Board stalls homeowner group's request for information

This post is an update to our original post titled Homeowners hire attorney to obtain information from GIL Board, posted February 29, 2012.

The Blog has just received information from a homeowner, who did not wish to be identified by name, that the GIL Board has communicated to the homeowner group's attorney, Mr. Randall M. Lipshutz, that it needs more time to prepare for the document review requested by the homeowners.  The reason behind the Board's delay is unclear.  The Blog did attempt to find out more information by contacting Christopher Gorton (Ph. II, Unit 611) - the only homeowner mentioned by name in the group's original request - via e-mail, however Mr. Gorton declined to comment on the matter, stating only that the Board had, in fact, responded to the homeowner group's request via the Association's counsel, Mindy Waitsman.

If any of our readers have any more detailed information regarding this developing story that they would like to share with their fellow homeowners, we invite you to contact the Blog anonymously at gil@go.to.

Homeowners hire attorney to obtain information from GIL Board

Although winter is not yet over and the drop in evening temperatures can still fall below freezing, things sure seem to be heating up here at Glen Iris Lofts.

The Blog has recently learned that a group of Glen Iris Lofts homeowners have hired Atlanta law firm Lipshutz Greenblatt, LLC in an effort to enforce compliance on the part of the GIL Board to provide access to information the homeowners claim they have a legal right to review, following the Board's latest denial of their request for information. 

According to a letter sent to the Association this week by the group's attorney, Mr. Randall M. Lipshutz, Esq., (a copy of the letter obtained by the Blog has been included with this post, below) the homeowners have requested; to review all ballots, proxies and other material related to the most recent election of Board members in December; to view the emails that evidence proper Board approval of the 2012 budget, given that the budget was not approved at a Board meeting where minutes were taken; all maintenance contracts maintained by the Association in excess of $25,000; all documents related to the Board's decision to seek a loan to pay for exterior stucco work and window repairs (the so-called 'mega-loan').

This is not the first time Mr. Lipshutz has been involved in the legal affairs of Glen Iris Lofts.  Most notably, he was the attorney that drafted the Association's By-Laws, Articles of Incorporation and filed the initial Declaration of Condominium.  In their selection of legal counsel, the homeowner group could probably not have found someone with greater knowledge and familiarity with the governing documents of our Association.

The Blog sent an e-mail to the GIL Board seeking comment on the homeowner group's action, but did not receive a reply.

The Blog will keep our readers abreast of any new developments that pertain to this story as details emerge...stay tuned!


Copy of letter sent to the GIL Board from Randall M. Lipshutz, Esq., the homeowner group's attorney, can be viewed, below.  Note that if you are unable to view the letter in-line on this Web page, simply click the link below to open the letter in a new browser window.

Document Inspection Letter

She has your money to burn

About a month ago, on January 16, 2012, the Blog ran a post entitled the $3,064 phone call, where we pointed out that our Association was on the wrong rate plan with Georgia Power. In that post, we detailed our analysis of prior and current electricity usage, which indicated a minimum possible savings of $3,064 on the Board's budget for common area electrical expenses over the coming year. We even included the phone number so that they could easily call and switch our rate plan.

Hijacked

Outwardly, they have been the poster children for the archetypal community volunteer and concerned neighbor. But underneath their meticulously crafted public image, tireless self-promotion and thin veneer of volunteerism and community service, has been a nine year calculated endeavor to subvert the democratic will of GIL homeowners by engineering at least one election outright, contorting election procedures in every election, keeping a sharp eye out for new homeowners that can be easily manipulated and by making Board service so untenable for the ones that can’t be that they either resign or decide not to seek re-election.

GIL needs your vote TODAY!

Dear Neighbors-

Many of you have already voted in our online poll, and to those of you, we would like to say 'thank you'.  As of the time this post was published, about a third of you had raised your voice by voting 'yes' or 'no' on the question of whether or not the GIL Board should be required to get homeowner approval before borrowing up to $400,000 in your name.  So far, homeowners have overwhelmingly said 'yes', the Board should seek homeowner approval.

But many of you have not voted yet and we need to hear from you!

The GIL Board is preparing to borrow as much as $400,000 in your name but without any opportunity for input, review or approval by homeowners. And we think that's just plain wrong.

Our By-Laws require homeowner approval for the budget every year - and all but two budgets in the entire history of Glen Iris Lofts were less than $400,000. If the Board spent that money via a special assessment, it would need homeowner approval for a tenth that amount. The Board is exploiting a loophole in our By-Laws that does not restrict the Board's authority to obtain loans to circumvent the implicit requirement found throughout our By-Laws that homeowners should have a say in how much is spent by their Association.

Tell our Board how you feel about being cut out of the process but stuck with all the bills. Vote in our poll on the Main page - just to the right of this article - and SPEAK UP!

Do not forget to VOTE!

The GIL Board is preparing to borrow as much as $400,000 in your name but without any opportunity for input, review or approval by homeowners. And we think that's just plain wrong.

Our By-Laws require homeowner approval for the budget every year - and all but two budgets in the entire history of Glen Iris Lofts were less than $400,000. If the Board spent that money via a special assessment, it would need homeowner approval for a tenth that amount. The Board is exploiting a loophole in our By-Laws that does not restrict the Board's authority to obtain loans to circumvent the implicit requirement found throughout our By-Laws that homeowners should have a say in how much is spent by their Association.

There’s a thief in our midst

All of the brouhaha that has followed 'Cart-Gate' has certainly brought one question in particular more sharply into focus for everyone living here at Glen Iris Lofts.

AND THAT QUESTION IS by what authority is Kit Sutherland running about investigating key finders on carts, authoring ‘community announcements’ in the name of the Glen Iris Lofts Board of Directors (in that headmaster tone like only Kit can do) summoning the Atlanta Police Department to ‘investigate’ delusions of ‘compromised security’ on GIL property, authorizing billable time by Association attorneys and, unbelievably, having the audacity to confiscate utility carts when they are in short supply and desperately needed, when she hasn’t even been elected to serve on our Board for more than three years now? (Continued...)

Election fraud bombshell: 2003 rental cap amendment FAILED

For anyone that still harbors the quaint illusion that GIL elections are fair, honest and accurate, prepare yourself.  The Blog recently obtained a folder that contained the ballots from the February 13, 2003 Annual Homeowners’ Meeting, at which homeowners voted on whether or not to amend the By-Laws to include, among other things, a 25% rental cap.

But an audit of the vote count reveals a startling discovery - the amendment actually failed.  (Continued...)

Dun & Bradstreet Credit Reporting also notes a Sutherland/Miller-Gallman affiliation

Last Monday, the Blog posted a copy of the Hoover's Business Report that noted the alleged affiliation between Kit Sutherland and Miller-Gallman Developers.  We have since been able to obtain a copy of the Dun & Bradstreet Comprehensive Credit Report for "Miller Gallman Developers", that, like the Hoover's report, supports an apparent affiliation between Kit and Miller-Gallman Developers.  Note: The Dun & Bradstreet report is included at the end of this post.

As with the Hoover's report, we wondered why no other executives (namely Jerrold Miller) were listed as having an affiliation with the company.  Upon further investigation, (Continued...)

Next time around, election ballots will list all the names of those wishing to serve

GIL BALLOTS DO NOT LIST THE NAMES OF ALL CANDIDATES  The fact that the those currently on the Board would not add Scott Reno’s name to the ballot in the most recent election – and, in fact, have never placed anyone on the ballot other than those recommended by an incumbent Board, represents an egregious assault on the democratic process and the rights of GIL homeowners.

When buying their home, every member of our Association agrees to bind themselves to the decisions and actions of the GIL Board, and in exchange, homeowners are supposed to have the right to fully and genuinely participate in the governance and affairs of their Association. At GIL, homeowners only get half of that bargain. They become bound by the actions and decisions of the Board but, ultimately, their rights of full and genuine participation in those actions and decisions are not forthcoming.

In future elections, the Board can keep their 'ballot' and save us the $.20 a page CMA copy fee.

WE WILL BRING OUR OWN BALLOTS - ONES THAT FAIRLY LIST ALL THE NAMES OF THOSE WISHING TO SERVE.

Remember: Rules best serve those who make them

OUR BALLOTS ARE NOT SECRET  When the ballot on which you are asked to cast your vote requires your name, unit and building number and contains a written admonishment that ballots that lack such information are ‘invalid’ and will be ‘discarded’, that’s generally a sign that your vote is not secret.

Worse, your secret-to-everyone-but-the-Sutherlands ballot then serves as an excellent tool to accurately determine whom among us is a ‘good resident’ and who needs ‘re-education’ - lest they become an object of scorn, gossip and retribution.

Our By-Laws mandate ‘secret ballots’.  AND SECRET BALLOTS ARE WHAT WE WILL HAVE.

The $3.4 million hayride

According to information presented by the Board of Directors at the most recent Annual Meeting, our Association ended 2011 with $214,035 and it expects to collect $46,106 in reserve additions from assessments over the coming year.  Those two numbers total $260,141 – which doesn’t sound like we would be doing too badly at the end of 2012, does it?

But in order to leave homeowners with that false sense of financial security, the Board had to perform the budgeting equivalent of moon walking – the act of appearing to make forward motion, when in fact, we will be going backwards.  The only difference being that they arguably did it better than the late Michael Jackson ever hoped to do as we will be going backward over the coming year by about three full stage lengths.  How so, you ask?  Because they skillfully left $400,000 that they plan to spend over the next twelve months out of the budget.

  

The Board stated that the more than $400,000 that they expect to spend off budget in the coming year will be for stucco and window repairs.  This trick is not new.  The Federal Government has been doing it for nearly a decade in the way it accounts for war spending, the only distinction being that (Continued...)

Exciting news and an open letter from the founding author of the Blog...

AN OPEN LETTER FROM THE FOUNDING AUTHOR OF THE BLOG

TO THE BLOG’S MANY SUPPORTERS
The generosity of your loyal readership, comments, e-mails and offers of support has been truly amazing, and I thank you.  Apart from making the countless hours required by this endeavor more rewarding, your support has provided incontrovertible evidence that a new day is dawning for our shared community. Your overwhelming support is witness to the well spring of interest, concern and desire to participate that exists in the hearts and minds of everyone here at Glen Iris Lofts. (Continued...)

Glen Iris Farm, Pt. 2: Napoleon gets an attorney

It was always the pigs who put forward the resolutions. The other animals understood how to vote, but could never think of any resolutions of their own.

-George Orwell, The Animal Farm, Chapter 3

THE PROBLEM (Oink)  The only problem with giving people the right to vote is that, all too often, they don’t vote correctly.

THE BACKROOM DEAL  Although the By-Laws specifically state owners are to write the names of those for whom they are voting, what we pigs must do is help them be better Comrades and voters by writing down only the very best choices for them, so they don’t become hopelessly confused and make the wrong choices.

‘But then what shall the purpose of voting be?’ squealed one pig, after pondering the scheme for a moment. ‘So there’s voting!’ boomed Napoleon. ‘And so that people have the opportunity to vote for my wise choices’, he added.  And, then, with a watery snort that misted the air a full three feet in front of his snout, he turned his attention back to the hushed and ominously intense conversation he had been having on the urgent matter of his continued Stewardship of the animals with a very sinister looking pig with nervous, darting eyes and whose eerie ability to move about a room unnoticed reminded everyone of a pig they had known many years ago but whom had not been seen since the day Jones left the farm and it was decided that one pig would go to the city to learn how to read laws and make resolutions and things.

A VIDEO PRIMER  The Blog created this video to help better explain exactly how homeowners were duped into a system where there is voting, but no choice.

THE BARNYARD SCOREBOARD  Pigs 2, Homeowners 0!

 

As long as people continue to accept the Board’s ‘ballots’ as though they are the only 'true' ballot, when, in reality, they are only an artifice specifically designed to ensure that homeowners actually (Continued...)

Glen Iris Farm, Pt. 1: The rise of Napoleon and the Stewardship of pigs

They had come to a time when no one dared speak his mind, when fierce, growling dogs roamed everywhere, and when you had to watch your comrades torn to pieces after confessing to shocking crimes.

-George Orwell, The Animal Farm, Chapter 7

PROBLEM (Oink!) Too many homeowners participate in the Annual Meeting in February and, to make matters worse, they are watching their money more closely, after having over-spent during the holidays.  This untenable situation simply creates too much unnecessary risk to our eternal Stewardship of the poor animals – and they need us!

BACKROOM DEAL  Move the Annual Meeting from the middle of February, as the By-Laws clearly appoint as the time for the Annual Meeting, to the middle of December. ‘But people are so busy around the holidays!’ squealed one pig. ‘Oink, that’s the point’, grumbled another.

COVER STORY  By moving the meeting to December, you also make the new year's budget official starting January 1, as opposed to March.  As a result, the the new monthly assessment amount can be collected on a schedule that's more closely aligned with the budget and our fiscal year.

COVER STORY FACT CHECK  From a budgeting perspective, there's nothing more ‘magical’ about January than December.  If the two months present different levels of expense or income, then you plan for that - that's the purpose of a budget!  Contracts with vendors expire at staggered periods throughout the year, depending on the month they were first signed, so it isn't like our expenses are all radically different in January than they were the month prior.  And even with a December budget adoption, the marginal increase in revenue (this assumes every budget is bigger than the last because, I think everyone would agree that's the pretty much the norm anymore) comes only one month sooner than it would have otherwise – and we have sufficient working capital to cover well beyond the incremental new revenue represented by just one month’s assessment increase.  As for alignment with the fiscal year, whats so difficult about budgeting January and February with what you know will be the revenue and then budgeting the remaining ten months with what the new revenue number will be?

A change in the budget process that would make more sense than bumping forward its approval would be to construct it in an orthodox manner where 'pine straw' isn't its own budget category, but, rather, is included in a 'Landscape Maintenance' category. (Continued...)

Letter to Georgia State Attorney General: Board’s refusal to provide financials at annual meeting violates State law

Refusal by the GIL Board of Directors to make Association financials available to members upon request is nothing new to homeowners at Glen Iris Lofts.  Despite the fact that such refusal violates provisions of the GIL By-Laws and despite the fact that such refusal appears to be a violation of State law, the Association’s balance sheet, income statement and other important documents detailing the financial health of the Association have, for years, been off-limits to homeowners.

Why the lack of transparency?  One can only speculate, but, according to a copy of a letter obtained by the Glen Iris Blog, it’s the subject of a complaint recently made to the office of Samuel Olens – the Attorney General for the State of Georgia.  The letter maintains that the Board’s long-standing refusal to make Association financials available to members – most recently at the Annual Meeting – is a violation of State law. The letter specifically cites Georgia Code Sec. 44-3-230 – a section of the Georgia Property Owners’ Association Act - that states:

“At the annual meeting, comprehensive reports on the affairs, finances, and budget projections of the association shall be made to the lot owners.”

-Georgia Code 44-3-230

The letter also raises the concern that such a long-standing and steadfast lack of transparency on the part of the Glen Iris Board may be the result of financial malfeasance or misappropriation of Association funds that could be on-going for nearly a decade – with possibly devastating financial repercussions for the 110 Georgians who call Glen Iris Lofts home.

Stay tuned, neighbors…

 

Kit Sutherland: Speak up or stand down

Many homeowners are unaware that Kit Sutherland has been - and continues to be - acting in an official capacity for our Association, despite the fact that she has not been elected to do so by the members of the Association in the last election or the one prior. 'But I thought you have to be elected to serve on the Board' you say. True, you do have to be elected to serve as a Director. But here's where a little loophole in our By-Laws comes in handy. The Board, at it's discretion, can appoint 'Community Officers' - which is exactly what they did with Kit Sutherland. And, as long as the Board is the only entity that determines what names get on the ballot for Director positions, the Sutherlands can make sure they have a Board that is not entirely independent, but, rather, beholden to them.
But those are the rules, and it wouldn't be so egregious if it didn't produce the very undemocratic result of people acting in official capacities on our behalf that answer to no one but the Sutherlands - or in the case of Kit - answering to nobody at all for anything.

And Kit has proven that she answers to no one - especially not commoner homeowners. Despite the allegations that she has had, and continues to have, improper ties with the developer, Kit Sutherland has not said one word on the matter to homeowners publicly. No simple denial. No nothin' - nada, zero, zip, zilch.

And why would she? (Continued...)

Sutherlands hire high-profile attorney amid fraud allegations

Well, it looks like Christmas dinner might not be the only thing heating up in the Sutherland kitchen this year!  I received an e-mail today from a homeowner revealing that, amid allegations of fraud surrounding their alleged business ties with well-known Atlanta developer Jerrold Miller, Stuart and Mary ‘Kit’ Sutherland have recently hired high-profile Atlanta attorney Katherine Hernacki.

According to her firm’s Web site, Ms. Hernacki has ‘handled several high profile matters including...

representation of Richard Jewell in matters arising out of reporting about Mr. Jewell in connection with the bombing of Centennial Olympic Park in Atlanta, (Continued...)

Latest election of Board members not valid, according to GIL By-Laws

According to the GIL By-Laws (as amended, 2003), the latest election held to fill the number of vacant Board positions at the Annual Meeting was not valid as it violated several provisions governing elections set forth in section 4.07 'Procedure for Election' (Section 4.07 in its entirety included with this post, below).  Specifically, the recent election violated the By-Laws as follows:


1.  The By-Laws do not accommodate voting in advance of the meeting.  Accordingly, any ballots that were mailed to Maggie at CMA prior to the Annual Meeting are not valid.

"Election of Board of Directors shall be by secret written ballot, unless dispensed by unanimous consent, and at such election, members or their proxies may cast..."

Notice the By-Laws do not accommodate voting prior to such election. The votes for Board positions sent prior to the meeting to Maggie at CMA are invalid as they were not voted at the election.


In fact, advance voting is not possible under the current By-Laws as those casting votes are required to list the names of those for whom they wish to vote after the completion of the nomination process, which takes place, according to the By-Laws, at the annual meeting itself.  See issue two, below. (Continued...)

Board President left holding the bag...of bird shit

If, after nearly 10 years of what I believe to be the Sutherland’s stunts, dirty tricks, shenanigans and otherwise enrolling others in their favorite game – the one they excel at like no other – pitting one homeowner against another, there are any homeowners still naïve enough to think that the Sutherlands aren’t still fully in control of the Glen Iris Board - titles be damned - then one discussion in particular at the Annual Meeting would have surely convinced the last of the non-believers.  It was, of all things, the discussion about bird poop.  Yes, you read correctly, bird poop.

So, there everyone was at the meeting and the subject of the nasty bird nests in the ceilings of the Phase I and Phase II garages came up.  That’s when you saw Stuart slowly slink to the background and stand quietly by, allowing poor Yoel Bakas, the current Board President, to lead the discussion - and make a fool of himself by being only half-informed – just the way the Sutherlands like ‘em.

Here’s the 411 on the bird poop. (Continued...)