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Subject: MC accepts Directives from one board member without board approval

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WilliamT
(Arizona)

Posts:489

06/17/2006 10:03 AM
I would appreciate comments on this. A board member tells the MC to take an action that is not a routine maintenance item. It is to permanently close one of two pedestrian entry gates. The board had not discussed this, so there was no resolution by the board to take this action. The MC actually had the least-used and least-convenient walk in gate welded closed, and the combo lock still remains. People try to use it and can't figure out why it won't open. So now the kids will wait until a car comes in and go out the auto gate. When the kids or adults walk in, they now go to the intercom post, open the automobile gates and walk in. That puts a lot of unnecessary wear and tear on two expensive gate opener motors. Sit takes a board resolution to have this type work done, and since there was none, I believe the MC should have told the board member giving her the directive that this action required board approval and consequently she could not order that work. This MC does not do a professional job, in my opinion, and should be replaced. There are many other things that this MC does which are not according to procedure. There have been two other cases recently where the MC took a directive from an individual and I complained about it but all I got was an accusation of holding up progress. I want to know if others agree that it is wrong for an MC to accept a directive from individual board members without having the board debate and approve a resolution for the work, other than routine and emergency repairs. Because procedures are not being followed, a mandatory Audit was not performed in 2005, and I do not believe one was performed in 2006. I will find out in July when it must be completed, if done. The MC is supposted to keep us out of trouble, and the contract calls for them to assist us in obtaining an audit, so they are certainly not helping to keep us out of trouble. When directives are accepted by the MC and acted on without board approval, then that person is creating a situation where board members are pitted against one another simply because proper procedure was not followed. I am a new board member, and enough of the incumbent board members are ok with whatever this MC does. Because of thatI do not have enough votes to ger this person removed from assignment to our board. What other avenues do I have to get the MC company to remove this person and assign us another ? Thanks, Bill

RogerB
(Colorado)

Posts:3725

06/17/2006 2:07 PM
Bill, on the surface it appears your problems are not with the MC but with a Board member and/or the Board. How does the Managing Agent know this Board member is not authorized to give them directions? Does your Agreement with the MC specify who has authority to coordinate with the MC? Regarding replacement of a managing agent the authorized Board representative can contact the MC and request this. Upon receipt of such a request the mC can comply. Otherwise, if it is a well written Agreement, then either party could terminate the Agreement. Is an audit really required every year by your controlling documents? Some Declarations state an audit or financial review every year or two years; other Declarations state upon request of __% of the members. An audit or financial review is the responsibility of the Board; the MC usually only coordinates it. BTW I think you meant 2005 rather than 2006 since 2006 is only half over.

Roger Borcherding Official HOATalk.com Sponsor DARCO Property Management (Colorado) (303) 925-0150 *See legal notice below (end of page) or go to www.hoatalk.com/legal

WilliamT
(Arizona)

Posts:489

06/17/2006 2:32 PM
Roger, The docs require an annual audit by a public accountant. I meant the 2004 year was not audited in 2005 and the 2005 books have not been audited. There has been no mention of the 2005 audit so I am assuming they aren't being audited, and won't know for sure until the deadline for providing us with the audit, which is the end of July. The agreement does not specify who is authorized to give directions. However, the MC is at all of our (quarterly) board meetings, acts as chairperson and takes the minutes, and knows what resolutions have been passed. Any directive such as permanetly closing a walk in gate would not be something that an individual could direct without a resolution. I agree that the board member who is giving these directives is causing a problem but I would think that the MC who is supposed to guide the board, help them understand procedures, and keep the board out of trouble, would stop the member and stated that the board did not make a resolution to permanently close those gates. Thanks, Bill

BrianB
(California)

Posts:1748

06/17/2006 3:27 PM
you don't shoot the private for following orders given to them by a general. You shoot the general who gave the wrong orders. The willingness of the MC to follow any directive, after it has been pointed out that doing so is incorrect, should weigh against them in the next evaluation. However, it is the board member who deserves punishment.

RogerB
(Colorado)

Posts:3725

06/17/2006 3:29 PM
I agree with you Bill. In your situation the MC should advise the Board member on the proper procedures to follow and refuse their request.

Roger Borcherding Official HOATalk.com Sponsor DARCO Property Management (Colorado) (303) 925-0150 *See legal notice below (end of page) or go to www.hoatalk.com/legal

GeraldT1

Posts:0

06/19/2006 1:12 PM
WilliamT - Your MC has too much authority, the incidents you have provided are proof that both need to be admonished, not in public. I'd develop a resolution that will effectively stop one board member from contacting the MC to do something, rather the board member should contact the board President or board members. Was timing really of the essence that this welding of a gate had to occur asap? It seems it cause a safety, and confusion issue by welding it. The Board President, or whoever is intrusted to act in his or her stead should be the only board member that can give a directive in which action must be taken and only with ratification of a majority of the board, unless timing is of the essence at which time the result of such action is immediately notified in report form to the board members.

WilliamT
(Arizona)

Posts:489

06/19/2006 4:33 PM
I appreciate all the comments. Bill

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