Why this site exists
Everyone who comes to Pine Mountain Club falls in love with it. The air is clean enough to taste. A breeze moves through the pines, quail call from the brush, owls call at night, and a deep quiet settles over everything. Most of us live here part time and carry that feeling home with us.
Those of us who live here full time see another side, too. Sooner or later, we run into the way our association does business: decisions made without fairness, without explanation, and without respect for the members who pay for everything. Some of the people we elect seem to think that winning a seat lets them do whatever they want, whenever they want. Common courtesy disappears, and abuses follow.
This site puts the facts in front of every member, with the documents to back them up, so each of us can see for ourselves.
Where are our reserve savings?
Money from our savings has been moved to the spending side. It hasn't come back, and the Treasurer's reports still count it as savings.
Two piggy banks
Savings (reserves)
For big repairs: roads, roofs, the pool, the clubhouse. Taking money out needs two signatures from board members or officers (Civil Code 5510). Borrowing it for everyday bills requires notice to members in the board meeting notice, the reason recorded in the minutes, and repayment within one year (Civil Code 5515).
Spending (operating)
Pays wages, utilities, insurance and everyday bills. It is supposed to stay separate from savings.
Why we have a reserve checking account
Our savings are kept in two linked accounts. Each one has a different job.
Reserve ICS, account ending in 3499
Where the savings sit. ICS means Insured Cash Sweep. The bank spreads the money across many FDIC-insured banks, just under $250,000 at each, so all of it stays federally insured. It earns interest. But no checks can be written from it and no vendor can be paid from it. Money can only move in and out through the reserve checking account.
Reserve Checking, account ending in 5349
The door to the savings. Its job is to pay reserve projects, like a roof, road paving or the pool, straight to the contractor from reserve money. Every withdrawal needs two signatures (Civil Code 5510). This keeps reserve spending separate from everyday bills.
Reserve money pays a reserve project.
Passed through the same day, labeled "Treasury bills."
On April 6 ($500,000) and June 3 ($1,500,000), reserve checking was used only as a pass-through. The money landed in the operating account, where it mixed with everyday cash. That is how savings ended up covering the June 2 overdraft, and how the Treasury bills ended up paying back to the spending side. The steps are shown below.
A question for the board: VSS International, a road paving company, was paid about $326,000 from the operating account in 2025–26. If that was reserve work, why was it not paid from reserve checking, with two signatures and a board vote? If it was not reserve work, why was reserve money moved into operating that year?
The tennis game
Picture the money as a tennis ball. Watch which side of the court it lands on. A "Treasury bill" is a government IOU that pays a little interest.
See it for yourself. Under each step, tap or click the green button that says “Tap or click to see the bank statement” to open the actual lines from the Association's California Bank of Commerce statements. Tap it again to close. The only things I added are the yellow highlight and black boxes over account numbers. Tap any image to enlarge it.
Sends $500,000 labeled "Treasury bills"
Buys an IOU for $498,592. It pays back to Spending.
Tap or click to see the bank statements (4)
Buys an IOU for $495,456 with its own money. Back-up account hits $0.
Tap or click to see the bank statements (2)
Buys two IOUs for $995,777. Checking goes to −$650,999.83.
Tap or click to see the bank statements (2)
Sends $1,500,000 to cover it
Tap or click to see the bank statements (3)
Back-up account is back up to $1,153,261
Tap or click to see the bank statement (1)
April IOU matures. $500,000 returns to Spending.
Every time the ball comes back, it lands on the spending side. When the spending account is empty and savings pays the bill, that works as borrowing from savings, whatever it is called. I found no minutes and no notice to members about it.
The July maturity comes from the Treasurer's July 31, 2026 report, which says $500,000 of reserve T-bill money "matured into operating." The Association has not produced July bank statements or TreasuryDirect statements.
What we were told vs. what the bank showed
Each row puts the Treasurer's own words next to the bank's own numbers for the same date.
"Reserve Fund Cash and Cash Equivalents Balance."
Reserve ICS 3499 ($4,492,999) plus Reserve Checking 5349 ($250,000) on May 31.
Tap or click to see the documents (2)
The operating fund was up this much for the year, when the budget expected a $37,361 loss.
Left in the operating back-up account (Operating ICS 0556) after it was emptied on May 28, the day operating paid for a $495,456 Treasury bill.
Tap or click to see the documents (3)
No document to show. No minutes, finding or notice about borrowing from reserves (Civil Code 5515).
Operating checking on June 2. The next day $1,500,000 came over from savings and the balance went back to $500,000.
Tap or click to see the documents (2)
The Treasury bills are counted as reserve savings.
All four Treasury bills ($1,989,825) were paid from Operating Checking 2055. The Treasurer's own July 31, 2026 report says one matured into operating.
Tap or click to see the documents (4)
Reserves, including $1,115,123 of reserve money the report says was sitting in operating.
In the savings accounts on June 30, the latest statements produced (Reserve ICS 3499 plus Reserve Checking 5349).
Tap or click to see the documents (2)
The operating back-up account emptied
Month-end balance of Operating ICS 0556. Over the same months the Treasurer reported the operating fund up $342,544 for the year. It was refilled only after $1.5 million came over from savings in June.
Where the reported $5.89 million actually is
On May 31, 2026 the report said savings held $5,738,505; the savings bank accounts held $4,742,999. Half of the difference was an IOU paid for with spending money three days earlier. By July 31:
| Piece | Amount | Where it is | Shown in records? |
|---|---|---|---|
| Savings bank accounts | ~$3.27M | Reserve ICS 3499 + Reserve Checking 5349 | Bank statements |
| Treasury bill IOUs | ~$1.49M | TreasuryDirect, paying to Spending | Not produced |
| "Savings money in operating" | $1.115M | Spending's cash | Mixed in |
The pieces add up to within about $10,000 of the reported figure (July statements were not produced, so this assumes no other July movements). The money is not missing on paper. But about $2.6 million of "savings" is outside the savings accounts.
How many bank accounts we have
There is also a TreasuryDirect account (ending in 75931) that holds the Treasury bills. It is not a bank account, and it is linked to the operating side. No statement for it has been produced.
Balances on June 30, 2026
The balance in each account on the last statements members were given (June 30, 2026). Green = reserve (savings) accounts Amber = operating (checking / spending) accounts
| Account | Type | Balance |
|---|---|---|
| Reserve ICS Account ending in 3499 | Reserve | $3,223,687.22 |
| Reserve Checking Account ending in 5349 | Reserve | $50,000.00 |
| Operating ICS Account ending in 0556 | Operating | $1,153,260.74 |
| Operating Checking Account ending in 2055 | Operating | $250,000.00 |
| CB&T Operating (second bank) Account ending in 3823 | Operating | June statement not given to members |
| Payroll Account ending in 4925 | Operating | Only July 2025 given to members |
| Total in the four accounts with June statements | $4,676,947.96 | |
| Reserve accounts subtotal | $3,273,687.22 | |
| Operating accounts subtotal | $1,403,260.74 | |
| Treasury bills bought April–June (TreasuryDirect, paying to Spending) | Not produced | $1,989,825.22 |
| Total with Treasury bills | $6,666,773.18 |
Of the $4.68 million in the bank, $3.27 million is in the savings accounts and $1.40 million is on the spending side. The Treasury bill amount is what was paid for them; no TreasuryDirect statement has been produced to show what is still held. The total leaves out the CB&T 3823 account (its balance ran between about $92,000 and $273,000 during the year) and the Payroll 4925 account, because their June statements were not given to members.
What we still have not been given
Everything on this page comes from the partial records members were given. Still not produced:
- The general ledger for 2024–25 and 2025–26. None has been produced for these years.
- Bank statements for 2024–25.
- Financial records for 2024–25.
- The IRS examination findings.
Not all of the statements are the bank's own files. The file information (metadata) on the 58 monthly statements I was given shows that only 12 were made by the bank's statement systems. Another 32 are paper copies scanned on an office copier, and 14 were re-saved with "Print to PDF" or a web browser. That does not prove anything was changed, but a copy cannot be checked the way an original bank file can. I hope these are true copies of what the bank sent. The full file information is listed below, under "What the file information shows."
The law lets members inspect the Association's records at the office (Civil Code 5205). I have been stopped from going to the office to look at the books. As far as I know, no board since Bill Lewis's has allowed an independent team of experts into the clubhouse to look at the numbers.
If the partial records already show this much, I believe the full picture may be worse. Members deserve to see all of it. No board member should be above the law, and if the law keeps being ignored, I fear we are heading toward a recall.
Six records that would settle it
There may be an explanation. If there is, these will show it.
- Treasury bill account statements: whose name is on it, which bank account it pays into, every purchase and maturity.
- The board vote and both signatures for the April 6 and June 3 withdrawals from savings.
- An explanation of the June 2 overdraft and why savings covered it.
- Proof each matured dollar went back to savings, with dates and bank statements.
- The board action that created the reconciliation committee, and every bank reconciliation it has given the full board (Civil Code 5500).
- An independent forensic review of the reserve and operating accounts.
Why I am doing this
I am a volunteer. I work Monday through Friday, 8 to 5, and I commute, so I do not have many free hours left in the day. I spend them going through these statements because I think no one else in this community is doing the work that needs to be done: checking what we are being told against the facts. Members have a right to know where their money is.
Asking these questions has come at a cost. I was expelled from a board meeting and escorted out by Patrol after asking one question: why do the California Franchise Tax Board's records show our Association exempt as a 23701(f) organization, the state version of a 501(c)(4)? (Homeowners associations are usually exempt under 23701(t).) "What We Were Not Told" explains what that status means for us → In my view, this is the new approach Nichole Gates has imposed on anyone who asks questions.
Tap or click to see the documents (2)
On social media, I have been blamed for costing the Association money, because the Association's lawyer, paid with members' money, was sent to deal with me. I did not give the lawyer that work. As I understand it, Nichole Gates is the one with the power to direct the Association's lawyer to deal with members, so the cost is her decision, not mine. I believe it was a way to stop me from finding the truth. The Association has also sent me a cease and desist letter.
This is not new. I have been maligned by previous boards and by many managers in local government, because I deliver facts they do not want members to know. Those facts include money taken from the reserves.
I believe Nichole Gates is using members' money to keep the truth from coming to light: to cover for her failings, to play the victim, and to act against members who have asked for financial information. In my opinion, playing the victim covers up the real issue, which is that the law is being broken. The real victims are the members, who are left unprotected by a runaway board that ignores the laws that are there to protect our money. Instead of serving the members, she is using members' money to serve a runaway board and cover up the real truth. Nichole Gates has written publicly that members should appreciate "the man hours required to fulfill an endless stream of document ‘requests.’" Another member who has also asked questions about our finances has been fined $2,000 by the board. The board's stated reason was bullying; I believe the real reason is her questions.
Tap or click to see the document (1)
As I understand it, the same accounting manager is still in charge of our money, and new resolutions, led by Randall Gates, have given the general manager more freedom to spend it. Members can ask to see those resolutions.
I accept the cost. I am satisfied that my volunteer hours will bring some light, so the community can see what is really going on.
In my experience, on these questions a majority of the board has voted together: Randall Gates, Nichole Gates, Madison Bottorff, Andrea Schoening and Mark Blethen. Members can check each vote in the minutes.
Under California Civil Code 5500, part of the Davis-Stirling Act, the board must review every month a current reconciliation of the operating and reserve bank accounts, the latest bank statements, the income and expense statement, the check register, the monthly general ledger and the delinquent assessment report. Our own Bylaws (section 10.07) also call for this review every month. As I understand it, that work has been left to a committee formed by a father and daughter, Randall Gates and Nichole Gates. If so, the other board members have not seen the whole picture of what is going on.
As board chair, Nichole Gates also signs the Association's checks. That means the same person who signs the checks is also reconciling the accounts those checks are paid from, on a committee made up of two family members. Basic internal controls keep these jobs separate, so that no one checks their own work. In my view, real internal controls do not exist here. How low have we gone with this runaway board?
Director Debbie Bailey has shown with her actions that she is keeping her word: to bring the truth to members and to fight for transparency.
As for the rest of the directors, after finding out about the new corporation, I do not trust what anyone says, only what they do. That is what members should follow too: actions, not words.
Director Randall Gates has been promising members many things. His messages begin by talking about how things used to be, and then his actions do exactly what the previous boards did. In my view, he has been a wolf in sheep's clothing.
I am not asking anyone to take my word for it. The money figures on this page come from the Association's own bank statements and Treasurer's reports. The other documents come from the Franchise Tax Board and a public Facebook comment. Every image is there for you to check.
What the file information shows
Every PDF file carries hidden "file information" (metadata): the program or machine that made it, and the date it was made. I checked it for all 58 monthly statements the Association gave me. It falls into three groups:
- Bank statement system 12 files. Made directly by the bank's statement software ("VCTransaction," "ImageCentre Statements," "Quadient Inspire"). These are the bank's own electronic files.
- Office copier scan 32 files. Made on a Canon iR-ADV C5850 copier. Someone printed the statement on paper and scanned it back in. Most of these were scanned in August 2026, months after the statement dates.
- Re-saved 14 files. Made with "Microsoft Print To PDF" or a web browser (PDFium). Someone opened the statement on a screen and saved a new copy.
What this means and what it does not. A scan or a re-saved copy is not proof that anything was changed. Offices scan paper all the time. But a copy cannot be checked the way an original bank file can, so members are asked to trust that each copy matches what the bank sent. The Reserve Checking 5349 statements, which show the Treasury bill money passing through savings, are mostly the bank's own files. Most of the Operating Checking 2055 and Reserve ICS 3499 statements are copies. The simple fix is for the Association to give members the original electronic statements straight from the bank.
I also compared the copies given to me at different times. Every re-sent file was identical, byte for byte, to the earlier copy.
Tap or click to see the file information for all 58 statements
| Month | Account | Where the file came from | Software recorded in the file | File created |
|---|---|---|---|---|
| 2025-07 | CB&T Operating 3823 | Office copier scan | Canon iR-ADV C5850 PDF / Adobe PSL 1.3e for Canon | 2026-08-06 |
| 2025-07 | Operating Checking 2055 | Office copier scan | Canon iR-ADV C5850 PDF / Adobe PSL 1.3e for Canon | 2026-08-06 |
| 2025-07 | Operating ICS 0556 | Re-saved (Print to PDF / browser) | Microsoft: Print To PDF | 2025-08-01 |
| 2025-07 | Payroll 4925 | Office copier scan | Canon iR-ADV C5850 PDF / Adobe PSL 1.3e for Canon | 2025-09-10 |
| 2025-07 | Reserve Checking 5349 | Re-saved (Print to PDF / browser) | Microsoft: Print To PDF | 2025-10-08 |
| 2025-07 | Reserve ICS 3499 | Re-saved (Print to PDF / browser) | Microsoft: Print To PDF | 2025-08-01 |
| 2025-08 | CB&T Operating 3823 | Office copier scan | Canon iR-ADV C5850 PDF / Adobe PSL 1.3e for Canon | 2026-08-06 |
| 2025-08 | Operating Checking 2055 | Office copier scan | Canon iR-ADV C5850 PDF / Adobe PSL 1.3e for Canon | 2026-08-06 |
| 2025-08 | Operating ICS 0556 | Office copier scan | Canon iR-ADV C5850 PDF / Adobe PSL 1.3e for Canon | 2025-10-08 |
| 2025-08 | Reserve Checking 5349 | Re-saved (Print to PDF / browser) | PDFium / PDFium | 2025-10-08 |
| 2025-08 | Reserve ICS 3499 | Office copier scan | Canon iR-ADV C5850 PDF / Adobe PSL 1.3e for Canon | 2025-10-08 |
| 2025-09 | CB&T Operating 3823 | Office copier scan | Canon iR-ADV C5850 PDF / Adobe PSL 1.3e for Canon | 2026-08-06 |
| 2025-09 | Operating ICS 0556 + Reserve ICS 3499 | Re-saved (Print to PDF / browser) | Microsoft: Print To PDF | 2025-10-08 |
| 2025-09 | Operating Checking 2055 | Office copier scan | Canon iR-ADV C5850 PDF / Adobe PSL 1.3e for Canon | 2026-08-06 |
| 2025-09 | Reserve Checking 5349 | Re-saved (Print to PDF / browser) | Microsoft: Print To PDF | 2025-10-08 |
| 2025-10 | CB&T Operating 3823 | Office copier scan | Canon iR-ADV C5850 PDF / Adobe PSL 1.3e for Canon | 2026-08-06 |
| 2025-10 | Operating ICS 0556 + Reserve ICS 3499 | Bank statement system | Quadient Group AG~Inspire Designer~12.0.57.0 / CreationDate: Sat Nov 1 12:12:06 2025 PDT | 2025-11-01 |
| 2025-10 | Operating Checking 2055 | Office copier scan | Canon iR-ADV C5850 PDF / Adobe PSL 1.3e for Canon | 2026-08-06 |
| 2025-10 | Reserve Checking 5349 | Bank statement system | VCTransaction / PDFlib+PDI 8.0.2p1 (Win64) | 2026-08-04 |
| 2025-11 | CB&T Operating 3823 | Office copier scan | Canon iR-ADV C5850 PDF / Adobe PSL 1.3e for Canon | 2026-08-06 |
| 2025-11 | Operating Checking 2055 | Office copier scan | Canon iR-ADV C5850 PDF / Adobe PSL 1.3e for Canon | 2026-08-06 |
| 2025-11 | Operating ICS 0556 | Bank statement system | ImageCentre Statements / PDFlib+PDI 8.0.2p1 (Win64) | 2025-12-09 |
| 2025-11 | Reserve Checking 5349 | Bank statement system | VCTransaction / PDFlib+PDI 8.0.2p1 (Win64) | 2025-12-09 |
| 2025-11 | Reserve ICS 3499 | Bank statement system | ImageCentre Statements / PDFlib+PDI 8.0.2p1 (Win64) | 2025-12-09 |
| 2025-12 | CB&T Operating 3823 | Office copier scan | Canon iR-ADV C5850 PDF / Adobe PSL 1.3e for Canon | 2026-08-06 |
| 2025-12 | Operating Checking 2055 (file named “3823” by mistake) | Office copier scan | Canon iR-ADV C5850 PDF / Adobe PSL 1.3e for Canon | 2026-08-06 |
| 2025-12 | Operating ICS 0556 | Re-saved (Print to PDF / browser) | Microsoft: Print To PDF | 2026-01-06 |
| 2025-12 | Reserve Checking 5349 | Bank statement system | VCTransaction / PDFlib+PDI 8.0.2p1 (Win64) | 2026-01-05 |
| 2025-12 | Reserve ICS 3499 | Re-saved (Print to PDF / browser) | Microsoft: Print To PDF | 2026-01-06 |
| 2026-01 | CB&T Operating 3823 | Office copier scan | Canon iR-ADV C5850 PDF / Adobe PSL 1.3e for Canon | 2026-08-06 |
| 2026-01 | Operating Checking 2055 | Office copier scan | Canon iR-ADV C5850 PDF / Adobe PSL 1.3e for Canon | 2026-08-06 |
| 2026-01 | Operating ICS 0556 | Office copier scan | Canon iR-ADV C5850 PDF / Acrobat Distiller 26.0 (Windows) | 2026-08-04 |
| 2026-01 | Reserve Checking 5349 | Bank statement system | VCTransaction / PDFlib+PDI 8.0.2p1 (Win64) | 2026-05-08 |
| 2026-01 | Reserve ICS 3499 | Office copier scan | Canon iR-ADV C5850 PDF / Acrobat Distiller 26.0 (Windows) | 2026-08-04 |
| 2026-02 | CB&T Operating 3823 | Office copier scan | Canon iR-ADV C5850 PDF / Adobe PSL 1.3e for Canon | 2026-08-06 |
| 2026-02 | Operating Checking 2055 | Office copier scan | Canon iR-ADV C5850 PDF / Adobe PSL 1.3e for Canon | 2026-08-06 |
| 2026-02 | Operating ICS 0556 | Office copier scan | Canon iR-ADV C5850 PDF / Adobe PSL 1.3e for Canon | 2026-08-04 |
| 2026-02 | Reserve Checking 5349 | Bank statement system | VCTransaction / PDFlib+PDI 8.0.2p1 (Win64) | 2026-05-08 |
| 2026-02 | Reserve ICS 3499 | Office copier scan | Canon iR-ADV C5850 PDF / Adobe PSL 1.3e for Canon | 2026-08-04 |
| 2026-03 | CB&T Operating 3823 | Office copier scan | Canon iR-ADV C5850 PDF / Adobe PSL 1.3e for Canon | 2026-08-07 |
| 2026-03 | Operating Checking 2055 | Office copier scan | Canon iR-ADV C5850 PDF / Adobe PSL 1.3e for Canon | 2026-08-07 |
| 2026-03 | Operating ICS 0556 | Re-saved (Print to PDF / browser) | Microsoft: Print To PDF | 2026-04-10 |
| 2026-03 | Reserve Checking 5349 | Bank statement system | VCTransaction / PDFlib+PDI 8.0.2p1 (Win64) | 2026-04-01 |
| 2026-03 | Reserve ICS 3499 | Re-saved (Print to PDF / browser) | Microsoft: Print To PDF | 2026-04-10 |
| 2026-04 | CB&T Operating 3823 | Office copier scan | Canon iR-ADV C5850 PDF / Adobe PSL 1.3e for Canon | 2026-08-06 |
| 2026-04 | Operating Checking 2055 | Office copier scan | Canon iR-ADV C5850 PDF / Adobe PSL 1.3e for Canon | 2026-08-06 |
| 2026-04 | Operating ICS 0556 | Re-saved (Print to PDF / browser) | Microsoft: Print To PDF | 2026-05-08 |
| 2026-04 | Reserve Checking 5349 | Bank statement system | VCTransaction / PDFlib+PDI 8.0.2p1 (Win64) | 2026-05-08 |
| 2026-04 | Reserve ICS 3499 | Re-saved (Print to PDF / browser) | Microsoft: Print To PDF | 2026-05-08 |
| 2026-05 | CB&T Operating 3823 | Office copier scan | Canon iR-ADV C5850 PDF / Adobe PSL 1.3e for Canon | 2026-08-06 |
| 2026-05 | Operating Checking 2055 | Office copier scan | Canon iR-ADV C5850 PDF / Adobe PSL 1.3e for Canon | 2026-08-06 |
| 2026-05 | Operating ICS 0556 | Office copier scan | Canon iR-ADV C5850 PDF / Adobe PSL 1.3e for Canon | 2026-06-11 |
| 2026-05 | Reserve Checking 5349 | Bank statement system | VCTransaction / PDFlib+PDI 8.0.2p1 (Win64) | 2026-06-11 |
| 2026-05 | Reserve ICS 3499 | Office copier scan | Canon iR-ADV C5850 PDF / Adobe PSL 1.3e for Canon | 2026-06-11 |
| 2026-06 | Operating Checking 2055 | Office copier scan | Canon iR-ADV C5850 PDF / Adobe PSL 1.3e for Canon | 2026-08-07 |
| 2026-06 | Operating ICS 0556 | Re-saved (Print to PDF / browser) | PDFium / PDFium | 2026-07-29 |
| 2026-06 | Reserve Checking 5349 | Bank statement system | VCTransaction / PDFlib+PDI 8.0.2p1 (Win64) | 2026-07-08 |
| 2026-06 | Reserve ICS 3499 | Re-saved (Print to PDF / browser) | PDFium / PDFium | 2026-07-29 |
Where these numbers come from
- California Bank of Commerce statements: Operating Checking 2055, Operating ICS 0556, Reserve Checking 5349, Reserve ICS 3499 (Jul 2025 – Jun 2026). The excerpts shown above come from the April, May and June 2026 statements.
- TreasuryDirect debits on Operating Checking 2055: Apr 7, May 28 and Jun 2, 2026.
- Treasurer's reports as of May 31, 2026 (dated June 20, 2026) and July 31, 2026.
- File information (metadata) of each statement PDF as provided to members.
- Association Bylaws (June 2026) on reserve use and borrowing, and section 10.07 on monthly review of the accounts; California Civil Code 5500, 5510 and 5515.
- Franchise Tax Board Entity Status Letter, September 19, 2026, and California Revenue and Taxation Code 23701f.
- Nichole Gates, public Facebook comment, September 2026.
- About the images: each one is cropped from the statement page named in its caption. I added only the yellow highlight and black boxes over the first digits of account numbers; dashed lines mark where unrelated rows were cut out. Members can ask the Association for the same statements and compare.