Board of Directors’ Squabbling Results in Over Budget, Out of Control Legal Expenses

The 2017 budget was presented and approved at the September 28 Board of Directors meeting. Our assessments will be increasing, attributable mainly to the County mandating curbside recycling which will increase our costs by $8 a month per household.

The allocation for legal expenses was increased by 300 percent — from $3,000 in 2016 to $9,000 in 2017. Why? Because that is about what the Board has already spent in 2016 and in their wisdom they want to continue wasting our money on unnecessary expenditures rather than finding ways to cut back. One of the major causes of the runaway legal expenditures is the dysfunction of the Board. Three members have resigned mid-term. A very expensive dispute resolution involving Jim Bailey and the other Board members occurred in July. All attendees signed a non-disclosure agreement. In mid-September Jim Bailey resigned.

At the September Board meeting I asked if the legal costs of the dispute resolution were the cause of the legal budget being overspent so drastically. President Paiz said it was. I asked how much that unsuccessful dispute resolution cost and Paiz said he could not tell me because it was confidential. He said he would have to ask Lynn Krupnik, who received payment for the dispute resolution, if it was “OK to release the information.” He stated that it would cost $250 to get an answer, Ms. Krupnik’s hourly rate. Apparently she does not bill in anything less than hourly increments. All RVS residents pay for the attorney’s services and we have the right to know the amount paid to her. While the content of the dispute may be confidential, the cost is not.

Rancho Viejo North has a legal budget of $2,000 and it usually goes unspent. Why does Rancho Viejo South spend so much more? The North has a Board composed of rational people who solve disagreements without involving an attorney. Our Board likes to waste residents’ money on their internal disputes and asking for legal advice from Ms. Krupnik on ridiculous things. Our Board does not represent the interests of residents. They are a disgrace.

Advertisements

Comments are closed.