Frequently Asked Questions
1. WHAT IS THE LANDSLIDE REPAIR FOUNDATION, INC.?
The Landslide Repair Foundation, Inc. is a tax exempt no-profit corporation incorporated under both federal and state laws. It is designed to hold the settlement proceeds and title to the two parcels of property arising out of Alexander v. State of California, Santa Barbara County Superior Court Case No. 01185586 (the “Lawsuit”), amounting to approximately $50,000,000, which are earmarked for landslide repair in the Sycamore Canyon area.
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2. WHO ARE THE FOUNDATIONS’S BOARD OF DIRECTORS?
The President is Ron Stronach.
The Treasurer is Bob Bason.
The Secretary is Tom Sneddon.
Harry Linden is Director.
Scott Rowland is Director.
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3. ARE THE BOARD OF DIRECTORS PAID A SALARY OR DO THEY RECEIVE ANY OTHER BENEFITS?
No as to both. The Board serves without any form of salary or benefits. The only form of compensation is for documented out of pocket expenses directly attributable to the Foundation’s purpose.
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4. DOES THE LANDSLIDE REPAIR FOUNDATION HAVE CORPORATE COUNSEL?
Yes! One of the first acts of the Board was to retain David Casselman as corporate counsel. Mr.Casselman was the Plaintiffs’ attorney in the Alexander lawsuit. He is very familiar with the terms of the settlement agreement, as well as the geotechnical causes of the landslide.
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5. WHAT HAPPENED TO THE SETTLEMENT MONEY AND DOES THE BOARD HAVE AN INVESTMENT STRATEGY?
At the time of the settlement Attorney Casselman circulates a request for proposal and based upon the response the investment firm of UBS Financial Services was selected. The money has been invested by UBS in a series of low to non-risk U.S. Federal Agency Notes and money market accounts. All investments made on behalf of LRF are “AAA” rated. The bonds were projected to mature at different times to coincide with monetary needs connected with the construction process. Any bond that matures and is not projected to be needed is simply rolled over to a new maturity date that is consistent with the construction schedule. The Board makes the decision on the liquidation of any particular bond, but UBS Financial manages the funds. Systems are in place so that no officer of the corporation has individual access to funds and oversight is in place at every step of disbursement.
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6. DOES THE LANDSLIDE REPAIR FOUNDATION HAVE EMPLOYEES?
No. The Board of Directors as elected to retain professionals, each very experience and reputable in their particular field, to accomplish the Foundation’s mission and goals. The Board of Directors in turn relies on their advice and collective experience.
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7. IF THE REPAIR PROJECT IS COMPLETED FOR LESS THAN $50 MILLION DOLLARS, WHAT HAPPENS TO THE REMAINDER OF THE MONEY AND THE TWO PARCELS OF LAND?
The settlement agreement provides that 50% of any remaining funds revert to CALTRANS. The two parcels of land have been permanently deeded to the Foundation. At this point the Board has made no decisions as to either the money or the parcels. There have been discussions about restoring the hillside’s vegetation and creating an open space, park like environment on the two parcels and creating a reserve fund to finance the Foundation’s on-going maintenance responsibilities. It needs to be emphasized that no decisions have been made nor will any be made until the project is near completion.
As we approach the actual construction phases of the project, it appears less likely that there will be a substantial sum of money left. However, the Board is taking every opportunity to economize so long as it does not compromise the success of the construction project.
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8. I HEARD THAT THERE IS AN ADDITIONAL $3 MILLION DOLLARS TO COVER ANY CATASTROPIC EVENT?
Yes, such a fund does exist, but the Board is not involved in the management or the decisions to distribute those funds. Pursuant to the settlement agreement those funds are being held by Attorney Casselman. In the event that any such catastrophic event may occur, he and CALTRANS will decide if any distributions should be made and under what circumstances.
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9. WILL CANON VIEW ROAD BE CLOSED DURING THE CONSTRUCTION PROCESS?
Originally, there was talk of the need to close Canon View Rd for an extensive period of time. Due to the impact on individuals who need to use that road on a daily basis that plan has changed. It has been determined that a temporary road will be built across the Halstead and Sneddon properties. Both homeowners have agreed without any compensation.
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10. WHEN THE CONSTRUCTION PROJECT IS COMPLETED WILL SYCAMORE CANYON ROAD BE OPENED?
This is a CALTRANS decision. The construction project has no direct relationship to the road’s opening, but should indirectly help make that a possibility. The Foundation has no authority or role in making that decision.
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11. HOW WILL THE HEAVY EQUIPMENT AND PROJECT MATERIAL REQUIREMENTS AFFECT THE HOMEOWNERS’ ASSOCIATION’S ROADS?
There will be definite impacts. It is anticipated that North Sierra Vista and Sycamore Vista Road will be the primary roads used. The Landslide Repair Foundation has agreed to provide on-going maintenance to the roads as needed during the construction process, but also to fix them at the end of the project.
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12. HAS THE LRF THOUGHT ABOUT DUST CONTROL DURING THE CONSTRUCTION PROJECT?
Yes! The Board recognizes this as a concern. Therefore, it has required that the contractors include in their bids measures for dust control so as to minimize the impact on the neighborhood and the region. Realistically, we can expect that there may be some inconvenience.
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13. ARE THE HOMEOWNERS INDIDUALLY OR THE HOMEOWNERS ASSOCIATION EXPOSED TO ANY LIABILITY IN THE EVENT OF AN ACCIDENT OR INJURY DURING THE CONSTRUCTION PROJECT?
No! The Foundation has required that every vendor working of the project include the Association as a party covered in their insurance rider. In addition, the RFP requires multi-million dollar coverage by the company selected to do the individual phases of the project.
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14. I HAVE HEARD THAT THE CONSTRUCTION PROJECT MAY INCLUDE A SEWER SYSTEM TO REPLACE THOSE CURRENTLY ON SPETIC SYSTEMS?
Yes! A feasibility study and preliminary sewer system design that hooks into Santa Barbara City’s system is underway. This project is in line with the on-going settlement goal of stabilizing the hillside by the elimination of the current septic systems. At the present time, the system design is focusing on those premises whose septic systems could affect the area repaired. Depending on funds and costs the goal is to get as many area homes on the system as possible.
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15. HAS THE LANDSLIDE REPAIR FOUNDATION HIRED ANY EXPERTS TO ASSIST THEM IN DESIGNING AND MANAGING THE HILLSIDE REPAIR PROJECT?
Yes! Cotton, Shires and Associates have been retained to do the geotechnical and design work. They were the experts hired by David Casselman in the Alexander lawsuit and are therefore very familiar with the forces that created the hill’s slide and are experts in slide repair design. Their offices are located in Los Gatos, but they do work all over this state and in other states. CSA has in turn hired two well known experts in this field to pier review and consult of the project’s design.
Attorney Michael Pfau’s specialty is incorporating tax exempt, non-profits. He was retained by the Foundation and prepared the necessary By-Laws and Articles of Incorporation to create the Landslide Repair Foundation, Inc.
Suzanne Elledge Planning and Permitting Services has been hired to do the permit processing and coordination. Portions of the repair project are in the city and other parts in the county so the project will require multiple reviews. She will also be responsible to ensure that the documentation and forms are submitted properly.
Schipper Construction has been hired as the Program Manager for the construction project. They will provide on site monitoring of the project and handle all the paper work for the project as the representative of LRF.
Damitz,Brooks, Nightingale, Turner and Morrisset will provide audit services. As a non-profit the Foundation is required to file annual audits with both the federal and state authorities.
UBS Financial Services was selected as the money manager of the project’s funds as described in Question # 5 above.
Image Net, a Carpinteria firm will create and maintain LRF’s website.
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16. WHO MAY I CONTACT IF I HAVE A QUESTION OR CONCERN THAT NEEDS TO BE RESOLVED?
President Ron Stronach has been appointed as the point person to handle inquires or concerns. He may be contacted at the address or phone number posted on this website. Any issue or concern that can not be easily answered will be considered by the Board of Directors and a timely response provided. If a response can not be made within 24 hours recognition of the receipt of the question or concern will be provided within 24 hours.
Landslide Repair Foundation has directed its experts to refer public inquiries to the Board of Directors for a response of action.
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