /30/06 Xmas Lunch w debbie,Scott,Gina,Maggie,Delorie,Nicole,Raul,James$ Grand Total $2, (BD = Birth Day)

28 June 7, 2007Resident's Voice28 Conclusion: We cannot Trust PCM, GRF, or our Corporate Attorney.

29 June 7, 2007Resident's Voice29 Do YOU Believe That We Have A Problem ? We can ignore the Legal vs. Illegal discussions, since that is a lower priority at this time. However, Are the expenses justifiable and ethical? –NO! Could these costs reflect how PCM approaches all of our business costs? –YES

30 June 7, 2007Resident's Voice30 How did we get into this mess? Lack of oversight by the Boards of Directors! –Most Directors only know what PCM tells them. Unwarranted Trust in PCM to do the right thing! –Lack of knowledge forces Directors to rely too heavily on PCM. A Corporate Attorney whose interests are too closely related to PCM. –Attorney does not have a cohesive relationship with the Boards and will look toward PCMs needs rather than the needs of our Mutuals.

31 June 7, 2007Resident's Voice31 The Crash ! We had an opportunity to remedy this with the 2007 Management Agreement. Our Boards took it upon themselves to write the agreement ignoring the advice of an independent attorney. We are now faced with potential consequences of PCMs actions that will impact our assessments.

32 June 7, 2007Resident's Voice32 The End

33 June 7, 2007Resident's Voice33


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