Is Coto CAN a de facto subsidiary of the CZ Master association

Is Coto CAN a de facto subsidiary of the CZ Master association?

January 11, 2007

In the past, CZ board critics have argued that too close of a relationship between the CZ Master association and Coto CAN unnecessarily expose CZ residents to additional liability.

The usual suspect response from the board has been that the CZ Master is not related to Coto CAN, other than to supply some sort of subsidy, disguised as a newsletter publication fee.

The January 2008 CZ newsletter (Coto Voice) makes the issue as clear as mud. The cover page announces a “Community Safety Fair”, mostly characterized as a fund raiser for Coto CAN, including a list of the scheduled vendors to be present at such fair. The CZ president in the same newsletter extols the fair's virtues.

For close to a decade now, we have argued that the CZ board of directors should take a proactive stance anent public safety. Public Safety awareness being one of the key elements in any effective public safety campaign – a Public Safety Fair can be an effective tool, as long as it is not viewed as a “farmer’s market” - that is such fair can be counter productive, given the continuous credibility gap.

As advertised in the newsletter, the CZ Master association and Coto CAN are but the same entity – we have a lawyer’s letter claiming as much.

Some of us predicted liability for CZ when Varo/Mezger fired the CHP which was ignored and sure enough there was a serious accident that resulted in a settlement. The Association had to pay $50,000 of the deductible; but that won’t be all as our insurance rates will now be impacted. I have warned CZ Board Members to close those Oakview/Oakknoll gates in accordance with the agreement that was a condition of development because of the breach to our security and the liability that is involved and once again the Board continues to ignore this problem. I have encouraged the Board to stay clear of anything that might connect Keystone’s “Executive Director” to CZ as an employee in fact to avoid any employee practice litigation which again Varo/Mezger as big dopes ignored. Many, many times former CZ Board Members have told the current Board to stay clear of CotoCAN which was set up separately and specifically to shield CZ with our deep pockets from liability. And, of course the CZ Board under Varo/Mezger always ignored this advice. I hope that Yocham/Hylka are smarter than Varo/Mezger. Please, Please, CZ Board Members do what is necessary to maintain an arms distant relationship from CotoCAN. They are an accident waiting to happen. Oh wait, there was an accident at a CotoCAN event when the float ran over a little girl’s dancing foot. Fortunately, there was no permanent damage; but had there been, you can bet CZ would have been sued. Let us hope that Yocham/Hylka fully understand the implications of involvement with CotoCAN. Lennar knew exactly what they were doing when they set up CotoCAN as a separate entity. CZ Board Members better get the message to avoid liability for our Members. Joseph Morabito, former member CZ board of directors.



P.S. Jim Harkins, please advise your clients on the CZ Board of how this all works.





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