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Other news from this meeting

New broadband pricing plan approved

New development plan for Escuela school site

Contracts and projects

Presentations

Annual meeting completed


 

RMA mulls whether to rebroadcast 1997 board meeting on development document

Related story: Builders close escrow on Murieta Hills development land, triggering $1.4 million for new North Gate (December 28, 2004)

Published Tuesday, December 28, 2004

A 45-minute discussion about Director Dick Cox's request to rebroadcast a tape of a 1997 Rancho Murieta Association board meeting renewed board conflicts about the Mutual Benefit Agreement at December's meeting.

The board postponed a decision on the tape until the directors can view it and consult with legal counsel.

Among other actions taken at Dec. 21's five-hour meeting, the RMA board approved an aggressive pricing plan for its broadband operation and agreed to establish an ad hoc committee for a new North Gate. (See related story.)

The tape deals with the Letter Agreement, the precursor to the MBA. The agreement had been signed the month before the taped meeting. The meeting reportedly includes about an hour of comments by board members and several residents on the terms of the document, which development opponents say was kept secret from the community.

The videotape was recorded by a resident from a 1997 broadcast of the meeting.

The RMA does not archive tapes of its meetings, in keeping with the advice of legal counsel, said General Manager Greg Vorster. The Community Services District has a similar policy, keeping audio recordings of its board meetings for only 30 days.

At Tuesday's meeting, Vorster pointed out that the Letter Agreement was not a settlement of the lawsuit between the RMA and the Pension Trust Fund of the Operating Engineers, although it is often characterized that way.

"This was simply a letter agreement saying these are the facts that both sides are agreeing to. Now you can take that letter agreement and develop a formal, final agreement. That never happened until the MBA," explained Vorster.

Two years ago, when the text of the agreement was released to the membership, Vorster said lawyers for the RMA and the PTF had been meeting before a judge twice a year since the letter was signed to explain that a settlement had not yet been reached.

At that time, he characterized the Letter Agreement as the "base document" for the MBA. The MBA expanded on conditions outlined in the Letter Agreement to become the settlement of the lawsuit. (See 2002 coverage here.)

The negotiating points of the MBA have been available to the public since November 2000, when they were presented at the annual membership meeting. A draft of the MBA was released in October 2002. A year later, the document was signed.

In addition to the transfer of parks to the RMA and developer participation in the Parks Agreement, the MBA caps the number of homes that can be built in Murieta North, secures $1.4 million from the PTF for a new front gate, establishes road-impact fees, provides $75,000 for an Escuela gate, and mandates dues contributions to RMA from homeowners in the new areas, who would belong to a separate master homeowners association.

According to Cox, who, like the other directors, hadn't seen the tape, former RMA director John Merchant appears on it explaining "why it was in the best interests of Rancho Murieta to sign this Letter Agreement … and there is some objection by four members who come to the podium to speak." Cox said one of the dissenting speakers is Ted Hart, now a member of the Rancho Murieta Development Concerned Citizens Committee, a group that opposes current development plans. Merchant is now the president of the CSD.

Cox said he thought the tape was "pertinent piece of information" for the talks that will be conducted among the county, developers, development opponents and community representatives early next year. He said it represents "the history of how we got where we are today."

Director Mike Martel said, "The members are really upset about the signing of the MBA." He termed the Letter Agreement "the cause of the cancer that was done secretly. … I would like to see this tape aired. It may give me answers that I am not aware of …"

Director Pamela Haines read from minutes of the 1997 meeting which say Merchant explained and summarized the terms of the agreement.

President Paul Gumbinger said the issues the tape could raise made it "almost like a witch-hunt," a characterization that was taken up later in the discussion by Director Elliot Sevier, who called the tape "an historical document" that didn't represent the whole picture or allow for what's been presented at "a whole raft of subsequent, follow-up meetings this board has had."

"…This is a form of a witch-hunt," Sevier said. "I think it's associated with going after John Merchant. I think it's associated with trying to vilify him but, at the same time, sanctify Ted Hart and others." Sevier added that Hart is "already on my saint list. He's a gentleman and we can agree to disagree and it's fine."

"I happen to think there are probably some witches out here that need to be hunted," Cox responded. "The previous members on the board -- if they've got nothing to hide, they shouldn't be worried about this."

Gumbinger, Sevier, Haines and Cooper said they were concerned about the legalities of showing the tape.

To see past development coverage, click here for a pop-up window with a four-year archive of stories, photos and maps.

New broadband pricing plan approved

The directors approved a new pricing plan for RMA broadband that includes a special, introductory rate of $19.99 for three months for new subscribers signing up for the basic service between now and Feb. 28.

Starting March 1, new rates for basic service will take effect, lowering the rates for current subscribers by $10 a month if they're now paying $39.99 or $49.99 a month. Business users, a small portion of the subscriber base, will see their rates increase, although they will still be "cheap rates," said Director Elliot Sevier, head of the Communications Committee.

He said the new rates are designed to compete with SBC's $26.95 bundled basic rate for DSL and address the leveling off of RMA broadband subscriber numbers at about 450.

Next year's budget projections will not be met unless new customers are added, he explained.

Since the service was offered in May 2002, broadband has paid back its start-up costs, become self-supporting, and provided the association with income that offsets dues. Under new contracts with service providers, some of the operating costs have recently gone down.

The introductory offer and the reduced rates are designed to attract dial-up users, DSL customers, and newcomers to the community, Sevier said when he presented the plan to the Finance Committee a few days before the board meeting.

At the Finance Committee meeting, Communications Committee member Mark Miller, who proposed the approach, described it as a "win-win situation" for new and existing subscribers. He said he was confident that if people tried the system, they would appreciate its speed and reliability and stay on as subscribers at the new rates when the trial period ended.

Both the Communications and Finance Committees voted to recommend the plan to the board.

The Communications Committee is now working on a marketing plan.

New development plan for Escuela school site

A new plan for developing the 14 acres that were to be a school site represents a complete about-face from earlier proposals, but it generated little enthusiasm and more than a little suspicion from some board members.

The new River West Investments plan reduces the number of single-family, detached houses from 64 to 39, agrees to make them custom homes instead of tract houses, proposes to abide by RMA Covenants, Conditions and Restrictions, and to annex to the association.

The homes would be subject to RMA architectural control and the developer would pay parks fees.

The plan also restores a previously dropped four-acre park site and proposes to complete the paving of Escuela to Stonehouse Road.

Initial plans called for no connection with the RMA and access from Stonehouse Road instead of Escuela Drive.

In spite of the fact that this is the sort of proposal some members of the board have been pushing for from other Murieta North developers, directors said they wanted to see larger lots and more information about the houses planned for the site.

President Paul Gumbinger said he was concerned about grading issues. Director Dick Cox remarked that he wouldn't trust anything a developer said.

River West donated the property last year to a non-profit charitable organization to receive a tax break, but is still involved in shepherding the project through the county approval process. In February, Bret Hogge, land use manager for River West, said the firm will market the property to a builder for $3 million or more, once the map is approved.

Hogge has met with Gumbinger and General Manager Greg Vorster to discuss the project and revise the plan. In order to proceed with the revised map and an application to the RMA for annexation, he requested preliminary plan approval from the RMA board so the non-profit organization could release funds for land planning and engineering.

The board declined to vote on the project and instructed Vorster to accept Hogge's offer to make a presentation of the project, scheduling it for the January board meeting.

Contracts and projects

  • The board declined to take action on a two-year contract renewal for the FoxSports channel because it hadn't been reviewed by the Finance Committee.
  • A motion to waive the fee and approve the Little League contract for the use of the ball fields was rescinded because the contract hasn't gone through the Finance Committee.
  • A two-year contract with ZCorum, the 24-hour broadband customer service and e-mail provider for the broadband system, was approved. The contract carries a lower rate than the current contract, which it replaces.
  • A resolution to allot $8,376.62 for improvements at the Riverview Park playground was approved. The playground will be enlarged and equipped with more play equipment for younger children. Summerfest has donated $20,000 for a shade cover and Kiwanis has donated $4,000 for the project.

Presentations

  • Alan Klaus received a plaque from President Paul Gumbinger in recognition of his years of service to the association as a Finance Committee member and also as a member of the Compliance Committee.
  • The Community Club of Rancho Murieta was thanked for contributing more than $6,000 over the past three years for Christmas decorations at the gates.

Annual meeting completed

New directors Donni Quinlan and Jack Cooper went from being appointed directors to elected ones during a fifteen-minute continuation of the November annual meeting. The meeting took place before Tuesday's regular board meeting.

The annual meeting was able to proceed after the required quorum of 889 votes -- 40 percent of the membership -- was reached. A total of 894 votes were cast in the uncontested election.

A resolution on excess revenue was adopted to spare the RMA the tax consequences of year-end surplus funds by carrying the revenue into next year's budget.

Committee members approved:

Architectural Review
Frank Dininger, chair
Paul Gumbinger, liaison
Bill Barnes
Robert Schindler
Chuck Hardy, alternate

Communications
Elliot Sevier, chair
Chuck Hardy
Mark Miller
Peter Telfer
Cate Merrit-Murphy

Compliance
Jack Cooper, chair
Jack Copeland
Judith Embree
Betty Warner
Jim Moore

Recreation
Donni Quinlan, chair
Caryl Abshire
Bob Kjome
Liz Swan
Doug Moore

Finance
Richard Cox, chair
Frank Pumilia
Bobbi Belton
Joe Ramage
Anthony Souza
Jon Snyder, alt.
Donna McLeod, alternate
Virginia Macko, alternate

Governing Documents
Pamela Haines, chair
Mel Standart
Grey Christie
Gytis Gavelis
Jack Tavalario, alternate

Maintenance
Mike Martel, chair
Ray Helmick
Lee Hunt
Randy Jenco
Jim Villa
Blake Carmichael
Tim Whiting
Carolyn Kuhnz



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