The RSFA Board and Osuna Ranch Committee are meeting August 13 to discuss the future of our historic Osuna Ranch property and its potential sale. Osuna Ranch is the historic 25-acre property the RSF Association purchased in 2006. It includes miles of walking paths, grass pastures, equestrian boarding and the Juan Maria Osuna Adobe which is on the National Register of Historic Places.
The move to consider selling Osuna has caused some members to wonder if the Board is looking for monies to fund the proposed $10 million Ranch Clubhouse renovation/expansion and parking lot repairs, so a special assessment won’t be needed, triggering an advisory vote. The Board should disclose to us why they want to sell one of the Ranch’s most significant historical properties, and what the funds will be earmarked for.
I have enjoyed dining at the Clubhouse for years and I doubt anyone would object to updating the restaurant and repairing the parking lot. However, spending $10 million without an advisory vote of the RSFA members is inappropriate, especially since all of us will be paying for it.
I sat on an HOA board for a development in Maui. We had an unused space that the board wanted to turn into a recreation room for the homeowners. We took it to the members and they liked the idea but suggested adding some things so more homeowners could enjoy it. We were able to meld together the different ideas based on the desires of the members. The end result was better than what we had proposed and a great addition to the community. An HOA board doesn’t always know best and should involve the people they’re serving.
All Homeowners Associations (HOAs) in California are governed by the Davis-Stirling Common Interest Development Act. The law firm Adams Stirling, a leading HOA law firm in California, say HOAs should get member input on capital improvements where the cost is 5% or more of the gross annual expenditures – especially when there are major changes. “Any repair or replacement that constitutes a significant alteration in the appearance of the development or of a major amenity should involve the membership’s input in some way or another, even if the estimated cost does not exceed the 5% threshold.”
Our RSF annual gross expenses are around $18.5 million, so a $10 million capital expenditure project is about 54% of our annual budget – ten times greater than what would call for a community vote. Plus it’s not a fiscally responsible expenditure. A five-year, detailed budget needs to be in place, before any major expenditures are considered – especially now.
At the April Board meeting, the Assistant Manager talked about the future of the Osuna Ranch. One of the three options included the sale of the Osuna. Some directors, including our own Osuna Committee, told the Board that selling Osuna shouldn’t even be on the table. The Osuna was purchased by the membership with our Open Space funds, with the idea of preserving these open spaces in perpetuity.
When it comes to the potential sale of one of our most remarkable community assets or the expenditure of millions of our assessment dollars, all RSFA members should be involved.
The meeting between the Board and the Osuna Committee is at 1 p.m., Tuesday, August 13, at the Association offices on Avenida de Acacias, and is open to all members. Please come and provide your input in person, or you can email the Board at: memberinput@rsfassociation.org
Dick Clotfelter is a longtime Covenant member and has served on five HOA boards, including the RSF Association.