AWAC BOD Annual Meeting Regarding Director Scott Nominating Himself For President & 2025 CCRs Renewal. 8-9-2023. Lake Arrowhead, CA.
AWAC Annual Meeting August 9 2023. President Richard Scott nominated himself and was voted President. The 2025 CCR renewals were also discussed.
AWAC March BOD Special Meeting Regarding Unilateral Appointment of 3x New Directors. 3-7-2024. Lake Arrowhead, CA.
AWAC held its first meeting for 2024 where things got off to a bumpy ride and then quickly proceeded to go off the rails. The In-Person Audience were greeted to approximately 8 chairs for seating while the Zoom Audience as Mick Jagger put it "could get no satisfaction" whatsoever. The Zoom Computer in the room was turned off. Then turned on, then turned off again, then no one could log on initially and finally no one could raise their hands to comment. Many waited for 30 minutes but were prohibited from joining the meeting.
The meeting revealed that Mr. Richard Scott, the previous President of AWAC, Inc. had resigned in writing in 2023 yet was able to return and unilaterally hand pick three new board directors all by himself. The three new directors hand picked by Mr. Scott were Mr. Michael Schultz, Ms. Michelle Kelly, and Mr. Greg Amparano.
Coincidentally, Mr. Scott explained that he did not live in Arrowhead Woods and that there was no requirement for officers and or directors to be residents of, or even own property in Arrowhead Woods. Furthermore, Mr. Scott explained that as the President, he is compensated for conducting inspections of Woods Properties at a rate of $40 to $80 per inspection. In 2021 AWAC's tax returns listed Mr. Scott as receiving 1099 compensation in the amount of $30,775 averaging 2.0 hours of work per week, which equals to approximately $320 per hour. Going forward, banking transactions for AWAC, Inc. will also be handled by Mr. Scott. It was ultimately stated that AWAC's 2022 tax returns have been filed and that 2023 is on schedule.
The audience members in the room were shocked by the many revelations that transpired. Most notable was Mr. George Hatt who discussed his deceased wife whose death he attributed to the stress she suffered as a result of AWAC, Inc. going after him for cutting down a dead tree as recommended by CalFire.
Many questioned the authority of the current individuals administering the meeting and concluded that the actions of the board were null and void.
AWAC April BOD Regular Meeting. 4-18-2024. Lake Arrowhead, CA.
AWAC May BOD Regular Meeting. 5-9-2024. Lake Arrowhead, CA.
AWAC, Inc. held its May 9th 2024 meeting where things reached a boiling point. Property owners questioned the board's authority with less than the required 7 board members as well as the demand for the existing board to investigate under reporting of income for previous tax years. Crystal Upton, the previous executive director of AWAC, Inc. was in the audience and stated, among other things that the 2010 ballots were in AWAC, Inc.'s possession as of 2023 and repeated the prior allegations by others of AWAC, Inc.'s misappropriation of public funds.
Various questions were asked by property owners, to which Richard Scott and/or his office assistant Jennifer Silvestri responded that the answers would be sent by email. Various property owners objected to and/or laughed at that response.
Below are links to videos clips of the exchanges between Property Owners & AWAC, Inc.. We have put asterisks on the exchanges which we found most important. Since AWAC, Inc. provides no videos of its meetings, we have provided the video links below as a courtesy to the Arrowhead Woods Property Owners.
1. Mr. Hatt asked about AWAC’s tree permitting process and the requirement for surveys which cost over $1000 which would make it difficult to create defensible space in case of a fire.
https://youtu.be/g1jL5kbqd4U?feature=shared&t=610
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2. Mr. Smedley raised the issue that the board is refusing to answer the audience’s questions and the response given was that answers would be given by email at a later time.
https://youtu.be/g1jL5kbqd4U?feature=shared&t=708
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3. Mr. Hatt came close to being escorted out of the AWAC meeting.
https://youtu.be/g1jL5kbqd4U?feature=shared&t=773
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4. Mrs. Ross questioned signs that had been nailed to the trees around her neighborhood and if AWAC was going to have them removed and Mr. Scott stated he would address it later.
https://youtu.be/g1jL5kbqd4U?feature=shared&t=799
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***5. Mr. Vartanian reminded the board that they owe a duty of care and duty of loyalty as board members and informed the board that the there was approximately $30,000 of income under reported on AWAC’s 2019, 2020 and 2021 tax returns.
https://youtu.be/g1jL5kbqd4U?feature=shared&t=1089
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***6. Ms. Upton, AWAC’s former executive director, brought up issues of previous misappropriation, AWAC’s lack of 7 board members and the existence of the 2010 ballots that AWAC claims are missing. Ms. Upton stated that she never approved or believed it was the right decision to hire the new “office assistant” for AWAC. Mrs. Scott’s response was that her time was up.
https://youtu.be/g1jL5kbqd4U?feature=shared&t=1356
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7. Mr. Naraghi asked about the existence of the 2010 ballots and if Mr. Scott knew their whereabouts. Mr. Scott stated the last time he saw the ballots were in a lawsuit adjudicated in 2015.
https://youtu.be/g1jL5kbqd4U?feature=shared&t=1695
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***8. During Mr. Scott’s response to Mr. Naraghi questioning the missing ballots, Ms. Upton added that the ballots were available, they were not lost and why was Mr. Scott lying about that fact.
https://youtu.be/g1jL5kbqd4U?feature=shared&t=1793
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***9. Mr. Heyck warned the three new board members that if they didn’t investigate the missing ballots and the allegations of prior misappropriation that they could possibly be held personally liable in future proceedings.
AWAC May BOD Regular Meeting. 5-30-2024. Lake Arrowhead, CA.
AWAC, Inc. held its May 30th 2024 meeting where major announcements were made regarding selection of corporate officers, the missing CCR renewal ballots of 2010, and the possibility of a forensic audit to account for the previous 5-6 years of financials.
The AWAC, Inc. meeting, consisting of only four directors, began with the announcement of the officers being selected. Mrs. Michelle Kelly was picked as the President, Mr. Greg Amperano was chosen as Vice President, Mr. Michael Schultz was chosen as the Secretary and Ms. Patti McGonigle was picked as the Treasurer.
The first major announcement of the evening was that Mr. Richard Scott, the previous President and Director of AWAC, Inc. had tendered his resignation but would continue on as the paid inspector of AWAC, Inc.
The major revelation of the evening was that the 2010 CCR renewal ballots had finally been located. Mrs. Kelly, the new President, stated that the board acknowledged that individuals who held leadership roles within AWAC, Inc. had publicly stated several times that the ballots could not be located and did not know why those misstatements were made. Moving forward, Arrowhead Woods Property Owners will not be given the complete ballot set to their respective tracts but can make an appointment to check their individual signature. We were hoping that the new board, in the spirit of transparency, would allow property owners the opportunity to audit their entire tract.
The board then announced that due to several factors that have come to light, AWAC, Inc. is in discussion with an Auditor/CPA to conduct a forensic audit of AWAC financials over the past 5 to 6 years. A cost benefit analysis would be carried out for feasibility purposes.
The meeting concluded with the directors comments where Mrs. Kelly, the AWAC, Inc. President stated, "We are making changes at AWAC that are responsible and responsive...We are committed to creating a more inclusive organization and one that embraces truth, transparency and engenders trust. We will continue to battle the battle against misinformation. Most recently, misinformation included a gross exaggeration of the premium paid by AWAC for the 2024-2025 directors and officer's insurance and the amount of a retainer paid to a local attorney last July for an AWAC project. Alleged AWAC spreadsheets are also circulating which have no identifiers, no indication whatsoever that the spreadsheets contain AWAC information and no author. It is our firm belief that those spreadsheets cannot be trusted."
Mrs. Kelly then discussed the previous construction deposits that were collected with a large portion not being reimbursed back to the property owners. Moving forward, a separate check would be requested for the deposit and the amount would be segregated in a separate bank account and not placed in AWAC's checking account. The meeting concluded with the board going into closed session.
The following day, Arrowhead Woods Informed forwarded to the board, its own board minutes from May 12, 2022 which contained the spreadsheets in question and informed the board that the spreadsheets can be "trusted" and have "identifiers." A second request was made for the board to investigate the under-reporting of income found in AWAC, Inc.'s tax returns for the previous years.
1. Mrs. Halstead questioned the status of the construction deposits that were previously collected by AWAC, Inc. and what authority AWAC, Inc. had to charge more than the $50 plan review fee that is specifically written in the CCRs of her tract.
https://youtu.be/5xTS_zB1pLo?feature=shared&t=873
2. Mr. Vartanian questioned the AWAC, Inc. staff report which showed the filing of recent tax returns yet there were no annual final budget sheet for the year and how it could be possible for AWAC, Inc. to file the return without a final budget sheet for the year?
https://youtu.be/5xTS_zB1pLo?feature=shared&t=1019
3. Ms. Upton questioned how AWAC, Inc. could conduct business and choose corporate officers with only four individuals when the bylaws require seven directors to function.
https://youtu.be/5xTS_zB1pLo?feature=shared&t=1224
4. Mr. Naraghi asked about the missing 2010 CCR renewal ballots and how the current board of four could continue when three of the four were hand picked by Mr. Scott, the previous President who had resigned in writing.
https://youtu.be/5xTS_zB1pLo?feature=shared&t=1668
5. Mr. Halstead, a prominent attorney, advised the board that the forms/ballots they intends to use for the 2025 renewal may lead to litigation based on the manner in which they were drafted as well as the lack of notarization of the property owner's signatures.
AWAC June BOD Regular Meeting. 6-20-2024. Lake Arrowhead, CA.
AWAC, Inc. held its June 20th 2024 general board meeting which lasted a total of 7 minutes. Ask an uncomfortable - yet relevant question and the meeting is immediately shut down. Arrowhead Woods property owners were left speechless questioning why current board refuses to address the concerns of the homeowners and simply answer questions. So much for creating a more inclusive organization, and one that embraces truth, transparency, and engenders trust.
The meeting consisted of three board members which lacked the requisite quorum of four under the bylaws for the transaction of business at any meeting of the board of directors and therefore no agenda items were discussed. One wonders how the lack of quorum would end a board meeting yet allow the selection of directors and the appointment of officers.
1. Mr. Smedley questioned the status of varying tracts/lots which were previously released from AWAC's control for valuable consideration. Immediately following the question, a vote was taken and the meeting was abruptly adjourned.
AWAC August BOD Regular Meeting. 8-22-2024. Lake Arrowhead, CA.
AWAC, Inc. held its August 22nd Zoom only meeting with no in-person audience where major announcements were made regarding the new handpicked board, the selection of corporate officers, and Tract 8053 gathering enough signatures to remove AWAC, Inc. as the architectural committee as well as reclaiming their water rights. Unfortunately, following the meeting, many members of the community had sent us messages that they were once again unable to log into the Zoom meeting.
I. New Board Members.
Mr. Michael Schultz, the lone remaining board member who was himself appointed by Mr. Richard Scott who had resigned in writing and then unilaterally returned, introduced his new hand picked board. Mr. Schultz made no mention of or gave thanks to the three previous board members (Patti McGonigle, Michelle Kelly and Greg Amparano) who had abruptly resigned under mysterious circumstances leaving him as the only one remaining.
The five new alleged directors hand picked by Mr. Schultz were Mr. Gary Clifford, Mr. Brian Hall, Mr. Scott Rundle, Mr. Jim Taylor, and Ms. Jennifer Devine.
The AWAC, Inc. meeting, consisting of only six alleged directors, continued with the announcement of the officers being selected. Mr. Gary Clifford was picked as the President, Mr. Brian Hall was picked as Vice President, Mr. Michael Schultz was chosen as the Secretary and Mr. Jim Taylor was picked as the Treasurer.
All of the agenda items, including presenting the new re-written 2024 bylaws were tabled for the future. AWAC's current bylaws require that in order for AWAC, Inc. to act as a corporation it must have 7 existing board members of which 4 (a quorum) are necessary to call a board meeting and conduct business otherwise a partnership is in effect. The current board comprises only of 6.
II. Tract 8053 removes AWAC, Inc. as the architectural committee and prevents them from ever selling their water rights.
In other news, Mr. Behn Naraghi gave in person notice to the current six alleged board members informing them that he had successfully collected sufficient signature ballots from the record property owners in Tract 8053 located by the golf course removing AWAC, Inc. as the architectural committee over Tract 8053. The property owners of Tract 8053 now own the full rights to their properties with no restrictions. Now that the property owners have regained their water rights, AWAC, Inc. can no longer sell those rights to LACSD or to anyone else.
1. Mrs. Halstead questioned the status of the construction deposits that were previously collected by AWAC, Inc. and what authority AWAC, Inc. had to charge more than the $50 plan review fee that is specifically written in the CCRs of her tract. Most of the CCRs provide for AWAC to collect only a $50 plan check fee for limited modifications and improvements in limited tracts. The CC&Rs do not provide for them to collect permit fees, damages, inspection, etc.
https://youtu.be/VPj_ppRfH0w?feature=shared&t=411
2. Mr. Kearn asked why he hasn't received his construction deposits back and why is it that AWAC does not refund construction deposits automatically. Hopefully he will get it back as the former president, Michelle Kelly promised and the new office assistant promised to look into.
https://youtu.be/VPj_ppRfH0w?feature=shared&t=597
3. Mr. Vartanian questioned the AWAC, Inc. board about the under-reporting of the tax returns compared to the annual AWAC, Inc. budget sheets and what steps this new board was going to take to investigate the allegations of previous misappropriation.
https://youtu.be/VPj_ppRfH0w?feature=shared&t=782
4. Mr. Smedley asked What Insurance Company is the board's Errors and Omissions Binder with and who was involved with the Past and Current Amendments of the AWAC's Bylaws?
https://youtu.be/VPj_ppRfH0w?feature=shared&t=1089
5. Ms. Upton questioned the amount of deposits AWAC, Inc. had remaining in their bank account as well as why they are retaining property owner's construction deposits. She urged Arrowhead Property owners not to give any money to AWAC, Inc.
AWAC September BOD Regular Meeting. 9-25-2024. Lake Arrowhead, CA.
