Dispute between CLPOA and EVMWD continues

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The dispute between the Canyon Lake Property Owners Association and the Elsinore Valley Municipal Water District heated up last week as the water district board, on March 28, rejected Canyon Lake’s claim that EVMWD owes the Association more than $6 million.

The CLPOA Board of Directors refused to pay the $344,000 quarterly lease payment due March 15, then filed a lawsuit against EVMWD.

On March 18, the water district filed a notice of default and warned the CLPOA that the lease could be terminated, resulting in the loss of recreational privileges on the lake.

On March 20, the CLPOA filed a lawsuit against EVMWD challenging the potential lease termination.

On March 26, EVMWD filed a cross-complaint on the CLPOA lawsuit and rejected Canyon Lake’s claim that the district owed more than $6 million.

As of publication deadline, a meeting for all residents of Canyon Lake was planned for last night, April 2, at the Lodge, to go over what was taking place with the lawsuits. The following is the press release the CLPOA sent out last Thursday.

CLPOA Files Suit Against EVMWD

“On February 18, 2015, Canyon Lake Property Owners Association (the “Association”) sent a Notice of Claim to Elsinore Valley Municipal Water District (“EVMWD”). The Claim states that since the passage of Proposition 26, an Amendment to the California Constitution, EVMWD has been charging an illegal tax upon the Association. EVMWD to date has not responded to the claim other than to express their disappointment in newspaper articles or in draft press releases issued directly to the newspaper.

“On March 20, 2015, the Association on its own and on behalf of all owners of property within the shore zone filed a Declaratory Relief lawsuit in the Riverside Superior Court. This lawsuit asks a Court to declare the rights and responsibilities of the parties at the end of the lease.

“The current Lake Lease expires on December 31, 2022. Given the inability of the Association and EVMWD to come to a long term agreement to extend the lease, the Association seeks a ruling from the Court that tells both parties their respective rights and obligations at the end of the lease.

“Without this information, EVMWD has taken the position that without the lease, all of the improvements within the shore zone will have to be taken out. The Association disagrees.

The Association believes that because of the time that these improvements have been in place that the owners have a perpetual license that cannot be revoked by EVMWD. These licenses are based upon several factors that are all discussed in the lawsuit on file in Riverside County Superior Court.

“EVMWD has declared that the Association is in default. According to David Eilers, President of the Association, ‘This is simply not correct. The Association has overpaid under the lease and has informed EVMWD of this fact.’ The California Constitution prohibits the charges that EVMWD has levied upon the Association. Eilers says ‘The Association is seeking a refund of over $6,000,000 in overpayments since 2010.’

“If a Court determines that the Association needs to pay more than it has paid, the money is available. The money for the quarterly payments is being placed into an escrow account for this exact purpose.

“Canyon Lake residents can be rest assured that EVMWD does not have the ability to take away your boating rights or use of the shore zone. It will take an Order from a Judge to make that happen. Even if that were to happen, there are safeguards within the lease that allows the Association to undo any breach for up to 24 months.

“Eilers also said that ‘When EVMWD is ready to negotiate a fair lease payment/charge, Canyon Lake Property Owners Association is ready, willing and able to sit down to discuss that with EVMWD. Despite the filing of the claim and lawsuit, Canyon Lake would be happy to talk and work this out. If EVMWD intends to dictate terms though, such a negotiation will not be successful.’

“Members are encouraged to visit the Canyon Lake Property Owners Association website, www.canyonlakepoa.com for further information about the Lake Lease and the current dispute.”