The Comcast Cable contract that was recently approved by the BCC Board of Directors and signed by Board President Slota, was, in fact, negotiated by a company called Communications Consulting Group, CCG for short, under a contract signed in September of 2008. This company (CCG) is a “savings contingent” company which is compensated for its efforts to negotiate lower cable rates than proposed by Comcast by receiving 25% of all savings achieved.
Under the terms of the contract there are two areas of savings. First there is a one-time $128,000 “sign-up” bonus for BCC agreeing to a 10 year contract, and second there is a reduction in the monthly rate per unit over the ten years of the contract. Under the terms of the contract with CCG they are entitled to 25% of both the “sign-up” bonus and 25% of the savings for the next ten years.
As Shakespeare said, “ay, there’s the rub”. The payment to CCG for the “sign-up bonus” is not a problem since it will be paid for out of the bonus itself, but since savings don’t generate cash, all the payments due for savings in the out-years, a total of more than $89,000, will have to come from the quarterly maintenance assessments. To my astonishment, this came as a complete surprise to all the other Board members. You have to wonder, did anyone actually read the contract before it was signed?
Now there are two responsible ways to solve this problem. The first is to take the net “sign-up” bonus of $96,000 ($128,000 minus CCG’s 25% or $32,000) and put it in a protected bank account which cannot be used for any purpose but to pay off the future obligation.
The second, and preferred, strategy is to negotiate a discounted, up-front payment to CCG which would extinguish the debt now. Depending on the discount rate used this could be in the $60,000 to $70,000 range and would assure that future Boards can’t raid the bank account for other purposes.
To be completely clear about this, if the Board spends the $96,000 for current expenses or unbudgeted improvements like updating the rec center bathrooms, future homeowner are on the hook for $89,000 in payments over the next ten years.
I’ve polled my fellow Board members for agreement with one of the two approaches and asked that it be placed on the agenda for the September meeting and have heard nothing, which leads me to believe that the Board wants to keep this under wraps and proceed with business as usual. This is just not acceptable.
Bill Brady
Secretary, BCC
Under the terms of the contract there are two areas of savings. First there is a one-time $128,000 “sign-up” bonus for BCC agreeing to a 10 year contract, and second there is a reduction in the monthly rate per unit over the ten years of the contract. Under the terms of the contract with CCG they are entitled to 25% of both the “sign-up” bonus and 25% of the savings for the next ten years.
As Shakespeare said, “ay, there’s the rub”. The payment to CCG for the “sign-up bonus” is not a problem since it will be paid for out of the bonus itself, but since savings don’t generate cash, all the payments due for savings in the out-years, a total of more than $89,000, will have to come from the quarterly maintenance assessments. To my astonishment, this came as a complete surprise to all the other Board members. You have to wonder, did anyone actually read the contract before it was signed?
Now there are two responsible ways to solve this problem. The first is to take the net “sign-up” bonus of $96,000 ($128,000 minus CCG’s 25% or $32,000) and put it in a protected bank account which cannot be used for any purpose but to pay off the future obligation.
The second, and preferred, strategy is to negotiate a discounted, up-front payment to CCG which would extinguish the debt now. Depending on the discount rate used this could be in the $60,000 to $70,000 range and would assure that future Boards can’t raid the bank account for other purposes.
To be completely clear about this, if the Board spends the $96,000 for current expenses or unbudgeted improvements like updating the rec center bathrooms, future homeowner are on the hook for $89,000 in payments over the next ten years.
I’ve polled my fellow Board members for agreement with one of the two approaches and asked that it be placed on the agenda for the September meeting and have heard nothing, which leads me to believe that the Board wants to keep this under wraps and proceed with business as usual. This is just not acceptable.
Bill Brady
Secretary, BCC
22 comments:
For additional details and opinion, go into column on left and, under "Links" click on "Delaney Letter to BOD" and, after reading letter, go back to blog, "Links" and click on "Watchdog #7".
Well - well - well - just what we suspected! And now BCC is stuck paying $89,000 to subsidize Sam Slota's giant EGO-TRIP. The five Board members who support him could be in trouble too, if Bill Delaney's complaint goes somewhere, which I hope it does! People like Jason and Rochelle could be in BIG trouble - they hold licenses for their professions. Rochelle especially could be in deep doo-doo; when I was in Real Estate twenty years ago (not in Florida), we had to post a $20,000 bond in order to get our Realty License (after all, you do have keys and access to people's homes) ... the Board is guilty by association and this is FIDUCIARY IRRESPONSIBILITY - she could lose her license and forfeit any bond she might have posted. I wouldn't want to be in HER shoes right now! Sam has really "done a number" - not only on the residents of BCC - but also on his own Board! Couldn't happen to a better bunch of idiots. I think that those five Board members should ... no, MUST! ... resign - FS 718 allows the remaining two HONEST STRAIGHT-FORWARD Board members to appoint new members to replace the ousted ones. A situation "devoutly to be desired"!
Kudos, Bill Delaney! Grab the ball and run with it to the max!
The Board better pay attention to what Bill Brady said - and damn well vote to negotiate that upfront one-time payment to get BCC out from under this Sword of Damocles.
On another note: WHY THE HELL do they want to outsource our janitorial service??? It's been tried twice in the past few years and we ended up with a lousy deal. These two guys - which work for US (not an outside company) do the best job of any since I've lived in here - they clean the doors and side windows every time - there isn't a cobweb in sight. I DON'T want strangers in here (who probably live under a bridge at night!) coming in MY community and trotting freely through the buildings! With the lousy Security system we have right now, I see nothing but trouble for BCC.
Of course, then the Board would feel free to fire yet ANOTHER couple of our maintenance guys - and it WON'T save us a dime! Eventually, we won't have any maintenance guys left and then they'll outsource THAT too!
AND they want to get rid of our CPA - why? because she knows exactly what illegal things this Board and the SRD have pulled on the community. They want to bring the money back where they can get their filthy mitts on it - kickbacks aren't enough for these sorry excuses for human beings.
I thought that United Community was bad - but these people are - unfortunately! - our neighbors, for god's sake! With "friends" like THAT - who needs enemies???
I hope that Bill Delaney manages somehow to get the whole bunch in big trouble - and FAST! - so that we can't get rid of this cancer in our community!
I have good idea. Make Mr. Slota pay $89,000 out of own pocket. Then kick bum out, along with so dumb Board members. (But only five Board members. Keep two good ones - they let us know what others won't.) Simple, no?
Got Watchdog 7 and have been reading other reports on Sam Slota's HUGE fraud on the residents of Bay Colony Club. I can't believe that the Board could allow him to take us to the cleaners like that. We need an all-NEW Board this February. I would like to see Sam Slota with a nice not-too-comfortable jail cell in the near future.
Now I know why Sam Slota's eyes are brown ... HE'S FULLA SH*T!
Ivan - you not only have a "good" idea - it's an EXCELLENT idea! Make Sam pay the $89,000 and if he won't, let's railroad him into jail with Bill Delaney's help! I object to paying $89,000 for his "ego-trip", but it would be WELL WORTH the $89,000 to see Slota in jail. That's where lying CROOKS belong!
If this Board doesn't oust him as President (maybe they could also twist his arm to resign!?), then they belong in that jail cell to keep him company.
And Xmas Carol - I'm SO glad that MY eyes are BLUE!!! LOL
My fondest scenario:
Rochelle loses her Real Estate license;
Jason loses HIS license;
Sam goes to jail for ... oh, about 30 years;
George slinks off into the darkness (can't be too hard on a stupid old fogey); and
Pete ... ah - let's see what we could arrange for him ... tarring and feathering? a pillory outside Rec. 2 (I'll supply the rotten fish and tomatoes) ... or maybe just share Sam's cell?
And Wilbur and Bill are free to appoint some DECENT people until the election. (I hope you will consider running again next year - we NEED people like you two.)
If there's a God in heaven, please grant me this wish!
Residents of BCC - if we allow this Board to fire our CPA, then you damned well deserve whatever you get! These crooks will grab all they can: it's never too late to add to their retirement fund!
Heard an interesting theory from my neighbor, who has lived here longer than me. He claims that Sam regularly fires people whether or not they are doing a good job. He said that Sam's wife controls all the money; apparently she got a big inheritance. Sam is retired and has no income. Maybe his wife doesn't give him enough "allowance", so he hires someone new and takes a kickback for pocket money.
This theory is just crazy enough to be true.
So the CPA has to go and so do our janitorial guys.
If it's true (who could prove it?), then we are subsidizing Sam's big Lexus and too much good food (judging from the size of his belly).
WHY was the Board Meeting for September 8 cancelled??? This Board MUST answer to the residents on this Cable TV contract.
This is ridiculous that they are ducking the issue.
Bunch of cowards! They HAVE to hold a meeting - and SOON - it's already been three months - they can't put the evil day off forever. And by god - we'll be ready for them! I'll bet there'll be a turnout - SRO - like they haven't seen before!
Or, as someone suggested, is Sam Slota afraid to face the music and is trying to get that CCG guy in to back him up (or at least carry some of the blame - maybe he'll claim he didn't understand? HA! then he shouldn't sign something he doesn't understand!) - and I'll bet he pays that damned lawyer (MORE wasted money!) to be there to protect his fat butt!
Someone want to start a petition to sue this Board?
I'll sign - gladly! Maybe if we pool our money, we could hire our own lawyer - these government agencies work too slowly. Look at the damage this crooked Board could do to us between now and February's elections!
I hope this Board realizes that their Directors' insurance will NOT cover their legal expenses if they are sued for fraud and mismanagement of the Association's monies.
I seriously doubt if attorney John Stevens would be stupid enough to represent them - after all, although he'll do anything for money, honey ... HE isn't as stupid as this Board is in trusting "one of their own"!
It will be SO interesting to see just how this situation plays out over the next few weeks. It reminds me of Americans finally rising up over this health-care situation. Voices are now being heard - and "they ain't gonna take it no more".
See, folks - there IS safety in numbers - and there are definitely MORE of us than there are of them.
"United We Stand".
IF and WHEN the next Board Meeting is called, I want to see THIS Agenda posted:
(all the usual stuff down to "Old Business: - but with Joanne THERE giving the Manager's Report)
followed by Vote for Officer Change (Sam is ousted)
Under Old Business:
Under the first item - CCG/Comcast Update - the Board votes to negotiate (perhaps Bill Brady does this?) a one-time upfront payment to CCG to pay off that $89,000. It would be nice to see Wilbur get another crack at being President, and Bill (now that he's here) could take over the Treasurer's spot (hell - make him VP too - Jason did it once before on Lesley's Board!)
And there is NO "New Business - NO firing of our cleaning guys (they're the BEST!) and NO interviews to replace our CPA - We WANT to keep her. The CPA's contract is up Dec. 31 - only 6 weeks before a NEW Board comes in as a result of the February elections. This NEW Board should not be saddled with something they don't want.
Of course, it would be even more desirable to see an Agenda whereby the remaining Board accepts the resignations of Sam, Rochelle, Pete, George and Jason!
Sam Slota:
FRAUD
Guilty
Jail
Board of Directors:
Stupid
Guilty by association/commission
Fined (oops! no Directors' insurance)
BCC Residents:
Vindicated
Satisfied
Happy
We residents owe a great debt of gratitude :
to Wilbur Bullock for releasing details of that illegal Employees Confidentiality Agreement, and suffering the castigation by the other Board members, and
to Bill Brady for putting the work into figuring out that we got defrauded (and for supplying that chart to Watchdog - why wasn't it included in the Blog? it laid it all out in black and white exactly how it "worked") and alerting everyone to the implications of that terrible CCG contract, and
to Bill Delaney for being civic-minded and starting the ball rolling toward a criminal investigation by the Attorney General (hopefully culminating in charges being laid).
Our heartfelt thanks, gentlemen!
I'm a snowbird.
I've had a feeling that things were bad, but I had NO idea that they were THIS bad.
I hope all those idiots who voted these amoral people into Office are ashamed and that they don't make the same mistake in the next election!
Think for yourself - there is NO FREE LUNCH.
Ask the next candidates for office EXACTLY what they plan to do FOR you and for BCC. We don't want power-hungry dictators running our community the way they want and ignoring all laws - both of decency and legal.
If they mutter empty promises that they will create a "better" Board, they aren't what we need or want. A bad Board member won't do FOR you - he'll do TO you!
And if he doesn't like our manager Joanne - DON'T give him your vote!
Omigawd .........
WHAT a tempest in a teapot!
The Board of Directors should not have cancelled the Meeting. An explanation needs to be given to the residents, otherwise things will progress beyond what is necessary.
A meeting should be called immediately - and ALL Board members must be there.
This situation points out that our State condo law and Agencies that supposedly protect condo residents are useless.
There needs to be something better than DBPR - which takes MONTHS to "do something" and will accept any lying excuse letter from a bad Board.
We need some kind of law that allows residents to IMMEDIATELY remove bad Board members within a month or less, without having to go through the long-drawn-out process of "Recall" which can also take months like DBPR action.
A simple Government form that requires only a requisite number of signatures by owners would be a good start.
These terrible people can do untold damage to our community before we can get them out - the election is ANOTHER SIX MONTHS AWAY!
By their own Agenda, they want to fire our janitorial staff;
they want to fire our professional CPA - and they are substantially refusing to let us see ANY financials except for "bare-bones" reports.
I can see why getting on the Board appeals to crooks - they can literally get away with whatever they want!
Vote for them, and then go home - they don't need you any more for a whole year. Speak up and you get harassed, intimidated, and possably vandalized (a neat way to ensure that people will stay shut up!).
With these people in control - how do we know that the next Election will be honest? If they want to stay in office, they will simply rig the election (as I think happened two years when this bunch FIRST got into office)!
Damned if you do - and damned if you don't.
We MUST break this stranglehold these people have on our community.
When United Community was managing BCC and Rochelle was President and making all kinds of frivolous rules, BCC saw an UNPRECEDENTED 134 unit sales in one year, where before, we NEVER saw more than about 3 dozen a year. People wanted OUT. We can't do that now with the market so depressed - we can't afford taking a beating. If the market WAS good, I think you'd see this record of 134 sales broken and left in the dust.
IF and WHEN this Board calls their next Board Meeting, I think everyone who lives here MUST come out and voice our displeasure and disapproval by whatever means we can!
According to the State of Florida Condo Law FS 718 #7.8.112(d)3, only 20% of the eligible owners must cast a ballot in order to have a valid election for members of the Board of Directors.
For BCC, that means only 1/5 of the owners - or 128 - votes are needed.
If this few votes can put a bunch of assholes like we now have into Office, then why does it need a majority plus one (351 votes) to get them out (by a Recall)?
The law in this regard is completely unfair.
We vote 'em in - we should be able to vote 'em out just as easily.
I also think that residents should be allowed to call an election with the same number of signatures as needed for a Recall Petition - 10% (64 signatures).
Why should we be stuck for a whole year with a bunch of misfits who are running our community into the ground?
They are making a mockery of the Condo Law - and also of the State Law that FORBIDS harassment of employees.
This Board is disgusting.
This Board of Directors has a record that can't possibly be equalled.
Pete Shelton thinks that Jason Katz is doing the audit, and Jason thinks that Pete is doing it. (Pete - with all his so-called "financial brains" - had SIX weeks before the election to start on it - before Jason became Treasurer). So we got our audit months late.
But the worst catastrophe - they allowed Sam Slota, of all people, to have sole jurisdiction over the Cable contract through CCG! I wonder just what percentage HE got as a kickback?
I'd also like to know why Saundra Zubko didn't have better control over her puppet Sam? (Oh yeah - we ALL know that she runs that Board and has done so for the past two years! Sam admitted that he had to roll over and do as she said or she'd have the Board vote him out as President. He wanted that empty title SO bad ...) I've never seen a "control freak" like Saundra - she makes Castro look like custard pudding .....
We residents would have to be REALLY insane to vote in a bunch worse than these.
Questions I would like answered:
The CCG Contract was signed by Sam Slota last fall:
Did ANY of the Board members see that Contract at any time before signing?
Did the lawyer check it out before signing? If not, WHY NOT? and if yes, did he simply "rubber-stamp" it ("Oh yes - it's okay - all the i's are dotted and all the T's are crossed.")
WHEN did ANY of the Board members see an actual copy of that CCG Contract?
I gather that the terms of the contract are substantially different from what was presented; presented to WHOM? Did the Board get the same dog-and-pony-show that the residents got?
I also understand that the original Comcast Contract was to be for only 7 years - but it suddenly got changed to TEN years. Of course, this puts a MUCH bigger reward in CCG's pocket due to the bigger sign-up bonus - and BCC is on the hook for a further 3 years than originally thought.
A disturbing thought: a LOT could change in those ten years - newer & better technology - or perhaps the Government will nationalize media services - where are we then?
Unfortunately - a signed contract is legal and binding - no matter which idiot signed it.
DOES THIS BOARD INTEND TO DO ANYTHING ABOUT THIS? Do they intend to leave Sam Slota in as President? Or does Saundra Zubko control enough Board members that the BOD can do nothing about the status quo?
The Election in February will be extremely interesting - both in terms of WHO will run, and WHO will be elected. I doubt if any of the current five idiotic Board members stands a chance - NOR DO ANY OF THEIR SUPPORTERS - ESPECIALLY Saundra Zubko and ANY of the recent SRD members.
(I can just see Saundra prancing around: "Oh vote for ME - after all, I dissolved the SRD for you! Think what I could do for you IF elected to the Board!" YEAH! Not for - but TO us!)
The only way any of these people (or their supporters) could get elected, would be IF they rig the election. I have an uneasy feeling that this was done two years to get the original bunch in - the Election Supervisor was "compromised" and I believe that THIS February we need a WHOLE NEW Election panel and Supervisor. Even better, I would like the Election process totally overseen on the day of the Election - from the time the envelopes get checked to the actual count - by an outside Agency. I want a NEW Election Supervisor and a new panel - and NOT any of the SRD or BOD supporters. I can name at least a dozen and a half women in here that have the brains and the honesty to do a good job.
I am totally outraged over this latest miscarriage of justice - decency - and lack of brains.
Has Bill Delaney heard anything back from the Attorney General's office? Will they go ahead with the criminal investigation of Sam Slota?
We still have SIX months left before the Election.
Would someone PLEASE start a Recall of those horrid five Board members?
The snowbirds are starting to come back (two on our street are already here). It shouldn't be too hard to get the number of votes needed to oust this rotten Board.
I'll bet Rochelle will NEVER get another listing in here (IF she doesn't lose her license!)
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