Re: Voluntary attempt to resolve case #IS

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1 JIM GIBBONS Governor MENDY K. ELLIOTT Director STATE OF NEVADA DEPARTMENT OF BUSINESS AND INDUSTRY REAL ESTATE DIVISION OFFICE OF THE OMBUDSMAN FOR OWNERS IN COMMON-INTEREST COMMUNITIES 2501 E. Sahara Avenue, Suite 202 Las Vegas, Nevada (702) Fax (702) Toll Free GAIL J. ANDERSON Administrator LINDSAY WAITE Ombudsman September 25, 2007 Michael Dixon 1637 Wellington Springs Henderson. Nevada Robert E. Frank C/O City Anthem Community Association, Inc Hampton Road Henderson, Nevada Re: Voluntary attempt to resolve case #IS Dear Mr. Dixon and Mr. Frank On September 7, 2007 this office received the Ombudsman Intervention Affidavit from Mr. Dixon. The Office of the Ombudsman is not taking a position on the allegations of the complainant, but is summarizing the allegations made by Mr. Dixon as follows: The homeowner claims that Board Director at Sun City Anthem Community Association, Inc, Robert Frank has violated various provisions of NRS 116 and NAC 116 by the following: 1) allegedly breaching the contract with the Management Company by giving work direction to RMI employees (NAC (1)); 2) allegedly breaching the contract with the Management Company by criticizing the performance of the Management Company's employees (NAC )(1)); 3) allegedly discussing subjects brought up in Executive Session to other homeowners (NRS (1), NAC (5)); 4) allegedly informing homeowners that the Association may be significantly underinsured (NRS (1), NAC (1)); 5) allegedly informing homeowners that they could attend a "board only" meeting with the Association's insurance car r iers (NRS (1), NAC (1)): 6) allegedly demanding that the Manager provide within 2 days numerous documents and other detailed information regarding the Association's insurance coverage (NRS (1)); 7) allegedly refusing to comply with Board requested related to performing his Board duties (NRS ). NAC (5)); 8) allegedly publicly discussing his disagreement with a written legal opinion from Board counsel to the Board and demanding that the Board seek other opinions and change NSPO Rev. 6-07) L 162CIC-LV

2 attorneys (NRS (1); 9) allegedly distributing copies of the legal opinion to a resident after being instructed by the Manager and Board President that the opinion was privileged "attorney-client" material (NAC (2), NAC (5), NRS (1)); 10) allegedly publicly commenting on the performance and ethics of other Board members (NAC (2)); 11) allegedly publicly stating that the Board should charter a sub-committee and accept liability for their work against the written recommendations from the insurance carrier (NRS (1), NAC (2)); 12) allegedly sending copies of s to people other than Board members on confidential Board matters (NRS (1)); 13) allegedly threatening other Board members with public retribution and retaliation for making decisions with which he disagrees (NAC (2); 14) allegedly not acting in accordance with Board-approved policies and resolutions (NRS (1); 15) allegedly acting unilaterally on Association matters without prior Board knowledge, discussion, or decision (NAC (1); 16) Allegedly responding to other homeowners' requests without Board member knowledge or concurrence and at times promoting a course of action contrary to Association policies, Board decisions. governing documents and/or legal opinions (NRS (1), NAC (1); 17) Allegedly telling Committee Chairs what actions to take and overriding Committee commendations with personal ones (NAC (2)); 18) Allegedly recording a meeting of the Board in executive session (NRS (11)). Please Note: the allegation(s) may not be older than one year after the person discovers or reasonably should have discovered the alleged violation(s). As a preliminary step. this Office would like to offer the opportunity for both parties to volunteer to attempt to resolve this claim. Therefore, I would like to request that both of you attend a meeting at this office to discuss your concerns and determine whether you can resolve the matter. These meetings are not required; in other words, attendance by the parties is voluntary. Further, unless BOTH sides agree to attend. we will not be able to hold the meeting. To the Board President, if you believe another officer or a Community Association Manager is the more appropriate person to attend the meeting on behalf of the Board, please forward this request to that individual. This meeting would be completely confidential and is limited to your participation as principal parties. I would appreciate it if you would contact Administrative Assistant Victoria Broadbent at (702) and let her know 1) if you are willing to meet with me and the opposing party to discuss this matter and, if so, 2) whether you are available to meet on Thursday, October 18, 2007 at 2:30 p.m. This date is NOT FINAL unless you receive a phone call telling you that the meeting date is confirmed. We must have an agreement from both parties before the meeting is definite. Therefore, It is important BOTH parties CONFIRM prior to the scheduled meeting date. Ninety minutes will be allocated for this meeting. It is not a formal hearing. Therefore, there will be no witnesses and no testimony will be taken. Instead, this is an informal conference to attempt to resolve the matter.

3 Please contact Ms. Broadbent within 15 days of the date of this letter so that we know if you are willing and able to attend this meeting. I look forward to meeting with both of you on this matter. Sincerely, Lindsay Waite Ombudsman cc: Terry DaSilva File

4 JIM GIBBONS Governor MENDY K. ELLIOTT Director STATE OF NEVADA ANN M. McDERMOTT Administrator LINDSAY WAITE Ombudsman October 9, 2007 DEPARTMENT OF BUSINESS AND INDUSTRY REAL ESTATE DIVISION OFFICE OF THE OMBUDSMAN 2501 E. Sahara Avenue, Suite 202 Las Vegas, Nevada (702) Fax (702) Statewide Toll Free Michael Dixon 1637 Wellington Springs Henderson, Nevada Robert E. Frank C/O City Anthem Community Association, Inc Hampton Road Henderson, Nevada Re: CASE # IS Dear Mr. Dixon and Mr. Frank On September 25, 2007 the Office of the Ombudsman sent both of you a letter requesting an informal Conference Meeting in my office to discuss the Ombudsman Intervention Affidavit filed with the Real Estate Division. The Conference Meeting will not take place; only one party was willing to attend whereas BOTH parties must agree to the meeting before it can take place. This letter is to let you know case # IS will be forwarded on to the Compliance Section of the Ombudsman's Office, where it will be reviewed by the Chief Investigator. If the Chief Investigator determines a violation has occurred he will assign it to an investigator. The investigator, if assigned to the case, will advise the claimant by mail that the case has been opened. Sinc ely, Lindsay Waite Ombudsman CC: Terry DaSilva File

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