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Laguna Woods’ CEO Jeff Parker to retire in February - OCRegister

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Village Management Services CEO Jeff Parker has announced his plan to retire from his position when his three-year contract expires Feb. 4.

In a letter Thursday, Nov. 18, Parker thanked VMS staff for their work, efforts and support.

“Together we have faced many challenges, and  I am proud of how well we met and conquered many of them,” Parker wrote in the letter. “I am confident you will continue to rise to each future challenge with skill, determination and professionalism, and I wish you all every success going forward.”

  • Village Management Services CEO Jeff Parker announced his plan to retire when his contract expires in February. (Courtesy of Village Management Services)

Parker said he will continue to support staff and the succession plans as his term draws to a close.

The VMS board is in deliberations on how to proceed and has not announced a plan at this time, according to Eileen Paulin, director of media and communications for VMS.

Meanwhile, at the Third Mutual board’s regular meeting Tuesday, Nov. 16, directors passed a resolution to provide a company cellphone to the board president after VMS negotiated a lower monthly service fee.

As initially proposed, the cellphone would be second-hand and free of charge, but the service was projected at $75 per month, or $900 per year, Parker said.

That proposal drew repeated objections from Third Mutual members last month.

VMS provides more than 100 cellphones for its staff. Each device is set at different rates – $35, $50 or $75 per month – based on data-driven needs, Parker said.

During negotiations with the cell service provider, VMS arranged a $35 monthly rate for all cellphones companywide, including the new line, with unlimited data.

Based on the new rate, the board president’s line would cost $420 per year, less than half of the initial financial projection.

“As discussed in the last meeting, we had a cost issue,” Parker said. “This will reduce our costs across the organization, which is pretty significant.”

Parker estimated a cost savings for VMS of $20,000 to $30,000 per year.

“You have now saved a lot of money for the residents,” Third Mutual member Susan Smallwood said. “I hope that you will start digging through and maybe find other issues that will bring forth money for our residents.”

The Third board president’s cellphone would not be for personal use, but rather to conduct business on behalf of the mutual, according to a staff report.

The board approved the resolution 9-0-1, with President Robert Mutchnick in abstention and Director John Frankel out of the room.

COVID-19 update

Over the past month, the COVID-19 case count in the city of Laguna Woods experienced a notable rise. Parker highlighted this by providing a side-by-side comparison.

The total number of COVID-19 cases to date in the city jumped from 537 cases to 562 in the past month.

The number of hospitalizations increased from 174 to 204, including patients in the ICU, showing a jump from 34 to 56 at the time of Parker’s report.

No additional deaths have been reported, with the total for the city of Laguna Woods at 56 fatalities.

Public officials reported the latest COVID-19 case rate for Orange County to be 6.9 cases per 100,000 residents, according to the OC Health Care Agency.

“We were seeing a decline,” Parker said. “Unfortunately, the COVID-19 scenario is still around.”

Contractor violation

Third passed a resolution that would implement a contractor violation policy, to better provide protections to the mutual.

According to a VMS staff report, Manor Alterations is seeing more frequent violations by member-hired contractors, both minimal and severe, which come at “extensive additional” costs to members and are committed by repeat offenders.

These costs may involve asbestos cleanups, damage caused to the mutual by removal of structural components and work started without permits, as stated in the staff report.

Currently, Manor Alterations does not have a policy in place to manage contractor violations.

As proposed, contractor violations may be ranked as either moderate or severe, with a 30-day suspension after initial notice of a moderate violation and a 90-day suspension after initial notice for more severe issues.

Contractors may be terminated upon a third notice of a severe violation.

As contractors are in direct contract with members and not the mutual, the mutual is limited in its deployment of contractor violations. This policy is a method of leverage for enforcement of Third’s rules and regulations.

With that being said, VMS Manor Alterations Manager Robbi Doncost said the two-stage process would be intentionally phased in as to work with contractors, not against them.

“We’re intending to work with the contractors to clear up issues and not just take an egotistical approach,” Doncost said. “This policy is to get contractors to be more in line with the policy, rules and regulations of your mutual.”

Doncost does not anticipate any suspensions in the first 60 days of the policy’s activation.

“It would simply cause too much harm,” he said, providing an example of a contractor who may face suspension on one project only to be taken off another, such as a bathroom renovation, before completion.

The resolution must satisfy a 28-day notification requirement for member review.

(Globe editor Anita Gosch contributed to this report.)

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