Almost 300 members call for recall of Directors

BY

At a meeting of the Canyon Lake Property Owners Board of Directors last Tuesday, July 21, former POA Treasurer Sean McDonald (2011-2013) presented a packet containing 286 signed petitions calling for the recall of President David Eilers, Treasurer Bruce Yarbrough and Secretary Doug Gordon.

Sean noted that the number was more than the percentage required for a recall election in Canyon Lake under the Davis-Stirling Act.

The reasons given on the petition for recalling these Board members are as follows:

1. Violated their fiduciary duties to the membership.
2. Violated our governing documents.
3. Creating new rules for members that were not previously approved by the Board or the membership.
4. Denied CLPOA membership even though the members had complied with approved CLPOA rules for CLPOA membership.
5. Orchestrated a new revision of By-laws to disenfranchise more than 1,000 property owners. The proposed By-laws significantly changes property rights or rights of members in an association without a legitimate newly created or recognized need.
6. Prohibited CLPOA members from attending POA Board meetings in violation of the Davis-Stirling Act and our current By-laws.

These points are expanded upon at www.recalldirectors.com.

Sean requested that the petition signatures be validated by the same company that counted the ballots in the CLPOA Annual Meeting and Election, HOA Elections.

The Board accepted the petitions without comment. After counting the petitions and resealing the envelope, Clerk of the Board Denise Agostini confirmed she counted 286 petitions.

As of publication deadline this week, the Association staff and Board of Directors had not publicly commented on the recall petitions.

According to www.davis-stirling.com, Sean’s personal delivery of the petitions to the Board meeting was sufficient to put the Directors on notice and start the clock running on their duty to set a date for the meeting, as long as the petition signatures are valid and meet the minimum percentage requirement for a recall election.

After the Board sets a date for the meeting, it must send notice to the membership as well as prepare and send ballots as provided for in Civil Code §5115(a).

The only business that may be conducted at the special meeting is the recall of the Directors and the election of new Directors in the event the recall is successful. The notice of meeting shall specify those matters the Board intends to present for action by the membership.

Furthermore, according to www.davis-stirling.com, if the governing documents provide for cumulative voting (as Canyon Lake’s do) removing individual Directors is more difficult than removing the entire Board. There is a complicated formula for removing individual Directors that can be read at www.davis-stirling.com.

Sean estimates the cost of the recall at $17,000 to $20,000. More about the petition can be viewed at www.recalldirectors.com.

The next meeting of the CLPOA Board of Directors is Tuesday, August 4, at 7 p.m. in the Holiday Bay Room at the Lodge.