As I wrote in article “Bad news for Leisure World, Mutual 12” (Sun, March 23, 2017), in 2016 Mutual Board approved a $67,645 project “Separation of Domestic and Irrigation Water,” under which were added almost 10,000 feet of 2-inch pipes for the water supply to the irrigation system.
This time I would like to explain why it is possible that an absolutely unnecessary and expensive project took place, and how it happened that Golden Rain Foundation (GRF) and City of Seal Beach management made it possible.
Leisure World, the home for more than 9,000 residents, is the first in the country affordable-living community, that has fulfilled developer’s Ross Cortese’s vision of retirement living. To make it a reality—an affordable housing complex with a luxury lifestyle—Ross Cortese found a cost saving solution—he developed at one location multiple Homeowners Associations (Mutuals) plus one Association (GRF), which as a trustee to manage Community’s Common area and Recreational facilities.
In addition GRF provides services to each Mutual, such as accounting, maintenance and others, so each Mutual does not need to have its own plumber, electrician, building inspector, accountant, etc. Mutuals do not need to hire an expensive Property Management company—a middleman between Mutuals and service people.
GRF has qualified professionals as GRF employees, paid by shareholders. In 2017 salaries, wages and generous benefits will cost shareholders $9.6 million. And if a suggestion for a project is coming from GRF, Mutual’s directors, volunteers, etc. should trust GRF professionals and do not need to hire an expert to verify, that projects benefits the Mutual, not contractor.
When in March 2016 the project started, I immediately contacted Seal Beach Building Department to see the City Permit. There was no Permit given to Yamamoto, Inc.
My next contact was GRF Community Facilities Director. His respond was (quote): “I will check on this and get back with you.” A year later I am still waiting for the response. But the most disappointing response came from GRF CEO (quote): “This is a Mutual matter subject to the action of the Mutual Board of Directors.” And this is about a project that came from GRF.
A big problem for shareholders is that four board directors, who ignored warnings about the dangers of that project, now hide the real size of damage to Mutual property, refuse to open the expert’s report and are in hurry to patch some places, leaving shareholders with big future problems.
Now as the Mutual water supply system for irrigation is completely destroyed, it is time to answer some questions:
1. Why did the Physical Property Department suggest to the Mutual this absolutely unnecessary and expensive project?
2. Why did the Community Facilities Director and CEO not enforce multiple policies and allow that project to run without competition, approved engineering documentation, required permits and inspections?
3. Why did the city of Seal Beach and Building Department managers not enforce California and Seal Beach policies, required permits for water lines ¾-inches and above?
4. And the last, but very important question: Why were valves installed next to Mutual buildings with this warning: “This product does not comply with the Safe Drinking Water Act”?
Mark Pogrebinsky lives in Leisure World.
