Improper Board Vote Approves Payment of President’s Legal Costs

At the July 2014 BOD meeting, former Directors Buhl and Pfeifer were late to the Executive Session.  To hold a meeting and/or vote, a quorum of two-thirds must be present (4 of the 6 board members at the time).  Since Treasurer Burguieres resigned in early July, former President Thompson and three Directors were presentA motion was passed to approve Association funds to pay for legal representation for President Thompson in a potential dispute resolution with another board member.  Wait a minute!  Shouldn’t the President recuse herself from a vote that allocates Association funds for her legal defense?  Oops!  Then there would have been only three votes – no quorum – to allow her to use the Association funds like it’s her own checkbook!  Can you spell I-L-L-E-G-A-L  procedure?  How about potential M-I-S-A-P-P-R-O-P-R-I-A-T-I-O-N of funds?

How did this happen?  Several times this year, former Director Pfeifer requested copies of records and financial documents regarding budget overruns, which were denied, even though the Association By-Laws allow all Directors record inspection rights.  Some of these documents were eventually provided after plenty of wrangling with the President, 4 Board Members, Community Manager, HOAMCO executives, Association Attorney, and a Sheriff’s Deputy (See Who Called the Sheriff in March)!

The most recent incident of records denial involved the request of legal communications regarding an improper action taken against former Director Buhl in 2013.  After this request was denied, Director Pfeifer filed a Dispute Resolution request against President Thompson, in an effort to resolve the matter without spending association funds on attorney fees.  He was following the Charter and ByLaws. Unfortunately, former President Thompson, contacted the Association Attorney again without board approval, which started another round of Association expenditures on attorney fees, adding to an already overrun budget.

Former Director Pfeifer tried to follow the Dispute Resolution Process which opts for a Mediator, a much less costly route.  Instead, former President Thompson and Association Attorney Krupnik derailed his efforts through delaying tactics and telling a potential mediator that the board voted to cover the President’s mediation costs, but not Director Pfeifer’s.  Hmmmm.  What’s wrong with this picture?  The Association Attorney who is supposed to be representing the Association is now also representing the Board President who has been violating Association ByLaws.

What is a Director to do in the face of such obvious corruption?  After contacting outside attorneys at their own cost, former Directors Buhl and Pfeifer were given two options: 1) Use their own personal funds to obtain a court injunction to force the President and Board to follow the ByLaws, or 2) Inform residents of what is going on, so they can VOTE FOR CHANGE at the Annual Meeting.

There you have it folks.  It’s up to you!   Get involved and demand accountability.  The BOD will be making many decisions regarding infrastructure and irrigation on your behalf – some of these decisions will include increases in assessments.

For more details, click here: Dispute Summary

Update: At the September 23, 2014 BOD meeting, President Thompson and Director Houston denied the improper vote despite proof in a letter sent to Director Pfeifer by the Association Attorney – and a discussion with a potential mediator who said the BOD refused to pay for Director Pfeifer’s costs as well as the President’s.   None of this discussion was included in the official BOD minutes.
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