Volunteer Amateur Board + Nonprofessional staff = $$$$wasted
Since 2003 and the absence of Federal government controls over the management of Leisure World:
The Golden Rain Foundation Board of Directors was sued by shareholders over the Board’s denial that Leisure World was subject to the Davis-Stirling laws regulating Home Owners Associations. GRF lost the lawsuit and $1,000,000 in legal fees. GRF appealed the loss, lost again, and wasted another $500,000 in legal fees.
The maintenance of the Leisure World globe was suspended for many years. When the restoration was done, the mechanism that turned the globe was inoperable, could not be replaced and some of the contents were missing. Almost $500,000 was spent to only partially restore the globe.
A whistle blower exposed a convicted felon on the management staff. He was fired, but the Human Resource Director who failed to do a proper background check, was not.
Taxes were not paid on time resulting in a $173,000 fine. A clerk was fired, not the Finance Director whose responsibility it was to pay the taxes. The Administrator was promoted to be the Executive Director, fired a year later, he sued and walked away with a $100,000 settlement.
Now the renovation of the pool project has exposed the damage caused by years of inadequate maintenance; $750,000 was approved by the GRF Board for pool renovations. Who knows what the final cost of this project will be. One thing is sure: it will not be cheap.
Volunteer Amateur Board + Nonprofessional Staff = $$$$ wasted.
A Volunteer Amateur Board of Directors can only be effective if they welcome and utilize professional help. It is clear from the above examples that Leisure World Boards of Directors since 2003 have not had, nor sought, the expertise necessary to effectively manage the community. This continues to be a costly mistake.
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