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Coto de Caza, California is a census-designated place and guard-gated private community in the unincorporated Trabuco Canyon area of Orange County, California. As of the 2000 census, the CDP had a total population of 13,057

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COTO DE CAZA - CZ ASSOCIATION BOD COMPLAINT

January 09, 2006

TO:  KEYSTONE PACIFIC, CZ MASTER ASSOCIATION LEGAL COUNSEL

FROM:  JOSEPH MORABITO

SUBJECT:  MORABITO CZ FORMAL COMPLAINT LETTER

DATE:  January 09, 2006

Hello All:  Attached is the last resort formal complaint letter which will be filed shortly with various state authorities against the CZ Master Association Board of Directors and their agents.  I regret having to take this action because it will cost us all monies in legal fees; but given the actions of the current incompetent CZ Board and their agents, I saw no other alternative.   Regards, Joe Morabito

P.S.  If the issues identified are not properly addressed there will be more letters as necessary until we get state action. 

 


To Whom It May Concern:

I am writing on behalf of Coto De Caza Concerned Citizens and as a former Board Member of the CZ Master Association, a 3,500 member homeowners association located in Orange County, California.  This letter constitutes a formal complaint against the CZ Master Board of Directors, and their agents CJ Klug at Keystone Pacific Property Management, 29883 Santa Margarita Parkway, Rancho Santa Margarita, California 92688 and James Harkin, representative attorney at Caine, Walker and Harkins, 17821 East 17th Street, Suite 140, Tustin, California 92780.  The current CZ Master Board of Directors and their agents have consistently acted in violation of their fiduciary responsibility, our governing documents and laws of the state of California specific to homeowner and corporate governance codes and statutes as follows:

1.             Refusal to respond to specific and numerous questions about the finances of the Association in violation of the law.  Overall failure to disclose specific financial and other information concerning the workings of the Association.

2.             Irregular accounting procedures including slush fund accounting and failure to properly account for a major common area facility in order to purposefully hide such expense.

3.             Providing and/or otherwise subsidizing outside organizations with Association dues money in violation of our governing documents.  Actually giving legitimate Association revenues away to outside organizations.

4.             Commercializing our Association through the use of outside organizations to shelter revenues from taxation.

5.             Exposing our Members to increased liability by sponsoring/coordinating activities of other organizations.

6.             Attempting to stifle criticism in violation of First Amendment Rights by sending threatening legal letters to our Members.

7.             Disregarding developer binding legal agreements that were a condition of development of certain tracts and the overall master development.

8.             Implementing a Special Assessment which had to be rescinded since the purpose for the Special Assessment never existed.  (the purchase of a property deal)

9.             Providing an outside organization our names and addresses, for commercial purposes in violation of our privacy rights.

10.         Ordering our property management agent, Keystone Pacific staff members to support and otherwise work the events/business of outside organizations.

11.         Consistently discussing Open Session issues in Executive Session Board Meetings

12.         Failure to keep adequate Board Meeting Minutes.

13.         Purposefully manipulating the 2005 CZ Board Election in order to cheat the one candidate who ran against them out of a Board seat.

14.         Purposefully acting to make Recall from the Board virtually impossible as a result of a corrupt Delegate Electoral System in which all current Board Members sit as Delegates who can overrule any Recall vote.

15.         Instituting a discriminatory common area fee structure which benefits outside organizations at the expense and to the detriment of our Association members.

16.         Exposing our residents to danger on our streets by terminating a CHP contract put in place by former Boards in order to protect friends from potential DUI’s without any other option in place to implement proactive traffic patrols.  The end result was a significant increase in traffic accidents and a recent tragic death on our streets.  The Board was recently forced by outcry to reinstate the CHP.

17.         Failure to properly bid out major Association contracts some of which result in expenses of one million dollars or more per year.

18.         Consistently lying to our Association Members concerning various initiatives and the workings of the Association.

19.         Using Association resources to promote and/or otherwise organize political activities specific to formation of a Community Services District or potential Cityhood movement.

As a result of these serious issues and many more, I am requesting that appropriate state authorities take action to investigate the workings of the CZ Master Association, a quasi city like organization that controls an $8.5 million budget and our streets, security, gate access, common areas, architectural review and approval, etc. etc.  The CZ Master Association is not the typical homeowners association; but rather functions much more like a city impacting over 15,000 residents and therefore should fall under additional laws governing cities.  The current CZ Master Association Board and their agents continue to act in violation of their fiduciary responsibility, our governing documents and the state laws governing HOA’s like no other CZ Board before them.  As a result, state action is required.

Further, it is clear that additional Sarbanes-Oxley type and other laws are necessary to govern homeowner associations and their agents to provide more stringent financial and criminal penalties for Association Board Members and their agents who do not act in accordance with governing documents and various current state laws already on the books.  Since most new developments in California involve Home Owner Associations and many are quite large as is the case with the CZ Master Association implementing city-like functions, a fresh look is required to determine the proper role of government in over seeing these major Associations.  If this does not occur, the courts will be clogged with litigation from Member groups suing their own Associations which is not the best way to handle constructive community relations and management.   Please act on my complaint as soon as possible as these matters are very serious.

Sincerely,

 

Joseph Morabito

Coto de Caza Concerned Citizens

18 Claremont Lane

Coto de Caza, California  92679

949 858-5385

P.S.      I fully expect the current CZ Master Board to do everything possible to subvert the new law, SB 61 requiring direct election of board

 

Post comment  |  Read Comments

 

Governor Arnold Schwarzenegger

State Capitol Building

Sacramento, CA 95814

California Department of Justice

Bill Lockyer, Attorney General

Attn: Public Inquiry Unit

P.O. Box 944255

Sacramento, CA 94244-2550

 

Assemblyman Todd Spitzer

Assembly District 71

State Capitol

Room 2111

Sacramento, CA 95814

 

Department of Real Estate

Jeff Davi, Commissioner

2201 Broadway

Sacramento, CA 95818-2500

 

Senate Minority Leader

Dick Ackerman, Senator 33rd District

17821 E. 17th St., Suite 180

Tustin, California 92780

 

The State Bar of California

Office of the Chief Trial Counsel

1149 South Hill Street

Los Angeles, CA 90015-2299

 

Assemblyman Dario Frommer

Assembly Majority Leader

43rd Assembly District

620 N. Brand Boulevard, Suite 403

Glendale, CA 91203

 

Senate Majority Leader

Senator Gloria Romero

State Capitol

Room 313

Sacramento, CA 95814

 

Assemblyman Kevin McCarthy

Assembly Minority Floor Leader

Assembly District 32

4900 California Avenue,Suite 140A

Bakersfield, CA 93309

 

Office of the District Attorney

Tony Rackauckas, Orange County DA

401 Civic Center Drive

Santa Ana, CA 92701

 

Office of Supervisor Tom Wilson

Orange County Board of Supervisors

10 Civic Center Plaza

Santa Ana, CA 92701

 

 

 


LIST OF DELEGATES AND THEIR POSITION WITH REGARDS TO SECURITY AS WE KNOW IT - IF ERRORS, PLEASE LET US KNOW.

DISTRICT NUMBER

DISTRICT NAME

PRO-COTO SECURITY

PRO- PERSONAL AGENDA (CITY)

1

Ranchos Colinas (sub-association)

Chris Anderson

 

2

The Forest/Tiara/The Arbours/Lyon

 

George Thagard

3

The Terrace (sub-association)

 

Susan Bower

4

Grand Coto II

 

John Smead

5

Coto Country Homes

 

Darrell Starnes

Alternate: Don Joynt

6

Fairway Oaks (sub-association)

 

Karen Martin, Alternate: Ethel Hanna

7

East Hills/East Point

 

John Noel

8

Los Verdes (sub-association)

 

Marc Coody

9

Oakmont

 

Mark Gennaro

10

Stonehedge

 

Tom Barker

11

The Trails/Master Collection

Terry Corwin, Alternate: Richard Fragapane

 

12

Summerfield

 

Corey Ferguson Alternate: Ronald Beach

13

Hillsboro

Joseph Aguirre

 

14

The Greens

 

Cheryl Harris

15

The Woods/Arroyo Sur

 

Ron Eger

16

Fairway Estates

 

Michelle Capotosto

17

Meritage

 

Alex Goldberg

19

The Classics

 

Sean Larkin

20

Chantemar

 

 

Lyle Schlieder Lyle Schlieder

Dave Elm, Alternate:

 

21

Canyon Estates

 

Robert Curran

22

The Legacy/Enclave/Stonefield Estates

 

Joan Rebensdorf

23

The Pinnacle

 

Jeane O'Connor

24

Greystone Villas (sub-association)

 

Don Wegner

Alternate: Tom Ritchie

25

Andalusia (sub-association)

 

Joe Sloan

26

Oak Ridge

Patrick Taylor

 

27

Tanglewood

28

Glen Eagles

 

Michael Guerin

29

Montecito

  Aida Hobbs  updated 1/06/2006

30

Tapestry

 

Bob Grich

31

Grand Coto Estates/Part of Atherton/Part of Weatherly

Lea Ann Miller

 

32

Part of Southern Hills/Fairway Reflections

 

Jerry Scanlan

33

Glenmere

 

Paul Thomas

34

Crooked Oak

 

Elaine Hamill

35

Courante

 

Terry Kwit

36

Part of Atherton/Part of Weatherly

 

Roger Jolicoeur

37

Southern Hills Encore

 

Pam Cain  Alternate: Edward "Ned" Snavely

38

Terrazza

George Barnes

 

39

Silver Creek

 

Mary Spicer

40

Rosewood

Tracey  Fortier  Alternate: Marina Borzatta

 

41

Spring Hill/Chatham

 

Michael Wagner, Alternate: Craig Tiffany

42

Stonefield Private Collection/San Marino

 

Jerry Mezger

43

Oak Knoll (sub-association)

 

Dan Domier

44

Oak View (sub-association)

 

Mitch Hill

45

Terra Vida

 

Michael Lane

46

Valle Vista

 

Bob Varo  Alternate: David Dresnick

NOTE:  Please respond to cotobuzz@yahoo.com, as cotobuzz@yahoogroups.com is strictly for Coto residents.


 

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