Update from the Fiesta Gardens Homes Association
Underground Sewage Tank (UST) Task Force 
October 30, 2016

As you may know, Fiesta Meadows Park is being considered as a location for a giant underground sewage tank.

Did you know?  This project would significantly impact your quality of life, health, safety, and home values and take 4 years to construct.  We need to influence the City NOW to take our neighborhood off the list of proposed sites. The City Council will receive a recommendation on December 14, 2016 and make a decision on January 17, 2017.

Our FGHA Board has assembled a UST Task Force to organize our efforts to take our neighborhood off the proposed sites list. The Task Force has been busy behind the scenes researching the potential impacts, reaching out to the neighborhood, circulating a petition, securing letters of support, communicating with key city people, attending city meetings, making presentations to the City Council and Public Works Commission, and strategizing how to best present our case.

The Task Force has assembled a cross-section of Fiesta Gardens residents to make a scheduled, targeted presentation on Monday, November 7, 2016 at the next City Council meeting. There will likely be time at the end of the meeting for public comments, though city staff have advised us that having extended and repetitive comments would likely be more off-putting to the City Council than beneficial.

What can you do?  

  1. Write to the Public Works Commission and City Council NOW (see green button below "Letter to City Council Members").  Please let your Council Members know that you do not want an underground sewage overflow tank in your neighborhood! 
  2. Attend a City meeting (wear green to represent Fiesta Gardens!)  San Mateo City Hall, 330 W 20th Avenue, San Mateo
    • Monday, Nov. 7, 2016 @ 7:00pm - City Council Meeting to support our presenters (additional public comment time likely at the end)
    • Thursday, Dec. 14, 2016 @ 7:30pm - Public Works Commission meeting - share your statement against the proposal
  3. Contact John Quaresma, Fiesta Gardens resident and UST Task Force member at john.f.quaresma@gmail.com, and provide a brief testimonial, with pictures if possible,  explaining the effects this sewage tank installation would have on you. Click here to learn more.   

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Contact City Council!  

Please let your Council Members know that you do not want an underground sewage overflow tank in your neighborhood!  


Please click on green button below for a template letter we have provided for you to edit, sign, print and mail/email to our Council Members:





Our San Mateo City Council

Mayor Joe Goethals: jgoethals@cityofsanmateo.org 

Deputy Mayor David Lim: dlim@cityofsanmateo.org

Council Member Rick Bonilla:  rbonilla@cityofsanmateo.org  

Council Member Maureen Freschet: mfreschet@cityofsanmateo.org

Council Member Diane Papan:  dpapan@cityofsanmateo.org 


Did you know that Fiesta Meadows Park is one of the 5 sites being considered for an underground storage facility for sewer overflow in San Mateo? This would mean 4 years of work with large trucks going in and out of our neighborhood and work happening in the neighborhood - and that's just the set up! The purpose of this project is for the City of San Mateo to address wastewater (sanitary sewer) overflows that occur during heavy rains. The City’s Public Works Department is considering potential locations for wastewater storage (in the form of underground basins or tunnels) that, when constructed, will help eliminate these overflows, protect the health of the Bay and public, and ensure compliance with permit requirements. Join us at a community meeting held by the City of San Mateo Public Works Department to provide your input on potential storage options and locations. 

Please come out to 2 upcoming Community Meetings October 4 and 6, 2016, 6:30pm to 8:30pm at the San Mateo City Hall Council Chambers, 330 W 20th Avenue, San Mateo, CA 94403. We need to make our voices heard to prevent this football field-sized sewage tank from being put into our neighborhood! At a recent meeting, there were 100 Bay Meadows residents there to make sure it is not placed in their area. We need to make sure FG is also represented. Visit the website to learn more: Clean Water Program, cleanwaterprogramsanmateo.org.

SIGN OUR PETITION - WE SAY NO TANKS!

Sign our petition requesting San Mateo City Council to remove Fiesta Meadows Park from consideration as a site for an underground sewage overflow storage tank.  


For more information about latest events in regards to the Underground Sewage Tank and our efforts please contact us at WeSayNoTanks@gmail.com.


Next HOA Meeting: November 2 at 7:00

​Updated Agenda Items: Wednesday, Nov. 8 HOA Board Meeting

In addition to the agenda items currently in the November Bee, we will discuss the following:

  • Open board positions and non-board positions
  • Discuss and vote on the board endorsement of the flood measure on the November ballot: “Flood Free San Mateo”. This is the flood and storm protection initiative.

Fiesta Gardens Homes Association

ANNOUNCEMENTS

Recording of August 7th HOA Meeting

Passcode: .dE#%6TH

Learn more about the

Clean Water Program

October 4th and October 6th

6:30 pm

San Mateo City Hall​

Wear green to represent Fiesta Gardens!

SPECIAL ANNOUCEMENT

ZOOM INFORMATIONAL MEETING FOR THE CABANA REBUILD

WHEN: Sunday, December 13th at 4:00


​Find out about the plans and get your questions answered.
We held two SPAR meetings required by the City about six years ago and the City is requiring us to have another meeting as too much time has passed.  We know there are a lot of new faces in the neighborhood who want to see the plans.  


​
​

Special Assessment Results - It's a Yes!​

​Aug 2, 2019


​Anybody up for getting a new Cabana built? I know for a fact that at least 236 of you are.
The final vote (371 valid ballots received) was as follows:

• YES - 236 63.6%
• NO -  131 35.3%
• ABST - 9 1.1%

We needed 246 ballots returned to have a quorum and once we got that, we needed 50%+1 of
the returned ballots to pass. In another words, we needed a “majority of a majority.” We got
63.6%! I know some of you are asking yourselves, “I thought we needed 50%+1 (246) of the
membership to pass”.
Well, that’s what we originally thought, too. However, given some of the controversy and
comments we were hearing from some residents, we wanted to confirm and double check that
we were doing everything correctly and by the word of law. We found that the law had changed.
Here’s what we found on the Davis-Stirling website (link to the law provided below):
​
Super-Majority Requirements Invalid. Governing documents that require a super-majority for assessment approval are invalid, such as: approval by a majority of the membership or approval by a majority of a quorum where the quorum is 2/3 of the membership. Such provisions are superseded by the Davis-Stirling Act.
​
Approval Defined. For purposes of a special assessment, the approval requirement is set by
statute rather than the governing documents. Regardless of anything to the contrary in an
association's governing documents, special assessments are approved by a majority of a quorum
of the membership. The Davis-Stirling Act defines a quorum to mean more than 50% of the
owners of an association. (Civ. Code §5605(c).) It then defines a majority of a quorum to mean
the affirmative vote of a majority of the votes cast, which votes also constitute a majority of the
required quorum. (Civ. Code §4070.)
For Example: In an association of 100 members, 51 ballots must be returned to constitute a
quorum. Of those, at least 26 must vote for the special assessment. If 60 ballots are cast, at least 31 must vote in the affirmative. And so on.

Secret Ballot. A membership voting on a special assessment must be done by secret ballot using election rules duly adopted by the association. Membership approval is at a special meeting called for that purpose or entirely through a mail-in ballot. In our example, in an association of 489 members, 246 ballots must be returned to constitute a quorum. If 371 ballots are cast, at least 186 must vote in the affirmative. We received 236 Yes votes so the Special Assessment is approved.

If you desire, here’s the link to the D/S website and this information: https://www.davis-
stirling.com/HOME/Membership-Approval. A letter explaining all of this from our attorney will be in the next Bee and on our website.


CONGRATULATIONS FIESTA GARDENS! WE’RE GETTING A NEW CABANA!

Once again, THANK YOU to everyone who VOTED and our volunteers who helped make this
happen from the beginning. More info will be coming soon regarding payments and construction.


INFORMATION ON THE EMERGENCY ASSESSMENT IN AUGUST 2024

Background:

Fiesta Gardens Homes Association (the “Association” or “HOA”) was incorporated in October 1955. The properties within the HOA were developed by Culligan and includes multi-residential units along Delaware St, all the apartments along 19th Ave, and many of the single-family homes and duplexes in Fiesta Gardens. It includes 489 properties, of which, there are 574 units.

Around 2017, a handful of FGHA members that were past due on their Annual Dues encouraged other members to stop paying their dues. These members stopped paying these dues, implying that their properties are not part of the HOA. These properties included all of the multi-residential units along Delaware, all the apartments along 19th Ave, and many of the single-family homes and duplexes in Fiesta Gardens #2 which is every property South of the creek.

Impact: 
Because these members stopped paying their dues, the Association was out of annual dues of $100,000+. Members who were current on their annual dues had to pay higher dues.

Board Actions / Decisions: 

  • A collection agency was hired to seek out and collect these delinquent funds, and most of it was recovered. 
  • A suit was filed against a member who failed to pay their dues for the past 10+ years. Despite paying their dues in the past, they stopped paying and claimed that their properties are not part of the HOA.


Why did the Board file suit against a member who was delinquent on their annual dues?

  • As stated above, the member was delinquent on their annual dues for 10+ years. 
  • They encouraged other members to stop paying their dues, and the Association was out of annual dues of $100,000+. 
  • By allowing members to be delinquent on their Annual Dues, the members who were current on their Annual Dues will have to pay higher dues.


Why did the Board vote on an Emergency Assessment?

  • Based on the advice of the HOA’s Attorney, FGHA budgeted $30,000 in legal fees for 2023. The legal fees incurred as of July 2024 are approximately $92,000. 
  • The Attorney explained that the legal fees incurred in 2024 were not reasonably foreseen when the annual budget was developed in December 2023 for the following reasons:
  • Many of the relevant documents are about 70 years old. Many are missing from the Association’s records and recorder’s office; 
  • The Attorney was unable to obtain any meaningful clarifications about whether the property in question is intended to be part of the Association, and how Culligan, the original developer of Fiesta Gardens, seemingly annexed an entire subdivision into the Association, but yet some properties within that subdivision are not (and were never) part of the Association; [Stated differently, there are official records that show that some properties developed in 1955 are clearly within the HOA, while other properties developed in 1956 had missing records to show that it is clearly within the HOA]
  • No prior case reported in California that dealt with this exact issue;
  • The Attorney performed a very significant amount of research, which touched upon equitable servitudes, covenants running with the land and other complicated legal constructs.
  • The HOA must pay the legal fees. If the operating funds are used to pay the legal fees, the HOA would not have sufficient funds to pay for landscaping, pool maintenance, lifeguard costs, etc. By using the Emergency Assessment, the HOA can act quickly to raise the funds to pay the legal fees and the general operating fees so members can enjoy the amenities during the summer.


What did the Board consider as alternatives? 

  • Dropping the lawsuit: The Board considered dropping the lawsuit, but in doing so, there is a risk that certain members will claim that their properties are not part of the HOA, or that their kids have grown up and they no longer use the amenities provided by the HOA. As a result, members will need to decide to higher annual dues or to give up the HOA amenities. 
  • Obtaining a loan: Given that the HOA doesn't know when the lawsuit will be resolved, how much / when we can recover the money, we may need to raise funds when we have to repay the loan and loan interest. The interest rates in the current environment are higher than the past few years. Obtaining a loan also requires a vote, which would not allow the HOA to act quickly (see next bullet point). When members were asked how they would like to pay for the cabana, they voted against obtaining a loan. 
  • Using a Special Assessment: The Special Assessment requires the HOA members to vote. Using a Special Assessment takes time, and the HOA would need to stop providing the amenities because the HOA cannot afford them (e.g. water bills, pool maintenance, lifeguard, etc.). The HOA could incur more costs by lapsing on normal maintenance (e.g. grass dying, pool water out of balance, etc.) By using the Emergency Assessment, the HOA can raise the funds to pay the legal fees and the general operating fees so members can enjoy the amenities during the summer.
  • Requesting to pay the Attorney fees in installments/later: The HOA asked if the Attorney would be willing to accept installment payments or wait until the final outcome. The Attorney does not have an official payment plan, but they are willing to wait for the funds from the Emergency Assessment. The Attorney is not willing to wait longer or until the final outcome. The Attorney does not accept contingent payments. That is, the HOA has to pay legal fees regardless of whether the HOA wins. 


Can we recover any of the legal fees? 

  • If the HOA wins the suit, the HOA will be entitled to recovery of its “reasonable” attorneys’ fees, collection and other costs incurred. 
  • “Reasonable” is left to the discretion of the judge and almost never means “100%. 
  • Any fees recovered from the lawsuit will be applied to the member’s account for your Annual Dues on a pro rata basis.(i.e. If we recover 60% of the legal fees, 60% of your paid amount will be applied to your Annual Due). 


When will we know the outcome of the case? 

  • There was a Court date scheduled for August 6, 2024, but that meeting has been delayed for reasons outside of our control. 
  • The HOA’s Attorney has advised that the information about the case cannot be shared given that it is still pending. 
  • The Board will share information once the Court judgment is formally submitted.