Thursday, May 10, 2007

One More Near Miss Avoided - Clueless in My CID/HOA

One More Near Miss Avoided - Clueless in My CID/HOA

May 10, 2007

The number one rule in the Australian Aviation Magazine’s list of Flight Rules is the one about airplane take off and landing: Every takeoff is optional, Every landing is mandatory!

It is safe to say that most travelers know that takeoffs and landings are the most dangerous part of flying, and we regularly hear news reports of “near misses. A study by Forbes.com finds that hundreds of commercial jets have come within eight seconds of colliding on runways. The study details the top most dangerous airports in the U.S., based on incident reports to the FAA. For example:

1. North Las Vegas, a small airport not, Vegas airport. It has had 63 runway incidents and six deaths since 2001.

2. Long Beach/Dougherty Field, with 78 incidents.

3. Charlotte/Douglas International, N.C., , shot into third place due to a single serious incident.

4 Los Angeles International, with 95 serious incidents since 2001,

5. Boston's Logan International. The study notes that runway mishaps are up 37 percent since 1995, due in large measure to more flights but inadequate equipment to deal with them. Find the full report here.

It is also fair to say that most of us simply dismisses these reports as “nice trivia”, “who cares, as long as it does not affect me”, or simply dismiss it all together.

Just as dangerous and important is Common Interest Development (CID/HOA) legislation, which some HOA board of directors, such as the CZ BOD simply dismiss as “ micro-managing” due to a small number of poorly managed associations.

There is no better example of such a near-miss as the recent defeat of SB 670, which the California Association of Realtors® announces in a Red Alert as “Home buyers at risk: SB 670 Defeated in Committee” and describes the defeat as “SB 670 (Correa), C.A.R.’s sponsored “Private Transfer Tax Prohibition” bill was defeated today by the Senate Transportation and Housing Committee today”. Then it adds “The legislation would have protected consumers by placing responsible restrictions on private transfer taxes levied by developers and limiting the proceeds to environmental and affordable housing efforts related to the new development on which the private transfer taxes are imposed”.

However; leaders of the anti-SB 670 think differently: “The public will never know how close they came to having permanent liens put on their properties and their hard earned money being diverted to "political charities", they probably don't even know such a thing exists, or that their trade groups would sell them down the river”

What most of us do not know is that anti-SB670 leaders describe Steven Pawera, A CAR member as a person who “ deserves a medal of honor. He looks to serve his clients honorably and to protect their interests. He ventured out and stood up and questioned the real estate industry that is vested with the power and the money through their association dues, to protect real estate professionals”, dared not to openly question the wisdom of such bill, but do so openly and taking on powerful CAR Senior Vice President and Chief Lobbyist, Alexander E. Creel

Some of Mr. Pawera’s questions to CAR are:

· Please tell me, what was the pressing need for this bill that caused CAR to sponsor it?

· Who came to CAR and said ‘please help us do this’?

· When exactly did CAR think it was a good idea to volunteer its members to become the disclosure police and deep-pockets of liability for this bill (and the eight related bills) that only will hurt the members by subjecting us to more lawsuits and higher E&O fees?

· Why is this bill being rushed through on a fast track, without adequate time for AN INFORMED analysis and response?

· Why as the sponsor, did CAR wait until almost the last minute to solicit the support of members?

· Given the deleterious effect this bill will have on members, let alone the public in general, why didn’t CAR solicit member opinions prior to ever sponsoring the bill?

· As for the bill(s) itself, SB670 completely undermines Civil Code Section 711 (even with the more recent proposed change of “adding” a subsection rather than full amendment to the actual code section), which has been in existence and served Californians well since the late 1800s.

· Why do you think it would be a good to create legislation to protect one class of homeownership but not another?

· You do realize that excluding owners of CIDs from this bill will serve only to validate, if not exacerbate, the abuses they have suffered under the Davis-Stirling Act?

· Why do you think any realtor would support legislation where he/she will be responsible for enforcing the new disclosure laws, and assuming the various risks attached to statute, all to protect a third party, unrelated to the transaction, and the private liens and transfer taxes that benefit those parties?

· If the goal of the bills was really to protect Californians from the problems we’ve seen with runaway and unaccountable private liens and transfer taxes, there are definitely better ways to do it than deceiving the membership, and rushing poorly thought out legislation into law, for which we will all inevitably pay the price.

So now that SB 670 has been defeated and that Mr. Pawera will surely be labeled as a “traitor” by CAR, all those living in CID/HOA environments can go back to a state of “Clueless in my CID/HOA”, right? If you think so, perhaps you can also consider other popular wisdom such as:

Ignorance is Bliss
What conflict of Interest?
Stupid is as stupid does
Micro-management
And if you think that way, you may want to consider that just like all those airport near misses, this is just the tip of the iceberg!

For legislation contact information, click here, find your representative and let them know how you feel – unless you are Clueless in my CID/HOA!



Other contact information:

James W. Litz
Government Affairs Director
Beverly Hills Greater Los Angeles Association of REALTORS®
8501 Wilshire Blvd. #340
Beverly Hills, CA 90211
P: 310-704-2767
F: 310-652-4451
Alexander E. Creel

Senior Vice President and Chief Lobbyist

CALIFORNIA ASSOCIATION OF REALTORS®

980 Ninth Street

Sacramento Ca. 95814

(916) 492-5201

(916) 444-2033 (Fax)

alexc@car.org



ACTIVE LEGISLATION

NO on Senate Bill 670

NO on Senate Bill 948

NO on Senate Bill 127

NO on Senate Bill 528

NO on Assembly Bill 563

NO on Assembly Bill 567

NO on Assembly Bill 952

NO on Assembly Bill 980


























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DUI Roving Patrol in Aliso Viejo, Laguna Nigel and Laguna Woods

DUI Roving Patrol in Aliso Viejo, Laguna Nigel and Laguna Woods

May 10, 2007

DUI Roving Patrol in Aliso Viejo, Laguna Nigel and Laguna Woods – Stay Alive, Do not Drink And Drive!

The Orange County Sheriff’s Department will be conducting DUI Roving Patrols in the Cities of Aliso Viejo, Laguna Hills, Laguna Niguel and Laguna Woods on Friday, May 11, 2007.

The Tri-City DUI teams will target areas that have a high incidence of DUI related arrests and collisions. The goal of the program is to reduce the rate at which the citizens of Orange County are killed or injured in DUI related collisions. Through implementation of these events, the Orange County Sheriff’s Department hopes to significantly reduce deaths, injuries and property damage.


























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Wednesday, May 09, 2007

CZ Master Association Board of Directors Candidate's Night Questions

CZ Master Association Board of Directors Candidate's Night Questions

Joseph Morabito, former member CZ BOD

May 5, 2007

I regret that I will be out of town for CZ Master Candidate’s Night on May 10, however as a former CZ Board Member who is knowledgeable about CZ issues, I thought I would provide a list of questions to pose to the Candidates for those interested. This list is going to current CZ Board Members since they are on my e-mail list and others including all Delegates that I am aware of so none of these questions should be a surprise for the Candidates should you choose to pose them.



Do you support giving CZ revenues or subsidies to outside groups as is currently occurring?
Do you believe that CZ should otherwise subsidize outside groups if it means dues increases for CZ Members?
Do you support leaving the Oakview/Oakknoll gates open in violation of a legal agreement that was a condition of development thereby breaching our security and exposing CZ Members to additional liability?
In view of two dues increases in just two years, will you take the No New Dues pledge for five years unless there is an emergency that impacts our common areas which could mean that you will look to other revenue sources than CZ members to fund any increases in cost?
Did you support the firing of the CHP with nothing to replace it?
Do you support the formation of a Community Services District advanced by Mr. Varo and Mr. Mezger which is likely to raise our Property taxes?
What initiatives would you advance to lower CZ expenses without cutting services?
How would you deal with the need for landscaping renovation all over Coto?
Do you support expansion of CHP hours in Coto and if so how would you pay for it?
Would you have voted to pay $45,000 to obtain 13 “Free” trees if you had been on the Board when that was approved?
Will you support direct popular elections for the CZ Board in accordance with the spirit of new laws currently on the books in California to replace the current Delegate electoral system?
We are selling various services at our gates, including the services of a sitting CZ Board Member’s wife, using the guards paid for by our Members to distribute advertising with the revenues going to CotoCAN rather than coming back to CZ. Do you support this activity?
What would you do to make the financial dealings of the Association more transparent including revealing the true cost to maintain the Sports Park ?
What does CZ Board Member fiduciary responsibility mean to you?
Are you a strict constructionist or loose constructionist specific to CZ’s governing documents?
What should CZ’s position be specific to the Estates and Village tracts and the Country Club and Equestrian Center that add to CZ expenses yet pay no CZ dues?
How would you deal with critics of the Board? Do you think it is right to send threatening legal letters to critics in an attempt to silence them?
What can CZ do to better our relationship with the CHP? How do you feel about the current CZ Board President referring to the CHP in public as “Extortionists”
How would you fund the maintenance of the Sports Park roughly estimated to be about $300,000 a year?
What is CZ’s mission?
Do you think it was appropriate for CZ’s current Board President to endorse a political candidate as President of CZ?
Do you support the formation of an on-going Supplier Selection and Contract Management Committee headed by a Board Member but composed of CZ Members to deal with buying all goods and services for CZ to extract the best contract terms and conditions and price through use of purchasing department techniques used in business. If not, how do you propose to get this done?
Do you believe that all major contracts should be bid out on a three year basis to test the market?
Do you support positioning Keystone’s Executive Director as a CZ employee reporting to the Board thereby breaching the agent relationship necessary to shield CZ from employment practice liability as is currently occurring?
Do you support spending over $300,000 a year, the current expenditure, on Universal Patrols?
What expense would you cut to put more money into Landscaping Replacement/ Renovation?
What should be done with the Welcome Home Center and/or would you support a Special Assessment to build an office building at the Welcome Home Center ?
What should be done with the final parcel of land at the Sports Park ?
What would you do to deal with speeding on our streets?
What would you do to deal with vandalism in Coto probably committed by Coto kids?
How would you enforce more stringent security at our gates assuming you support the concept?
Would you have voted for two dues increases in the last two years without first dealing with subsidies and revenues going to outside groups?


It would be great if we could have all the answers to these questions and any others of concern dealt with on Candidate’s night so that Delegates can clearly see what each candidate stands for before the voting. Joe Morabito



Excellent list – shows an intimate knowledge of association affairs, and a good argument for new board member to reach out to former board members to make sure the proverbial wheel is not re-invented.

Looking at the CZ board candidates, the responses for the most part are obvious – on one side there is Messes Varo/Mezger/ Schlieder, and then the other candidates.

Seems like the questions are designed for the delegates than for the candidates. Depending on how the delegates respond to these questions, then they can choose Messes Varo/Mezger/ Schlieder, or other candidates.- Buzz
























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Tuesday, May 08, 2007

Coto CHP Pro-active Traffic Patrol Cause-Effect

Coto CHP Pro-active Traffic Patrol Cause-Effect

May 7, 2007

The CHP enforcement hours for March 2007 are 60% below the monthly enforcement hours since the Varo/Mezger board was coerced intro bringing back the CHP (after 2005 traffic fatality). This significant drop in enforcement hours just happens to coincide with the CZ Master Association board of director's decision to change CHP contract renewals from the standard yearly basis to quarterly.

In the past, the number of citations per enforcement hour has been roughly one citation per enforcement hour. In March, the number of citations/CHP enforcement hour increased to almost two per hour!

Might this be because the word on the street is that CHP enforcement is inconsequential?

Let’s face it, Varo’s publicly hostile attitude toward the CHP can’t be good for the relationship. Varo and Mezger never wanted the CHP in Coto and they are getting their wish. Remember, they were concerned that their country club friends might get cited for DUI’s going home from the club. Joe Morabito

We said it before the two recent traffic fatalities (up to one week before the first fatality). We said it after and will say it one more time: This “devil may care” attitude toward public safety in general and pro-active traffic patrol specifically is tantamount to depraved indifference and is begging for the third traffic fatality! - Buzz











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Monday, May 07, 2007

Private Transfer Tax - Good for the Common Interest Development (HOA/CID) Industry or Good for the Politicians?

Private Transfer Tax - Good for the Common Interest Development (HOA/CID) Industry or Good for the Politicians?

May 7, 2007

When we received our copy of the report that the California Association of Realtors (CAR) used to Sponsor and help draft transfer fees, we were confused. Given that Vanitzian has become an icon in Sacrament (some say a thorn in the legislature's side), we asked her what she thought of the CAR's Final document.

"There's nothing to think about, the document speaks for itself. It's useless. It plays on, and manipulates the vulnerabilities of both unsuspecting real estate salespersons who support and trust their organization, and all consumers who are trying to make a living, feed their families, and pay their mortgages" said Vanitizian. She added "Senate and Assembly Bills like these that CAR sponsors and supports, are bad for the California economy and give industry a bad name."

So, now judge for yourself – following is the Final Report: Private Transfer Tax Task Force


--------------------------------------------------------------------------------

Final Report: Private Transfer Tax Task Force

October 5, 2006

The Task Force was appointed in July, 2006, with the following charge:

Mission Statement:

1. Become familiar with how various forms of private transfer taxes (PTTs) operate. Generally, PTTs are fees imposed on sellers and/or buyers by way of a deed restriction requiring the payment of a fee based on some percentage of the purchase price each time the home transfers.

2. Determine what, if any, problems PTTs present for REALTORS® in their role as agents for sellers and buyers.

3. Make recommendations as to what, if any, actions (legislative or otherwise) C.A.R. should take with regard to PTTs and report to the C.A.R. Board of Directors at their October Board meeting.

Members:

Lawrence Fargher, Chair

Ilse Cordoni

Greg Galli

Stephen Hanleigh

Brian Holloway

James Irving

Peter Morris

Leslie Munger

Frank Nelson

Dianne Rath



Meetings:

August 2, Burbank

September 6, Oakland

October 4, Sacramento

Status/Summary. “Private” transfer “taxes” (PTTs) are increasingly being used to settle disputes between environmentalists and builders or, in the alternative, by builders to proactively avoid a lawsuit by environmentalists or to smooth development negotiations with the local government. Typically, in return for an agreement by the environmental group to not pursue a lawsuit based on one of the state’s environmental protection acts, the builder agrees to the imposition of one or more PTTs through a covenant included in the CC&Rs. These PTTs have totaled as much as 1.75 percent of the purchase price of a home and is paid by every buyer of a home in the development for 20 to 25 years or, even, in perpetuity. The monies generated by a PTT can be used for everything from environmental mitigation to the development of affordable housing.

Some believe that PTTs usurp functions that properly belong to local government and, as a result, that the imposition of PTTs should be limited, prohibited or, at a minimum, that the existence of a PTT should be explicitly disclosed to potential home buyers.

Problems. The task force concluded that PTTs present the following problems:

1. A PTT can be imposed by a developer for an excessive number of years. Generally, the minimum length of time that PTTs are currently being imposed ranges from 20 to 25 years; however, many are imposed in perpetuity.

2. The cost of a PTT can be prohibitively expensive for home owners and buyers. PTTs of up to 1.75 percent of a home’s sales price have been seen; however, there is no upper limit on the percentage of a home’s sales price at which a PTT can be set.

3. PTTs can be levied on individuals who already have to stretch financially to buy a home. PTTs imposed on affordable housing only serves to make that housing less affordable.

4. The requirements for disclosing the existence of a PTT are limited at best. In addition, the PTT requirement can be masked by the developer by not having it apply to the first buyer but having it, instead, apply only to subsequent buyers.

5. There is no guarantee that PTTs will be imposed only on what are generally considered legal transfers of title; determining which transfers are exempt from a PTT is the exclusive province of the developer. For example, placing a home into a trust or a transfer between a parent and his or her child could theoretically trigger the requirement to pay a PTT.

6. There is no limit to the number of PTTs a developer can impose. Multiple PTTs have been imposed by developers on each home in a development with each PTT funding a different purported benefit.

7. The funds generated by a PTT can be used to pay for projects that do not directly benefit the development or the immediately surrounding community. Individuals living in a development in which a PTT has been imposed may be shouldering a disproportionate burden in that they are paying for things that, in many instances, benefit the general public.

8. The nonprofit organizations that receive PTT funds are not required to account to any independent oversight entity and, as a result, there are no assurances that these organizations will work to achieve the goals with which they have been entrusted.

9. The nonprofit organizations that receive PTT funds are not required to limit their administrative costs to those that are reasonable and necessary. As a result, funds intended to pay for specific projects may, instead, end up as salary increases for nonprofit administrators.

10. The developers that impose PTTs are not required to coordinate the project benefits for which PTT funds are generated with the general plan of the local city and, as a result, those supposed benefits may be at odds with those in a city’s general plan. For example, land which a city is planning to develop for housing might instead be preserved as open space by the nonprofit receiving PTT funds.

Possible Solutions. The task force considered the following possible solutions:

1. Legal action challenging the legality of PTTs.

2. Legislation imposing restrictions or disclosure requirements on PTTs that would, to an extent, address each of the problems posed by PTTs identified by the Task Force.

3. Legislation prohibiting the imposition of a PTT.

Evaluating Solutions. The task force used the following principal to evaluate possible solutions:

A proposed course of action should be taken only if it will advance REALTOR® and consumer interests, and is the alternative that most completely addresses the problems that have been identified.

Recommendations. The task force made the following recommendations:

1. C.A.R. should sponsor legislation to prohibit the imposition of any PTTs.

2. C.A.R.’s Legislative Committee should determine in January 2007 whether legislation is needed in connection with the disclosure of existing PTTs to avoid real estate licensee liability associated with that disclosure.

C.A.R.’s Standard Forms Committee should determine whether a separate form is needed that would be provided by sellers to buyers at the time a home is listed (or, if not listed, at the same time at which the Transfer Disclosure Statement is required to be provided) disclosing to the buyer the existence, cost and duration of any PTTs. In addition, the Standard Forms Committee should determine if information relating to PTTs should be included in the statewide advisory and/or in the buyer advisory.











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OCR Paraphrasing in Laguna Woods Village - Clarification

OCR Paraphrasing in Laguna Woods Village - Clarification

May 7, 2007

We published an article in the May issue of the CotoBuzz Journal titled OCR Paraphrasing in Laguna Woods Village. In the article we quoted sources as saying " ...On Monday April 23, 2007, a letter in response to Mr. Portlock’s statements as published by the OCR, was hand carried to the LWV Globe. The editor assured the author that the letter would appear in the April 26, 2007 edition of the Globe paper. The letter was not printed as promised. Cheryl Walker (LWV Reporter) was asked why the letter was not published and her response what that they lost it!"

Today (May 7, 2007), the CotoBuzz Journal offices received a call from a person who identified herself as Cheryl Walker and demanded a retraction, otherwise "you will hear from our lawyers"!.

When we asked why a retraction was necessary, the person told us that the letter alluded to above was not "lost", rather mis-filed.

Although we have the information in writing from our sources, (hence no danger of mis-interpretation), we have not attempted to confirm whether these sources heard "lost" or "misfiled", however, to give Ms. Walker the benefit of the doubt, there you have it, we stand corrected - according to Ms. Walker, the letter was not lost, only misfiled














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: Coto de Caza ™, Rancho Santa Margarita ™, CZ™ ™, the Dove and the Dove Canyon ™, are trademarks of @WEBO.

Sunday, May 06, 2007

How to Communicate with the CZ Master Association (and other HOAs)

May 6, 2007

Recently a CotoBuzz contributor received a stupid lawyer letter stating that the CZ Master Association board would no longer accept his requests via email.

A HOA resident addressed a similar question to LA Times Associations columnists Glassman & Vanitizan. This time however, the homeowner’s preferred communication was via snail mail: “The board keeps telling me they sent me an e-mail and if I didn't get it, then that's my problem. I rarely receive the board transmissions, so I've asked them to stop e-mailing me. I want only hard-copy communications, but the board refuses, saying they can send out notices in any medium they want. Is that true?” – LA Times Associations column E-Mail-only policy doesn’t fly, May 6, 2007

The columnist’s response: “Absent that written request, the board must communicate in one of the other ways permitted by Civil Code section 1350.7, which titleholders should review very carefully. It is the owner's responsibility to be aware of them and request a particular method of delivery…. Titleholders should make their preferred method of delivery known in writing to the board in a way that is well documented.”

The official version of Civil Code section 1350.7 can be found at http://www.leginfo. ca.gov . Click on "California Law" and search the Civil Code for sections 1350 to 1378.


Questions to LA Times Associations columnists can may be e-mailed tonoexit@mindspring .com.









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Who Decides 2007 CZ Master Association BOD Composition? You Do Not!

Who Decides 2007 CZ Master Association BOD Composition? You Do Not!

May 6, 2007

Who decides if incumbents Varo, Mezger and Schlieder get another term in the CZ Master Association Board of Directors May 24, 2007? Contrary to the spirit of California CID legislation reform, as of now, CZ residents have not say in the outcome.

It is all in the hands of the district delegates (See below for list of delegates)

Here is what CZ residents will get with the 2007-2008 CZ BOD:

Mezger: Despite the first two traffic fatalities in the history of the community recorded in his watch, the CHP& Sheriff’s data showing worst crime & vandalism & DUI at an all time high, a vilified CHP (by Varo/Mezger) and countless stupid lawyer letters to intimidate and ultimately silence critics, the situation with publics safety “has vastly improved over the last four years” - Mezger's candidacy statement

Varo: Continues to make the argument for turning Coto into a city. NOTE: According to state law, all correspondence to and from government officials is presumed open to the public. Supervisor Bates has yet to respond to request for requests for funding from RSM, Ladera Ranch and Coto de Caza leaders.

Schlieder: Wants to work with Keystone (with or without pay, we do not know) on contract and bid preparation and purchasing - (Keystone's job IS to manage vendors!) The Varo/Mezger boards are already helping out Keystone hiring a general manager, “since Keystone is unable to hire the right people”! - Varo's argument for hiring directly a general manager

CZ District delegates who can decide for status quo:

DISTRICT NUMBER
DISTRICT NAME
DISTRICT DELEGATE

1
Ranchos Colinas (sub-association)
Chris Anderson

2
The Forest/Tiara/The Arbours/Lyon
George Thagard

3
The Terrace (sub-association)
Ronald Goulden

4
Grand Coto II
John Smead

5
Coto Country Homes
Darrell Starnes



6
Fairway Oaks (sub-association)
Karen Martin

7
East Hills/East Point
Robert Alberts

8
Los Verdes (sub-association)
Marilyn Carrabino

9
Oakmont
Xochitl Yocham*

10
Stonehedge
Andrea Owen

11
The Trails/Master Collection
Terry Corwin

12
Summerfield
Corey Ferguson

13
Hillsboro
Steve Zipperman*

14
The Greens
Debbie White

15
The Woods/Arroyo Sur
Roy Allen

16
Fairway Estates
Peter Roth

17
Meritage
Preston Walrath

19
The Classics
Andrew Holzmann

20
Chantemar
Lyle Schlieder

21
Canyon Estates
Robert Curran

22
The Legacy/Enclave/Stonefield Estates


23
The Pinnacle
Arlene Kraft

24
Greystone Villas (sub-association)
Don Wegner



25
Andalusia (sub-association)
Ken Bernstein

26
Oak Ridge
NO DELEGATE

27
Tanglewood
Steve Foster

28
Glen Eagles
NO DELEGATE

29
Montecito
Bill Bushek

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
Wolfgang Greinke

34
Crooked Oak
Elaine Hamill

35
Courante
Terry Kwit

36
Part of Atherton/Part of Weatherly
William Linas

37
Southern Hills Encore
Vincent Hylka

38
Terrazza
Nick Newsom

39
Silver Creek
Mary Spicer

40
Rosewood
Tracy Fortier,

41
Spring Hill/Chatham
Joan Walters

42
Stonefield Private Collection/San Marino
Jerry Mezger*

43
Oak Knoll (sub-association)
Su Walcher

44
Oak View (sub-association)
Mitch Hill

45
Terra Vida
Michael Lane

46
Valle Vista
Bob Varo*


NOTE: * Denotes current member of the CZ Master Association board of directors.












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: Coto de Caza ™, Rancho Santa Margarita ™, CZ™ ™, the Dove and the Dove Canyon ™, are trademarks of @WEBO.

Saturday, May 05, 2007

Of Trial Lawyers, the AAJ and the Democratic Party

Of Trial Lawyers, the AAJ and the Democratic Party

May 5, 2007

The National College of Advocacy and AAJ Education maintain two distinct programs that recognize AAJ lawyer member efforts in pursuit of advanced legal learning and professional development—the Achievement Recognition Program and Advanced Studies in Trial Advocacy.

Thanks in part to the AAJ, the Democratic party was able to win the last election – and now it is payback time –so that trial lawyer members can continue their efforts in draining the competitiveness out of the country.


--------------------------------------------------------------------------------

Example of paragon of legal profession questioning:

Attorney: What happened then?

Witness: He told me, he says, "I have to kill you because you can identify me."

Attorney: Did he kill you?











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: Coto de Caza ™, Rancho Santa Margarita ™, CZ™ ™, the Dove and the Dove Canyon ™, are trademarks of @WEBO.

Broadcast/Journalism Students - Spend Summer in NYC for free!

May 5, 2007

Spend your summer in New York City and gain the experience needed to start your career as a journalist!

NBC Universal and NAHJ are offering two students the opportunity to
become NBC fellows and join one of the following NBC News programs for the summer of 2007:

America's # 1 morning news program, the Today Show,
The top ranked evening news program, Nightly News with Brian Williams
Primetime NBC's own Dateline
One of NBC's local Owned and Operated Stations
Two students will be provided a stipend in the amount of $500 a week
for 10 weeks to live in New York City, totaling $5,000 for each
student.

For more information visit NAHJ's website: www.nahj.org

To download the application
visit: www.nahj.org/educationalprograms/NBCFellowship.pdf

APPLICATIONS MUST BE POSTMARKED BY May 8, 2007












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: Coto de Caza ™, Rancho Santa Margarita ™, CZ™ ™, the Dove and the Dove Canyon ™, are trademarks of @WEBO.

Barnum Opens at Saddleback College Civic Light Opera

Barnum Opens at Saddleback College Civic Light Opera

May 5, 2007

Saddleback College Civic Light Opera is opening its 30th anniversary season with Barnum on June 8 – 24, 2007.

Opening Night, Friday, June 8, 2007, at Saddleback College ’s McKinney Theater, will include lively circus activity in the courtyard. Dates: June 8, 9, 15, 16, 22, 23 @ 8:00 p.m. and June 10, 16, 17, 23, 24 @ 3 pm. Ticket prices: $36 for General Admission, $33 for Students, Seniors and members of the Angels Organization, $25 for Children 12 and under, and $30 for groups of 20 or more. For season subscription plans and additional ticket information call the Saddleback College Department of Fine Arts Box Office at (949) 582-4656 Noon to 4:00 p.m. weekdays. Saddleback College is located at 28000 Marguerite Parkway in Mission Viejo .

The Saddleback Civic Light Opera is sponsored by the Angels for the Arts of Saddleback College, whose mission statement is to raise awareness and financial support for the Saddleback College Performing and Visual Arts programs by attracting top artistic talent and funding for the cultural entertainment, education and inspiration of the campus and local communities



















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SADDLEBACK COLLEGE ART STUDENT WINNERS ANNOUNCED

SADDLEBACK COLLEGE ART STUDENT WINNERS ANNOUNCED

May 4, 2007

The winners of the Saddleback College studio art students show have been announced:

Lynn Madison Oliva, Sumo vs. Jacket, Best of Show.

2D First Place: Lindsay Buchman, Manhattan;

2D, Second Place: Joan Sachs, Secrets II;

3D, First Place: Norma Vance, Beginnings I,

3D, Second Place, Emilia Sadeghi, Sleeping Peasants;

Jewelry: First Place, Janine Sun, Queen Hass;

Jewelry, Second Place, Gene Huizenga, Red headed Strangler;

Photography, First Place: Barbara Gorden, Turquoise Door,

Second Place, Katee Heagen, Untitled.

There is still time to see these diverse and innovative works at the Saddleback College Art Gallery . The Gallery hours are Monday – Wednesday, Noon to 4 p.m.; Thursday evenings, 4 – 8 p.m. The last show is Wednesday, May 9, 2007

The Gallery is located adjacent to the McKinney Theatre.















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The CotoBuzz Journal P.O. Box 154 Trabuco Canyon, CA 92678 (509) 355-8895

Cinco de Coto: Name calling Vs. Name Thinking

Cinco de Coto: Name calling Vs. Name Thinking:

May 5, 2007

After defendant has been sentenced to 90 days in jail:

Defendant: Can I address the court?

Judge: Of course.

Defendant: If I called you an extortionist, what would you do?

Judge: I'd hold you in contempt and assess an additional five days in jail.

Defendant: What if I thought you were an extortionist?

Judge: I can't do anything about that. There's no law against thinking.

Defendant: In that case, I think you're an extortionist!














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The CotoBuzz Journal P.O. Box 154 Trabuco Canyon, CA 92678 (509) 355-

Paraphrasing President Carter and the OCR

Paraphrasing President Carter and the OCR

May 5, 2007

An article titled Carter Brings Message to UCI published in the March 4, 2007 issue of the OC Register quotes President Carter as saying The Palestinian People are being persecuted horribly” and “are heavily dependent on Arab countries just for food and water”. The article then describes how President Carter offered to help raise money to send University of California Irvine (UCI) leaders to occupied Palestinian territories.

In the March 4, 2007 issue of the Wall Street Journal, the article titled Some Women See Escape in Their Martyrdom, describes how “Palestinian women who sign on to become suicide bombers often are driven by something other than desire for vengeance against Israel. For many, terrorism offers escape from dire circumstance – the looming punishment for an extramarital affairs, or the prospect of an undesired marriage”.

The OCR also quotes President Carter as saying that “In Israel, there is debate. An in Europe. In America, no debate”. On December 14, 2005 the AP reported that “ Iranian President Mahmoud Ahmadinejad said Wednesday the Holocaust is a "myth" in another sharp attack on Israel's right to exist that drew immediate harsh criticism from both the Jewish state and from Germany and the European Commission”

Perhaps President Carter would be willing to raise funds to send Coto de Caza Leaders to Iran to see how to properly manage a community?















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The CotoBuzz Journal P.O. Box 154 Trabuco Canyon, CA 92678 (509) 355-8895

Sunday, April 29, 2007

CHP in Coto - Big Mouth Bob

CHP in Coto - Big Mouth Bob

By Joseph Morabito, former member CZ Master Association Board of Directors

April 2, 2007

Hello All: I have heard that CHP officers are not volunteering to work in Coto even for the time and a half pay they would earn. So, we are not even getting the 40 hours a week that was the original deal under Glisson/Rose. It would seem that Bob Varo though his big mouth, open and public hostility to the CHP has turned them away. Folks, we need pro-active traffic patrols in Coto.

We have had two tragic deaths on our streets in the time period there was no CHP in Coto. CZ is in the middle of a very serious lawsuit over an accident in Coto that we could lose.

What we don’t need is Bob Varo sitting on the CZ Board for another term. At the moment, the only realistic avenue open to Coto is the CHP. Varo and his friend Supervisor Pat Bates want to raise our taxes through formation of a Community Service District that would allow the county to add Sheriff hours in Coto for even more of our money. Varo will now use the fact that the CHP is not interested in our business because of his actions as an excuse to vote for a CSD which would raise our taxes. Isn’t it bad enough that Varo/Mezger have raised CZ dues two times in two years because of their fiscal mismanagement and nothing more. Now Varo wants to raise our taxes too.

Clearly, we need a CZ Board President who can properly represent CZ Members to the CHP. Who can blame the CHP for walking away from CZ given Bob Varo ’s intemperate remarks? Mr. Varo after all did refer to the CHP as “extortionists”. The only extortionists I know in Coto are Bob Varo and Jerry Mezger who have taken another $800,000 from our Members in the last two years through two dues increases that could have been avoided. Now that really is extortion. Joe Morabito

Hi Joe:

Reading Mezger’s candidacy statement (for a seat on the 2007 CZ Master Association Board of directors) and your perspective on pro-active traffic patrol, people would think you have your facts wrong – or a matter “of policy” as board supporters may argue.

According to Mezger, “safety has never been better”! – so just turn Coto into a City!

On the other hand, according to Schlieder’s candidacy statement, Keystone is in dire need of help with contract preparation and purchasing. If a service provider paid to do a job needs help from a part-time volunteer domain expert, we are doomed.

The facts of course are on your side. How can the board even come close to telling the CHP the number of enforcement hours needed in Coto, when the board has failed to follow the Supplier Relationship 101 Guidelines? – calling CHP management extortionists in open board meetings, is not only plain stupid, is just plain moronic!
Hello All: I would say normally if one is trying to develop a business partnership, calling the potential partner an Extortionist is not the best way to further the relationship. Varo has made it known on numerous occasions that he dislikes the CHP and would rather have the Sheriff in Coto. I really don’t care who provides pro-active traffic patrols in Coto as long as my CZ dues and property taxes are not raised to buy the service since I know we already pay more than enough of both to pay for these services. Bob Varo inappropriately endorsed Pat Bates as CZ President. He bet right, so now he needs to bring home the bacon. We need about $400,000 from the county to pay for 50% of the Sports Park maintenance and 80 hours a week of CHP time (assuming an adult on the CZ Board can make peace with the CHP so we can get it the hours from them). Big Mouth Bob needs to use his Big Mouth with Supervisor Bates to get this money for Coto. If he can get it done, even I would extend congratulations. After all, Glisson/Rose which Varo/Mezger continue to deride got blow dried Supervisor Tom Wilson to pay for the first year of the CHP in Coto at $120,000. Glisson/Rose scored. Varo/Mezger have a big goose egg to show for their political acumen. I guess if you want a job done, you have to send in a smart woman to make it happen. Xochi, the only one on the current CZ Board that fits that description is you. Joe Morabito



P.S. It is appropriate for Lyle Schlieder on some one on the CZ Board to head up a Supplier Selection and Contract Management committee if that is in the works. Industry insiders no matter who we use as our property manager are too cozy to properly represent our interests. It does need to be a Board Member and CZ Members to get the job done properly. Trust me on this. I saw it first hand.

Agreed with you on al counts.

From all the evidence we have available, we do not trust Keystone as a property management company.

We also agree that a board member should oversee the Supplier Management activity.

We continue to emphasize that the board needs to develop key business metrics to hold service providers accountable, including Keystone. I our opinion, and contrary to Schilieder’s statement, the focus should not be “to help Keystone with contract preparation and purchasing” - Buzz













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The CotoBuzz Journal P.O. Box 154 Trabuco Canyon, CA 92678 (509) 355-8895

Saturday, April 28, 2007

How many times must the CZ safety committee be formed before it can be called an association committee?

How many times must the CZ safety committee be formed before it can be called an association committee?

April 28, 2007

A 2006 CZ newsletter proudly announces that the “CZ Master Association Champions Public Safety Committee”,

During 2006 general CZ board meetings, the board appoints a chairman and various public safety committee members.
A 2007 CZ stupid lawyer letter states the safety committee is not an association committee

The May 2007 CZ Presidents letter refers to the “recently formed public safety committee …undertaking the task of defining and drafting Emergency Preparedness plans and programs”

All this after the first two traffic fatalities in the history of the community.

All this after the highest crime and vandalism rate in the community.

All this after the Sheriff mounted units have been deployed to patrol the horse trails and the private security guards help kids cross the streets and the CHP patrol hours dropped from 150/month to only 50/month!

As Joe Morabito might ask: Who is minding the CZ public safety store?

How many times must the CZ Safety committee be formed, before it can be called a CZ association committee? The answer my friend, is blowing in the wind, the answer is in the corrupt CZ election process!

Does anyone know if there is a Safety Committee? If so, who is on it? Who is the Chairman or Chairwoman? If the Committee exists, what is their function? Do they report to the Board on a regular basis with recommendations? Does the right hand know what the left hand is doing? Or as Costello once said to Abbott, “Who is on first”? Perhaps, Jerry Mezger or another CZ Board Member can answer these questions. This topic certainly should not be very controversial! ! JM

For what is worth, the “safety committee” recently replaced the CotoCan committee in the CZ website days ago, – as shown below:

Not significantly different from the one announced by the CZ board in 2006.

Public Safety Committee - Chair: Phil Mitchell; Members: Kurt Vasentine, Bill Bushek, Yo Orduno, Andrea Owen, Mike Channing, Gary Markowitz, John Walsh, Elizabeth Zipperman – as shown in the CZMaster.Org as of April, 2007.

Unless we get an explanation from the board, we are assuming the stupid lawyer letter stating the safety committee is not an association committee refers to the one above. Buzz

So there is a Safety Committee? What are they in business to do? Has the CZ Board that appointed them given them a charter? Is there to be some report within some period of time or is this just another “Feel Good” exercise. Look the reality is that we probably need double the number of CHP hours that we currently contract for because the original 40 hours a week that was purchased by the Glisson/Rose Boards was before we took over the rest of South Ranch. So we now probably need 80 hours a week. And, rather than have the Sheriff patrolling horse trails, the sheriff should be patrolling our streets. Gosh what a common sense idea? Further, maybe we should have Neighborhood Watch in Coto. The Sheriff’s Department will come in for free to help set that up. Finally, we have many bad curves and dangerous blind spots on Vista Del Verde that need some attention, caution signs, mirrors etc. So, what else does the Safety Committee have to talk about? JM

CZ Master Association Candidates Night May 10, 2007

CZ Master Association Candidates Night May 10, 2007

April 28, 2007

The CZ Candidate’s Night has been scheduled for May 2007 at 6:00 pm at the Golf and Racquet Club.

Contrary to the spirit and the law of the recent democratization of Common Interest Developments, such as the CZ Master Association, the three open seats in the (2007) CZ Master Association board of directors will be filled during the upcoming meeting of the CZ delegates scheduled for May 24, 2007 at 6:00 pm in the Racquet club.

Varo, Mezger and Schlieder are seeking a new term.

Mezger: One of Mezger’s self-described accomplishments is the fundamental recognition that CZ Master Association is much larger than most homeowner’s associations, and despite the first twp traffic fatalities, the CHP& Sheriff’s data and stupid lawyer letters, the situation with publics safety “has vastly improved over the last four years”



Varo: Continues to make the argument for turning Coto into a city



Schlieder: Wants to work with Keystone on contract and bid preparation and purchasing – Is this the Fox watching the hen?

Friday, April 27, 2007

Less Orange County Register Paraphrase, More Feeling?

April 27, 2007

Is it coincidental that fiscal responsibility, accountability and transparency, including funding of the Sports Park have dominated the Coto Discussion Forum for the last couple of weeks, and then what do you see on the cover of the April 27, 2007 CanyonLife?

You guessed it? Volunteers cleaning up the Sports Park!

Also interesting that the byline does not go to OCR reporter Mark Eades, but to Eugene W. Field.

In addition to OCR’s City Editor Melissa Jones and reporter Mark Eades missing in action (MIA), MIA is also the paraphrased Sheriff’s Blotter – the version contained in this issue of the OCR includes the un-paraphrased entry as follows: “Suspicious persons, 1:30 a.m. Coto de Caza: A woman on Via Colinas complained that she heard what sounded like seven gunshots coming from either a rifle or pistol. She said that it also could have been a car backfiring. The woman also complained that she had called the Coto de Caza security, but had to wait an hour before being told to call deputies”

We know that Ms. Jones no longer works for the OCR, and although we predicted that reporter Mark Eades would follow suit, is he simply MIA? Does it matter? Will the community continued to get More Paraphrase and Less Feeling reporting, or the other way around?

Questions Raised RE: Marina Hills Audited Financials/Property Management Company Behavior

Questions Raised RE: Marina Hills Audited Financials/Property Management Company Behavior

Marina Hills and Coto de Caza use same property management company.

April 27, 2007

Hans Strupat, a dissident member of the Marina Hills homeowners association (MHPCA) board of directors has raised questions about the audited financials prepared by independent auditor Robert A. Owens.

In a letter to Mr. Owens published in the SaveMarinaHills.org website, Mr. Strupat writes: " ....often, I am the only director who does not immediately and completely understand the matter to be decided upon. In fact, I am the only board member who has not yet approved your report. Before I can approve your report I need to understand it". Mr. Strupat then outlines a number of questions including questions raised because of the differences in accounting methods used by the the MHPCA and Mr. Ownes, making it nearly impossible to verify whether the audit report is acceptable or not.

Mr. Strupat also outlines issues with the MHPCA property management company, Keystone Pacific as follows:

" I also want to make you aware of the following facts, that you, as auditor, might be interested in. In August 2002 the MHPCA and the management company Keystone Pacific entered into an agreement, that among other things contractually specified the monthly compensation, along with a calculated yearly increase of that compensation, specifically an increase tied to a particular edition of the CPI as reported by the US Department of Labor.

In 2004, and 2005 Keystone side-stepped the agreed-upon compensation and presented the directors with a compensation plan over and above the compensation agreed in the 2002 contract. The then-directors violated the 2002 negotiated compensation plan and paid Keystone more than the CPI would have warranted. On top of that Keystone accidentally increased their own compensation during 2004 and 2005 even higher than the 5% the then-directors had (in violation of the 2002 contract) conceded, and certainly much higher than the 2.6% CPI increase would have warranted. Both these facts were discovered in the October/November 2006 timeframe. As a result, and after some considerable discussion, Keystone returned $3,472.00 excess fees for the 2004, 2005 accidental overcharge. This was reflected in a lower December 2006 management fee. However, as of this date Keystone has not yet agreed to lower the monthly compensation to the level that was negotiated in the 2002 contract, thus every month Keystone takes more money from the MHPCA than was agreed upon. As a result, the accumulated balance, owed by Keystone to the MHPCA, as of December 31, 2006 is $9,136.

The balance owed increases every month. Keystone's monthly charges to the MHPCA are 26% higher than in 2002"

Following up on allegations of diversion of funds with the CZ Master Association, we have written auditor Schonwit & Associates, but have not from them.











Is anyone on the CZ Board minding the store? This letter (from Mr. Strupat to independent auditor Robert Owners) is several more reasons why Varo and Mezger should not be re-elected. Joe Morabito

A Coto Discussion participant writes in part: "Most of what you cite as malfeasance constitutes nothing more than differences in policy. In this most recent example, I fail to see how an alleged issue in Marina Hills has anything to do with Coto. Yes, we have the same Association Manager, but the connection ends there unless you have any additional information"

.......You mean like Keystone “accidentally” overpaying the private security company, then not doing anything reasonable to prevent something like this from happening? Or how about supporting the multimillion dollar firing of Securitas without due diligence? Or what about the meddling of their employees in the 2006 elections? Or what about a “typographical error” that took two years to “correct”, which can have an impact on 2007 elections? Or what about blaming a tickler file for road certification expiration…….and there is plenty more. Those who do not see a connection, I have a Brooklyn bridge for sale! - Buzz



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CZ Master Association Alleged Corruption and Malfeasance

CZ Master Association Alleged Corruption and Malfeasance

By Joseph Morabito, Former CZ Master Association Board Member

April 20, 2007

Responding to a Coto Discussion Forum, Mr. Morabito writes:

Hello All: Since Dave asked me to be specific concerning Varo/Mezger corruption and malfeasance, I thought I would provide a list as follows:

Election manipulation to deny a candidate a board seat when Larkin resigned just one week after the last election. Varo/Mezger knew very well that Larkin had relocated. They did this to manipulate an appointment rather than an elected board member.
The Oakview/Oakknoll Gate issue. The Varo/Mezger CZ Board is ignoring a legal agreement that was a condition of development breaching our security and exposing our Members to unnecessary liability.
Firing the CHP with nothing to replace them when the speeding problem was well documented. The end result was two tragic deaths on our streets during the time period we had no pro-active traffic patrols in Coto.
Subsidizing various outside groups with CZ dues money.
Selling Mezger’s wife’s services at our expense at our gates.
Varo endorsing a political candidate as President of CZ.
Hiding the true cost to maintain the Sports Park .
Hiring an Executive Director placing CZ in the employment practice litigation chain which includes the reporting relationship to the board.
Failing to properly use competitive processes to buy goods and services.
Using the Association attorney in an attempt to silence critics.
Lying about bringing Sheriff’s services into Coto which never were going to happen.
All the games with Committees.
The Welcome Home Center Assessment fiasco when there never was a deal.
The “Free Trees” that actually cost $45,000.
The recent silly study at our expense to determine that we pay taxes.
Using high priced Consultants instead of lower priced staff i.e. a Landscaping Supervisor that has always been assigned to us by the property manager until Varo/Mezger.
Involvement with CotoCAN including having a Keystone employee act as Activities Coordinator at our expense exposing CZ to liability.
Involving CZ in a serious lawsuit specific to one of the accidents on our streets.
Dave, it is late in Portugal ; but if I sleep on it, I am sure I can add to this list. Joe Morabito

Even though all these items have been previously discussed in the Coto Discussion Forum, Jerry Mezger asks for clarification from Mr. Morabito, and get it:

Jerry: YES! YES! YES! Has it taken you all these e-mails over many months to figure out that I and others are accusing you and Varo of Malfeasance that is actionable? Both of you should have been impeached long ago for the many reasons that have been cited on numerous occasions. I am in Spain now and too tired to go over the whole list of your actions that constitute Malfeasance and violation of fiduciary responsibility to represent the interests of CZ Members. Read the list I recently e-mailed to Dave and/or go back two or more years and read all my e-mails to refresh your memory or better yet, I will put another e-mail together with the list just before the next election for all to see. Joe Morabito













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More Homeowner Association Financial Audit Irregularities

More Homeowner Association Financial Audit Irregularities

April 27, 2007

Marina and Coto and other HOA residents may benefit from the GRF ooking at independent financial audits.

Following are excerpts of a letter sent April 25, 2007 to a committee formed by Golden Rain Foundation president George Porlock to look into alleged mis-use of credit cards by property managing company PCM employees:

“ We all may have aged but we are not stupid. ..

The Association of Certified Fraud Auditors found detecting fraud in homeowners association is less likely to be detected by audit. For example, Detection of 46 percent of fraud in small business was detected by accident or whistleblower than through an internal audit. The bad guys know the tricks and we must probe the community to come up with whistleblower evidence for conviction.

We have some very professional and dedicated people to help you in solving your credit card puzzle. We have contacted (Feb. 07) the Treasury Department Internal Investigation Department to investigate credit card embezzlement and the illegal sale of Leisure World property.

There is a reason we as a nonprofit corporation do not have to pay millions of dollars in taxes. PCM has put Leisure World in a position to lose our exempt status for some greedy PCM employees.

We cannot accept responsibility for PCM credit card charges it violates 501 ( c ) 3 Conflict of Interest corporate codes.

George Portlock says,” This what the other boards did in the past and I just followed the same procedure.” We estimate over one million dollars in credit card charges have been made. This arrogance and deceit is overwhelming. You honorable directors can bring back our trust in this community. Please be diligent and help us clean our house before we lose our exempt status.

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When the governor signed legislation to bring direct elections to Homeowner?s associations such as the CZ Master Association, the president of the board called this legislation ?micro-management?, and proceeded to ignore the spirit and the law.

From Safety Committee to Committee to Turn Coto de Caza Into a City - Overview
This brief starts with the firing of a volunteer (early 2006) Public Safety Chairperson for her refusal to give up her free speech rights and promote Coto for city, before public safety.The president of the CZ Master Association board promises to fire...

Direct Democracy in Coto de Caza? CVSC an object lesson in direct democracy
California is arguably the leading direct-democracy state in the US - just look at Sacramento.Yet, even when the state legislature mandates direct elections for Common Interest Developments such as the CZ Master Association, AND we propose the...

When is a Homeowner Association Committee not a Committee?
More than 85 cents of every CZ dues dollar goes to either the gardener or the private security guard. Regularly either the OC Register, the CZ newsletter or the CZ president?s letter extol the virtues of the gardener, the private security guard or the...

CZ Master Association Waste of Money - Letter to Pat Bates by Joseph Morabito, former member CZ Master Association BOD
Sergio: As Supervisor Bates representative, I am writing you as a long time Coto resident and former CZ Board Member to complain about Supervisor Bates agreeing to

Saturday, April 21, 2007

Homeowner Association (HOA) Lawyer Factoids

Homeowner Association (HOA) Lawyer Factoids

April 21, 2007

The Davis-Stirling Act is a part of the California Civil Code. In the Davis-Stirling Act:

The term "attorney fees" is codified/mandated: 22 times.

The term "homeowner" is merely mentioned: 3 times
Is it any wonder that we see so many stupid lawyer letters floating around HOA board of directors?

Is it any wonder that the CZ Master Association board has been using an unprecedented number of stupid lawyer letters?

Might this the reason why we have filed six different complaints with the California Bar against attorneys associated with the CZ Master Association for violations such as:

Rule 1-120. Assisting, Soliciting, or Inducing Violations
Rule 3-310 Avoiding the Representation of Adverse Interests
Rule 3-110 Failing to Act competently
Rule 5-100. Threatening Criminal, Administrative, or Disciplinary Charges

Does this give you an idea as to how effective the industry's lobby is, AND, where their priority $s are?

Is this the reason why CZ does not have direct elections as the state legislature mandates?

While the homeowner has a vested interest in his property, the industry has NO bona fide vested interest in anything other than a pay check through a contract.














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Friday, April 20, 2007

Laguna Woods Residents Outraged by Use of Credit Cards Issued to Property Manager Employees!

Woods Residents Outraged by Use of Credit Cards Issued to Property Manager Employees!

Concerned Residents Speak Up About Fiscal Mismanagement

April 20, 2007

A group of concerned Laguna Woods residents got together April 5, 2007 at the clubhouse to discuss a number of issues including mis-information, intimidation and fiscal mismanagement. There was even talk of the Orange County District Attorney convening a grand jury and the possibility of a class action law suit.

There were over 200 residents in attendance, including a number of various volunteers working on “discovery’ – a research group dedicated to the compilation of factual evidence to support the volunteer's case.

Prominent was the charge that credit cards issued to employees of Managing Agent Professional Management (PCM) employees strictly for emergency use, were being mis-used regularly. Examples include the use of credit cards to purchase $1,316 for candy from the Sees Candies and $981.00 meal at the Claim Jumper. The data presented included a number of outstanding questions as well as recommendations such as:

Who authorized the credit cards/charges issued to PCM staff?

Can the board of directors be held accountable for misuse of credit cards?

Given the reported irregularities, it was suggested residents insist that the board of directors initiate a forensic audit.

A press release dated April 11, 2007, issued by the Residents Voice, a community activist group, follows up on the substantive matter covered during the meeting and indicates that use of the credit cards is a breach of fiduciary responsibility.

Repeated calls to PCM General Manager Milt Johns and PCM CEO Jeffrey Olsen to comment on the allegations were ignored. We did get a call back from a board representative stating that the credit card charges themselves were known to the board for quite a while, and that the board was working on a press release of their own - no time was given for the release of such information.


















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Thursday, April 19, 2007

The end of a Prostituting,.. err Paraphrase Era?

The end of a Prostituting,.. err Paraphrase Era?


April 19, 2007

Prior to the arrival of Melissa Jones to the Orange County Register as City editor, we had extensive discussions with Lyn Montagna (Jones’ predecessor) on the type of responsible community journalism needed for Coto de Caza.

We collaborated with one of Montagna’s reporters, Matthew Green, often. Admittedly he did not enjoy the same access to the CZ Master Association Board of Directors as other OCR reporters, but his work was always well researched and the content balanced. We have yet to see this type of reporting since. What we have gotten instead, is a Varo/Mezger (CZ board of directors) cheerleading squad.

Mark Eades’ (current OCR reporter) predecessor, expressed an interest in delivering such balanced reporting, but we warned her that “is a cost-benefit issue. If you indeed present a balanced view of the issues, ½ of the residents will be on your side. The other ½ will be against you. However, 100% of the residents will know you are honest, ethical and trustworthy. And more than likely, this position may not be consistent with the Register’s management views” – she moved to another position shortly thereafter.

Since then Eades’ “reporting” has been often “paraphrased”, by deed or omission – consider that the tragic death of Mr. Morteza Manian has never been mentioned by the CanyonLife!

So, now that the Jones’ era as the CanyonLife City editor is over, (taken over by Theresa Cisneros), is this the end of a paraphrase era as well?















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The CotoBuzz Journal P.O. Box 154 Trabuco Canyon, CA 92678 (509) 355-8895

Wednesday, April 18, 2007

More HOA Micromanaging – Of Correa, Kingston, CAI and Corrupt Politicians.

More HOA Micromanaging – Of Correa, Kingston, CAI and Corrupt Politicians.

April 17, 2007

When the governor signed legislation to bring direct elections to Homeowner’s associations such as the CZ Master Association, the president of the board called this legislation “micro-management”, and proceeded to ignore the spirit and the law.

This year CAI has changed its tactics, co-authoring with outside groups like: CALIFORNIA ASSOCIATION OF REALTORS!!!. It has already backdoored senate and assembly bills so they don't fly on the homeowners' radar screen, for example: Senate Bill 670 AND Assembly Bill 980

CAI has a new lobbyist: RON KINGSTON. Kingston used to work for California Association of Realtors

His contact info: 916-447-7229 and 916-806-7229 <= he needs to hear how angry we Homeowners are!

RON KINGSTON'S NEW BOSS IS NO OTHER THAN CAI'S LONG TIME LOBBYIST - SKIP DAUM!

SENATOR LOU CORREA IS IN BED WITH CAI - HE WROTE THE BILL AND PUT HIS NAME ON IT: Phone: (916) 651-4034

Presently there are several REALLY BAD BILLS HE HAS MANAGED TO PUT ON THE DOCKET, including Senate Bill 670 AND Assembly Bill 980

KINGSTON has gone on record to say that didn't matter what anyone wanted BECAUSE the BILLS WERE A DONE DEAL!!

HOMEOWNERS NEED TO SHOW HIM AND CAI THESE BILLS ARE NOT A DONE DEAL AND ARGUE HARD AND FAST AND QUICKLY THAT WE DON'T WANT THESE BILLS.

Senate Transportation & Housing Committee: Tel: 916-651-4121 * Fax: 916-445-2209



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Friday, April 13, 2007

Direct Democracy in Coto de Caza?


Direct Democracy in Coto de Caza?

CVSC an object lesson in direct democracy

April 13, 2007


California is arguably the leading direct-democracy state in the US - just look at Sacramento.

Yet, even when the state legislature mandates direct elections for Common Interest Developments such as the CZ Master Association, AND we propose the elimination of cumulative voting and a corrupt delegate systems, the board of directors simply ignores our request.

Current board members and supporters often use the argument “if you do not like the way things are run, either volunteer for a committee or run for the board” – what is not said is that if you volunteer to serve on a committee, but are not willing to give up your free speech rights, your application for a committee is not even acknowledged - Wit the firing of the Public Safety Committee Chairperson in early 2006 - a committee that as it turns out is NOT a committee of the association - but that is a different story!

We chronicles the numerous election irregularities during 2006, some of which have surfaced again in 2007. Further, given that all board members are also delegates, and the use of cumulative voting, simply means that the more candidates for the board there are, the easier it is for the current board to control the outcome of the elections – which is why our predictions have been consistently dead on.

However, long-time Coto residents Randy Brusca and Randy Smith, via simple direct mailers have forced a special meeting of the shareholders of the Silver-Bronze Corporation (SBC), which owns the Coto Valley Sports Club (CVSC) and the Coto de Caza Equestrian Center. The meeting is scheduled for Wednesday, April 18, 2007. If the a motion to recall the board of directors is successful, then there will be an election of a new board of directors.

Regardless of the SBC’s general meeting outcome, this should be an excellent object lesson for the CZ Master Association: If there is a core group of CZ residents willing to fight Cityhood movement, it can start with a direct mailer to CZ residents – and copy Pat Bates!













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Thursday, April 12, 2007

When is a Homeowners Association Committee not a Committee?


When is a Homeowners Association Committee not a Committee?


More than 85 cents of every CZ dues dollar goes to either the gardener or the private security guard. Regularly either the OC Register, the CZ newsletter or the CZ president’s letter extol the virtues of the gardener, the private security guard or the member of the landscaping or public safety committees.


For example, a recent newsletter announces that the “CZ Master Association Champions Public Safety Committee”, then during general CZ board meetings, the board appoints a chairman and various public safety committee members.


When we asked the board to let us see landscape and public safety committee meeting minutes, the response was “Because the Public Safety Committee does not have any records of minutes prepared from January 1, 2006, it is not a committee of the board”!


In keeping with the Davis-Stirling Common Interest Open Meeting Act, the neither the landscaping nor the public safety committees are exempt from providing notice to titleholders of meetings, and generating and distributing minutes from these meetings to the membership.


So the question remains, when is a homeowners association committee not a committee?


Apparently the answer is, as long as the committee is a CZ committee, it is not a committee

Tuesday, April 10, 2007

CZ Master Association Waste of Money - Letter to Pat Bates


CZ Master Association Waste of Money - Letter to Pat Bates

by Joseph Morabito, former member CZ Master Association BOD

April 10, 2007

Sergio: As Supervisor Bates representative, I am writing you as a long time Coto resident and former CZ Board Member to complain about Supervisor Bates agreeing to waste $20,000 of tax payer money and $5,600 more dollars in CZ dues money to conduct a “study” to determine how much Coto residents pay in taxes presumably in order to see if we are getting back what we pay in. This study was no doubt motivated by Bob Varo, the current President of the CZ Master Association, who clearly has demonstrated on many occasions that he does not have a clue concerning the workings of our Homeowners Association and the way government works.

Any one with a brain knows that we pay in far more in taxes than we get back. We don’t need a costly study to tell us that. Obviously, wealthy communities subsidize those who are not wealthy. It is called “income redistribution”. Further, our property tax bills clearly tell us where our money is going which is primarily to support public schools, assessments, the county, fire authority etc. Sales taxes that we pay to surrounding cities go to support those cities so none of that money is coming back into Coto any time soon. In addition, even if the county wanted to take money from the poor in Orange County which other supervisors will correctly never vote for and spend it in Coto, everything in Coto is privately owned which I assume would prevent monies being spent in Coto.

This study is a complete waste of money. If Supervisor Bates can muster the votes, what we need in Coto is more pro-active Sheriff’s patrols and/or paying for the CHP patrols we are buying today. The cost would be about $240,000 a year to get the CHP hours that we badly need. The county did pick up the first year of CHP service when I served on the CZ Board which should have been continued. In addition, since we allow the public to play at our Sports Field at a considerable cost to our dues paying members and subsidy to outsiders and the county, it would be great if the county could pay for 50% of the maintenance of our Sport Park in the proper spirit of community participation which I suspect would be about $150,000 a year. Since we are allowing the public to use this facility, a county contribution can and should be justified. I can’t tell you the 50% amount for sure because the Varo/Mezger CZ Board refuses to reveal the actual cost to maintain our Sports Park . This current CZ Board actually hides the numbers from us because we only charge users about $12,000 a year to use the facility which is grossly less than the actual maintenance cost. This along with general fiscal mismanagement by our current CZ Board is one of many reasons we have experienced two CZ dues increases in just two years.

Finally, while I have nothing against Supervisor Bates and wish her well in her new job, Mr. Varo inappropriately endorsed the Supervisor as CZ Board President. If this study is the pay-back for that endorsement, it is not sitting well with many voters out here in Coto Land . Political endorsements are just not done by ethical members of our CZ Board because our Board should not be involved in politics. As such, many of us are very unhappy with Mr. Varo’s performance as CZ Board President for this and many other reasons. Our fervent hope is that he will be voted out of office in May when we have our elections. Be advised, hopefully you could be dealing with a lame duck. We are mad as hell and we don’t care who knows. Joe Morabito

P.S. We would fervently fight any attempt to create a Community Services District and/or city for Coto that would raise our taxes as proposed by Misters Varo and Mezger. We don’t need an overlay of government in Coto since our Homeowners Association is responsible for all common area property in Coto. A CSD or city for Coto would serve absolutely no purpose that I can see because it is virtually impossible for our HOA to turn over any common area property to any other entity. So no matter what you are hearing for misinformed Varo, forget about it. It will not happen without a major battle. And, if it requires a two thirds vote, the votes will not be there to pass it.

ATTENTION COTO DE CAZA RESIDENTS:

If you are as concerned as we are about this waste of money, send letters to Pat Bates representative Sergio Prince at: sergio.prince@ocgov.com

CHP Patrol Hours Down, DUI-related Accidents Up: Coto de Caza

CHP Patrol Hours Down, DUI-related Accidents Up: Coto de Caza

Traffic Accident Trends - 1Q2007

April 10, 2007

The California Highway Patrol (CHP) reports a total of 6 collision for the first quarter in 2007, one injury and 5 property damage only traffic collisions, for the un-incorporated area of Coto de Caza. Two of the collisions were DUI related.

On an annualized basis, the 1Q2007 rate is identical to the one registered in 2006. - see figure below


Traffic Collision trend - source: CHP


The CHP Public Arrest log shows an increase in DUI arrests for the Canyon Communities, including Trabuco Canyon, Ladera Ranch and Coto de Caza - see figure below

CHP DUI ARRESTS: PERIOD: August 2006 - April 1, 2007
COMMUNITY DUI ARRESTS
San Juan Capistrano 53
San Clemente 46
Santa Ana 25
Laguna Beach 22
Lake Forest 19
Mission Viejo 19
Irvine 17
San Diego 17
Dana Point 15
Los Angeles 13
Huntington Beach 10
Ladera Ranch 10
Oceanside 10
Trabuco Canyon 10
Long Beach 9
Aliso Viejo 7
Anaheim 7
Capistrano Beach 7
Fullerton 7
RSM 7
Newport Beach 6
Tustin 6
Arcadia 5
Carlsbad 5
Costa Mesa 5
Coto de Caza 5
Laguna Nigel 5
Orange 5
Torrance 5




The February 2007 CHP indicates a significant reduction in CHP patrol hours from an average of 150 hours per month to only 50 hours per month. The number of citations averages roughly 1 citation per patrol hours - this may mean that over 100 Coto residents got away without a citation! - that is the good news - the bad news as we previously indicated is that the number of DUI related accidents went up during 1Q2007. CHPs Sgt. Saulman attributed the significant drop in patrol hours in Coto de Caza to a CHP manpower issue. However, this is just another indicator, that pro-active traffic patrol is a necessity within Coto de Caza - much more so than horse trails patrols, for certain.


--------------------------------------------------------------------------------

RELATED STORIES

Coto de Caza?s Bastard Child: Public Safety
In just 15 short months, the community witnessed the absence of the CHP for proactive traffic patrol followed by two tragic traffic accidents. In the last one, the board blamed the victim, although the teen driver eventually pleaded guilty.

CCase for More CHP Hours to Patrol Coto de Caza
Hello All: Last week one night, we got a call from our son Brian because some young kid driving on Coto de Caza Drive attempted to run his girlfriend off the road. Brian reported it to our Security which of course was worthless. I advised him to report...

NY Times "Paraphrase" Military Rape Story - CZ "Paraphrased" Story on CHP Firing
On March 18th, the New York Times published a piece titled ?The Women?s War?, centered around the plight of several female Veterans of the war in Iraq.

CZ Master Association Piggies are Still Fat and Happy and the Chinese V-Factor
Hello All: The good news is that CZ is finally charging non-CZ Members an annual transponder fee. While it is a start, the bad news is that the fee is apparently
















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Saturday, April 07, 2007

Coto de Caza’s Bastard Child – Public Safety

Coto de Caza’s Bastard Child – Public Safety

April 7, 2007

In just 15 short months, the community witnessed the absence of the CHP for proactive traffic patrol followed by two tragic traffic accidents. In the last one, the board blamed the victim, although the teen driver eventually pleaded guilty.

Then there was the firing of the public safety chairperson, allegedly because of the potential for “undue concentration of power”, when in reality it was because she refused to place the board’s personal agenda over public safety.

When the board was coerced into bringing back the CHP after the first traffic fatality, the property manager allowed road certification to expire, nullifying any legal pro-active traffic patrol. Instead of anyone having the intestinal fortitude and admit accountability, the blame immediately went to a missing tickler file.

Then there was the board’s initiative aimed at training the private security guards after numerous complaints. This was followed by an announcement of a new deployment of the security guards to help kids cross the street and the Sheriff’s mounted units to patrol the horse trails. Meanwhile the crime and vandalism data shows the highest rate for the community, ever.

The CZ Master Association’s May 2006 Newsletter prominently announces that the Board of Directors “is formulating a Public Safety Committee in an article with the ambitious title “CA Master Association Champions Public Safety Committee”.

During the July 2006 General Session, the board unanimously approved the appointment of an interim Chair of the Public Safety Committee. Then in the August 10, 2006 General Meeting, the board names 8 members to the Public Safety Committee. Most with little to no experience in public safety, while at the same time denying membership in the same committee to a career public safety professional.

We will not go into the “paraphrased story” by the Orange County Register on the firing of the CHP.. But, then the board tightens the strings on the CHP and holds them to a three-month contract renewal period.

When the board is asked for the 2006 public safety committee meeting minutes, the response is: “Because the Public Safety Committee does not have any records of minutes prepared from January 1, 2006, it is not a committee of the board”! – does this mean that Public Safety is Coto’s Bastard Child?

RELATED STORIES

When is a retraction not a retraction? When it comes from the OCR! In the August 4 issue of the OCR’s CanyonLife, hidden under a picture of the Pet of the Week, appears an inconspicuous paragraph titled Clarification that reads”

“Coto resident Ed Caruso and Board President Bob Varo of the CZ Master Association disagreed on whether Varo, in a private meeting, told Caruso that he planned to fire the California Highway Patrol from traffic duty within the community. A story in the July 14 edition of Canyon Life/Rancho Santa Margarita

Coto de Caza’s Public Safety, A Job For The Mounties - A Paraphrase of the Orange County Register – But, why waste scarce, precious resources patrolling horse trails?

It is no secret that the Orange County Register has been an ardent supporter of the Varo/Mezger administration. There is evidence that the editor collaborated with the board to silence critics, including the CotoBuzz Journal: The OCR board of directors failed to respond to the CotoBuzz Journal complaints for depraved indifference exhibited by the Coto de Caza administration, immediately after the first traffic fatality in December of 2005

First 2006-2007 Coto de Caza Board of Directors Meeting, Standing Room Only! - The first 2006-2007 Coto de Caza Board of Directors Meeting, can best be described as standing-room only, with the local media well represented. A political junkie would have felt right at home, as you could sense the excitement, the energy and the tension in the air!. Failed candidate Dr. Betty Olsen thanked Yocham and Zipperman for their success and wished them the best.

Friday, April 06, 2007

Leisure World and Coto de Caza - One Small Small World!


Leisure World and Coto de Caza - One Small Small World!

Concerned Resident’s Meeting Minutes

April 5, 2007

A group of concerned residents got together at the clubhouse tonight to discuss a number of issues including mis-information, intimidation and fiscal mismanagement. There was even talk of the Orange County District Attorney convening a grand jury and the possibility of a class action law suit.

There were over 200 residents in attendance, including a number of various volunteers working on “discovery’ – a research group dedicated to the compilation of factual evidence to support the volunteer's case.

Prominent was the charge that the landscape budget was grossly mismanaged, but the pièce de résistance was the fact that credit cards issued for “emergency purpose only”, were being used for daily emergencies!. Completely absent was any coverage by the community journalists, even though the issues have been ongoing.

Did we mention that this meeting was held at the clubhouse in Leisure World, and not Coto de Caza? Do the issues seem to be the same, with different names?

Does this support the notion that otherwise upright residents, once they become members of a HOA board of directors immediately start behaving like the guards in the Stanford Prisoner Experiment. Regardless of the community they are supposed to represent?