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MBA

(November 19) Thirty residents turned out for Tuesday night's Rancho Murieta Association meeting to discuss the tentative development agreement reached with the Murieta Holdings developers. The session lasted 3 1/2 hours.

RMA won't act immediately on development agreement, board says

Published Wednesday, November 20, 2002

The Rancho Murieta Association board will not vote on the Mutual Benefit Agreement this month.

RMA President Jack Copeland made the announcement at the town hall meeting on the agreement Tuesday night. He said additional input from the Community Services District, residents and others had delayed the vote until December at the earliest.

Some of the 30 residents attending the forum suggested any action on the MBA should be postponed for 60 to 90 days. That would give the community and the three new board members who will be elected Thursday an opportunity to better understand the document, they suggested.

The 50-page-plus document was released last month. Exhibits that were missing from the document and an outline of the agreement were made available several days later.

Negotiations on the agreement began two and a half years ago at the request of the board, said Director Chuck Christian, who was president of the board at the time.

The board sought legal advice after learning of Murieta Holdings developers Robert J. Cassano's and Gerry N. Kamilos' interest in the undeveloped property owned by the Pension Trust Fund of the Operating Engineers. Christian said the board realized the issue of access to the community over RMA roads could lead to litigation.

Citing previous legal fees that totaled "thousands and thousands of dollars," Christian said the board, after being told by legal counsel that the developers couldn't be kept out, decided to negotiate with the developers rather than fight them.

The agreement that has come out of those negotiations is basically the same agreement that was presented to the community in outline form two years ago, said Copeland. The funding of a new North Gate, payment of RMA dues by residents of the new developments, and payment of Parks Fund contributions for a community center and aquatic complex are some of the provisions that have been public knowledge for the last two years.

Copeland said the latest version of the agreement calls for the developers to provide $75,000 for a gate on Escuela Drive, an escalation of parks fees payment, and a relocation of parks sites that places the community center and aquatic complex on property behind the RMA Building where a high density development had been proposed.

But for some of the nine residents who spoke at the meeting, the proposed benefits could not compensate for the fact that most of the new homes will be production houses instead of custom homes.

"I honestly believe that if you were to take the pulse of this community, that's what's really hanging this thing up," said Ted Hart.

Others suggested the MBA wouldn't be necessary if a custom-home development was planned and the properties could then be annexed to the RMA.

Several times Copeland asked the group for comments specifically related to the MBA.

Wilbur Haines was one of the few who commented on provisions of the agreement.

For Haines, the payment of RMA dues by the residents of the new development raised serious questions. The residents would be members of their own master association and would owe dues there too. Eventually they would protest paying dues to RMA and the RMA would have no way to collect those dues from the individual Rancho North landowners, Haines said.

CSD questions delay approval of agreement

The Rancho Murieta Association board said at Tuesday's meeting that a letter from the Community Services District was among the reasons to delay voting on the Mutual Benefit Agreement.

The six-page letter, from CSD counsel Richard E. Brandt to lawyers negotiating the deal, says the CSD was given little time to review the agreement and that the copy it received was missing exhibits. The letter offers 18 comments about the agreement's structure or language and says the CSD may need to return with additional comments.

Among the letter's points, the CSD asks for reimbursement language in the agreement to cover North Gate construction. The CSD plans to build a new North Gate and be repaid by the developers. On a new Escuela gate, the letter says the agreement doesn't address the potential expense of a staffed gate, and the CSD wants the time frame for reimbursement for the gate extended from three to five years. The agreement involves long-fought land transfers involving the CSD, and the letter asks for protections surrounding the transfers.


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"We're sitting ducks for litigation. … We're going to be litigating for eternity with this new neighbor with which we have a complex, unworkable business relationship," Haines said.

Director Elliot Sevier said the board would look into the issue.

The meeting lasted three and a half hours. The original plan to limit speakers to three minutes was abandoned early on, after Director June Koefelda said, "This director is willing to sit here tonight for as long as it takes."

Sitting at the front of the meeting room, in addition to the RMA board, were developers Cassano and Kamilos and the RMA's lawyers. Their presence prompted the evening's first controversy.

"I'm not comfortable in a dialogue at this meeting with representatives from what I consider to be the other side," said Hart, referring to the developers. Another resident also objected to the presence of the lawyers.

RMA General Manager Greg Vorster said the developers were invited to help answer questions. "It was just a source of additional information," he explained.

In the end, both the lawyers and the developers stayed.

The RMA lawyers, Deon R. Stein of Stein Baydaline and Curtis C. Sproul of Weintraub Genshlea Chediak Sproul, addressed conflict of interest issues. Sproul has been directly involved in the negotiations; Stein reviewed the MBA.

Sproul said he worked with Cassano at Gold River, serving as the lawyer for the homeowners association there. He's also producing the CC&Rs for the proposed Murieta development. His relationship with Rancho Murieta goes back to 1985. "I've been in, as I say, every war out here," he said.

The Pension Trust Fund of the Operating Engineers, the property owner, has its own legal counsel. Murieta Holdings is acting as an agent for the PTF.

Sproul said the PTF "has an army of lawyers, and they're not very nice people." He said all the negotiated points in the MBA are subjected to review by PTF legal representation. Stein described the PTF legal representatives as "Doberman pinscher lawyers."

Late in the meeting, Terry Hanson, who opposes the proposed development, came forward to tell the board, "This document you're about to sign is fatally flawed." When Hanson said he had documentation showing the developers did not have the right to proceed with developing the property, the board and lawyers invited him to produce the documents and let them work with the information.

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