RANCHO MURIETA, CA (MPG) - The settlement of a lawsuit and the development of a subdivision trail were key topics when the Rancho Murieta Association Board of Directors met on Aug. 20.

The board also approved several expenditures and received reports from the board committee chairs during the 45-minute session.

Lawsuit

General Manager Rod Hart began his monthly report with positive news regarding the settlement of a lawsuit against the association that was filed by Greenfield Communications in December 2021.

In its lawsuit, Greenfield alleged that the association and past General Manager Greg Vorster falsely represented the community’s cable infrastructure as well-maintained and mostly in conduit before a lease agreement was signed in 2014.  Greenfield became aware of the infrastructure’s poor condition during construction, making the installation of optic fiber more costly.

Hart reported that a written settlement had not yet been signed and said he would share additional details when available.  

“We are very pleased to have closed this issue for a minimal cost to the association,” Hart said. “The settlement will come from this year’s operating budget without affecting dues.”

Subdivision Trail

In an unusual move, Director Danny Carrillo took to the podium to address his fellow directors during public comments. Carrillo expressed his objection to a decision made at a special board meeting on Aug. 2. At that meeting, the board voted five to one to essentially approve the construction of an 8-foot dirt trail through a wooded section of the Residences East subdivision. Carrillo was the sole dissenting vote. The final decision will be made at a future Parks Committee meeting.

Under a compromise reached, developer Bob Keil will grade the trail, install a wooden bridge over a sensitive area and grant a 20-foot wide easement to the association for future trail maintenance. Keil will also deposit $50,000 into an account that the association will use to pave the trail at a later time.

Carrillo expressed frustration, stating that the board initially wanted a 12-foot paved trail but allowed the developer to persuade them into approving the 8-foot dirt trail. 

“I feel the developer has grossly taken advantage of us as an association,” Carrillo said.

Carrillo also reiterated his argument from the special meeting that any board members who had privately communicated with the developer should have recused themselves from the vote, due to a potential conflict of interest. Director John Van Doren, an attorney, had responded at the earlier meeting, clarifying that a conflict of interest would only arise if a board member stood to gain financially and that mere communication with the developer was not grounds for recusal.

In Other Business

Hart reported that the association is renegotiating a 24-year-old agreement with the Rancho Murieta Community Services District that allows district patrol officers to enforce non-safety-related, non-architectural rules for the association.

The board approved a renewal of its regular insurance policy for $150,257, which is a $4.2% increase or $6,067, and $55,000 for the workers compensation policy that has increased 20% or $9,000. The policies renew in September each year.

The board approved a $6,119 bid to clean the RMA Building roof.

The board approved spending $4,295 for an annual review of financial statements by the association’s auditing firm.

The board appointed three residents to the Nominating Committee chaired by Director Patrick O’Hern. They are Brian Correia, John Haviland and Raymond Lazada.

Director Tom Reimers, who chairs the Compliance Committee, said his group was discussing a rule that allows 24-hour passes for guests with recreational vehicles and trailers visiting residents. Due to the lack of security patrols, guests are staying longer than allowed, Reimers said.

During public comments, resident Carl Westphall asked the board for a copy of the internal dispute resolution (under Civil Code 5900) and a document explaining the Compliance Committee’s operational procedures. Adams said he would refer his request to Hart.

The board next meets at 6:30 p.m. Sept. 17.