First the good. We had a near record turnout on Tuesday night. There were about 80 people who attended in person and another 54 who tried to attend by Zoom, 134 total. Unfortunately, the Zoom connection failed, limiting the meeting to those on hand. More about that later.
Another positive was the Introduction of Action Properties, our newly appointed community managers. They introduced their Company and some of their preliminary plans. They seemed competent and professional. Their approach seems to be tech intensive and light on hands on management. They will be starting December 1 with only one on-site manager one day a week while they recruit a full-time professional. They rolled out their snaphoa app for their portal and have sent out signup instructions to the owners. We’re clearly in the honeymoon phase. We’ll see how it goes.
Now on to the bad and the ugly. Stephanie started the meeting with the rules of decorum the Board intended to follow. From there she lost control entirely and the meeting often became chaotic. Viewing from afar we got the impression that Director Steve was running the show. That said, what follows is the meat of the meeting:
- From the beginning the offered Zoom connection failed. Zoom attendees couldn’t hear and finally around 7 pm were kicked out entirely. Davis Stirling rules require that since Zoom was an offered option, the meeting be paused for a best effort attempt to fix the problem. That failed. Therefore, the meeting must be stopped and rescheduled. Steven and Stephanie were informed of the rules and chose to proceed anyway, claiming Zoom was optional. A formal protest is being filed.
- Steven, as Treasurer, then attempted to explain the new budget. There were numerous questions from the floor asking him to respond to why Lake dues (where he and Stephanie live) were being reduced by $57.86 while 377 homes in the general area were being raised $18.20 Also, questions were raised about the reserve study update which shifted reserves out of the Lake Community causing them to fall to a dangerously low level of under 20% of the study’s recommended values. This should trigger a special assessment of the Lake Community. Steve’s responses were evasive and never answered the questions.
- A major discrepancy was exposed when Steve insisted the final budget was delivered to the board in August. Director Harris said they did not receive it until the night before the Board meeting to approve it, a breach of HOA rules. Per HOA rules a minimum of 4 days is required. In addition, Steve, when asked if anyone but him reviewed the budget he prepared said that both the FirstService Controller and our lawyer had. There is no evidence that this is true. FirstService has been formally asked to verify this in the full budget package to be mailed to us shortly.
- Again, Steven raised the charge that the recall election has caused significant delays and unnecessary costs, moving the voting out to February. None of this is true. Both the annual and recall elections could have been held at this meeting. Extending the date to the maximum allowed was solely at the Board’s discretion. See our November 16 post for details.
- Among the committee reports, the only highly controversial one was the Social Committee. Due to potential conflicts of interest, the committee voted to eliminate event sponsorships (a bad move in our estimation since they can significantly reduce costs). The only clear conflict would be if a sponsor held a management position with the HOA. That would be Stephanie Bernal. The committee also objected to Steve, the Treasurer, arbitrarily reducing their budget from $2,800 to $600 without full board review and approval. Another issue involved the revision of the committee charter by the board. The committee chair and one member present stated they were never consulted concerning the change. Steve and Stephanie insisted they had. We wonder who is correct?
- As a result of the Zoom fiasco and other interruptions, the owner forum was limited to about 10 minutes when President Stephanie abruptly adjourned the meeting.
In summary, here are some outstanding issues yet to be resolved:
- Will the Board reconvene the open meeting with working Zoom intact as required by law?
- Will FirstService fulfill their fiduciary duty and explain whether or not the final budget was reviewed by their Controller and HOA counsel?
- Will the major change in reserves allocation made single handedly by the Treasurer and ensuing change in dues structure be allowed to stand?
- Will the proposed Social Committee charter change actually include input from committee members who are closest to the issues?
As always, comments are welcome. To see comments click the word “comments “ at the top of the post.
Excellent summary of a horrible meeting. Stephanie and Steve should resign immediately! They are an embarrassment to our community. Stephanie has hitched her wagon to the wrong horse (Steve) I’m sure her real-estate referrals from within Morgan Creek will be nonexistent in the future. I can’t wait until these two are off the Board and we can go back to normal operations. In my 12 years of living here I’ve never seen such a dysfunctional board.
1. in the CCR’s section 4 Assessments section 4.02 Regular assessments paragraph (ii) Cost Center Component subparagraph (A)(3) it states that 30% of the total amount of direct lake cost will be allocated to lots designated North Morgan Creek Lots. Does anyone know who is the “North Morgan Creek lots”
2. In subparagraph (A)(B) Golf Villa Assessment it states that all direct cost are allocated in equal shares among the owners of units within the Golf Villas. In the 2026 a signficant portion of the direct cost in the Golf Villas is allocated to the General population of units(which includes Pinehurst). Does anyone know why this is occuring. It adds above $12 a month to everyone HOA dues.
Hi Anthony,
The definition of “North Morgan Creek” lots can be found in our Suplemental Declaration, Section 1.03(B)2. which says “With respect to the Property, the establishment and allocation of the Lake Community Cost Center described in Section 4.02( d)(ii) of the Master Declaration is hereby
modified by this Supplemental Declaration. The “North Morgan Creek Lots” designation in Section 4.02( d)(ii)(A)(3) of the Master Declaration is hereby modified to apply to all Lots
and Units within the Properties, including Lots located South of Morgan Creek, which are not also “Lake Lots” or “Lake Community Lots” as described in Section 4.02( d)(ii)(A)(2)
and (3) of the Master Declaration.”
Also, the assessment allocation was changed as follows: “The “North Morgan Creek Lots” as modified by this paragraph, shall collectively be obligated for twenty-five percent (25%) of the Lake Community Cost Center expenses. The remaining seventy-five percent (75%) of the Lake Community Cost Center expenses shall be allocated among the “Lake Community Lots” and the “Lake Lots” as described in Section 4.02( d)(ii)(A)(l) and (2) of the Master Declaration, in the amount of thirty-five percent (35%) and forty percent (40%), respectively.”
Hope that helps. 🙂
I haven’t received any communication yet from Action Properties….how can I reach them ?
The number Action Properties gave out at the meeting was 800-400-2284. Good luck. Let us know what happens.
I’m still in shock that when the Zoom link failed and nearly 50 people were kicked off the call they didn’t postpone the meeting! It’s such a dereliction of duty on the President’s part. Here is a specific law that govern our meetings. I’m shocked that Stephanie openly violated these laws even after she was informed. What does that tell you about her leadership, or lack of?
“If a technology like Zoom fails during a public meeting, the board must take a recess and attempt in good faith to restore public access; the meeting may be postponed if the disruption cannot be resolved in a timely manner, generally at least an hour. The meeting cannot take any further action until public access is restored.
Actions During a Technical Disruption
Under recent amendments to the Brown Act, particularly SB 707 (operative July 1, 2026, but the principles on disruption are currently relevant through other provisions like AB 2449):
• Recess the meeting: The public body must immediately recess the open session when a disruption prevents the public from attending or observing via the remote platform.
• Attempt to restore service: Good-faith efforts must be made to restore the connection. The session can remain in recess for at least an hour or until the issue is fixed but the meaning cannot proceed.
• Do not take action: No further action can be taken on agenda items until public access is restored.
• Adopt a policy: Agencies are required to have a written policy for addressing service disruptions.”
The bocce ball court and putting greens in between the Villas is available for all Morgan creek residents. The maintenance and repair is shared by all Morgan creek residents.
HOA board members owe a fiduciary duty to the association and all of its members under virtually every state law, especially here in CA for a non profit corporation or common interest community statutes. Selectively giving the lake community a lower assessment because Stephanie and Steven live on the lake while raising the assessment for the other 377 homeowners could be considered a textbook example of self dealing and violation of the duty of loyalty. This could leave them open to be sued for damages and this can also be considered theft by deception, fraud or misappropriation of funds since the HOA assessments are trust funds belonging to the association of Morgan Creek, not the board members. Why is it that the lake communities monthly HOA fees will go down by $57.86/month when the majority of the community, the other 377 homeowners will see a raise of $18.20/month? Please explain?
Board members have a fudiciary responsibility to follow state law and HOA guidelines. It’s really that simple. If they don’t like the HOA guidelines, they should work within the guidelines to change the rules with input from the community… as required.
Their disregard for the rules and basic civility is totally nuts and embarrassment!
After a six hour surgery (no, i’m not kidding) I attempted to get into the Zoom call to listen to the BAD AND THE UGLY… to no avail. Total incompetence…
Steven and Stephanie should RESIGN NOW so our community can regroup in a way that is in the interest of ALL RESIDENTS…according to the current HOA guidelines.