Judge rules against Tahoe Keys Marina, water to stay off for now

The water at the Tahoe Keys Marina will remain off for the time being after the issue was brought before El Dorado Superior Court for the third time in less than a week on Tuesday, July 18. With the water at the marina turned off, water is also turned off to the Fresh Ketch restaurant as well as apartments and businesses at the marina.

On July 11, 2017 the water was shut off to the marina by the supplier, Tahoe Keys Property Owners Association (TKPOA) Water Department. TKPOA owns the water company that supplies water to 1,529 residential customers and 4 commercial customers. The commercial customers include the Tahoe Keys Marina and Tahoe Keys Office Center according to their website.

Justin Clauser, the lawyer for the Tahoe Keys Marina, said the dispute between the two stems from a $80,000 water bill. TKPOA says they owe, the marina says they don't. Clauser said in court Tuesday that TKPOA in turn owes the marina $87,000, but the homeowner's association won't meet with them to discuss the matter.

Michael Rounds, the lawyer for TKPOA, wouldn't speak to the media after Tuesday's hearing, nor would his client, Kirk Wooldridge, General Manager of the association. Calls to TKPOA are not being returned.

On Thursday, July 13, the two parties met in Judge Suzanne Kingsbury's courtroom after the Tahoe Keys Marina asked for an emergency court order to get their water service restored. She turned down the request as the business isn't valid in the eyes of the California Secretary of State, and if a LLC (limited liability corporation) is suspended, they cannot defend themselves in court.

Clauser said on Monday that it was a paperwork issue as they changed their name from Tahoe Keys Marina and Yacht Club, LLC to Tahoe Keys Marina Management, Inc. but he had no paperwork proof to that fact to show Kingsbury and the TKPOA says their contract is with the LLC.

According to El Dorado County tax records the owner of the marina is Tahoe Keys Marina and Yacht Club, LLC, and according to City of South Lake Tahoe records, the business license name is Tahoe Keys Marina and Yacht Club, LLC. On the Secretary of State records there is an active Tahoe Keys Marina Management, Inc with the statement filed on January 6, 2017. The LLC is suspended.

A 30-day notice and a 5-day notice was given to Robert Spinnato, general manager for Tahoe Keys Marina. Clauser said in court that Spinnato requested a meeting with the TKPOA each time but they didn't respond to his request.

"The defendant (TKPOA) is doing its darndest to put the marina out of business," Clauser told Kingsbury. "We want to sit down and decide who owes what and we'll gladly pay what is owed."

Rounds told the judge that the marina is not a proper plaintiff since they haven't filed a fictitious business statement.

"All dealings are between the parties of Tahoe Keys Marina LLC and Tahoe Keys Property Owners Association," said Rounds in court. "The LLC is defunct and the Inc is not a proper entity."

"Pay the bill, this goes away," stated Rounds.

Even when paid there is still the issue of who they are going business with, Tahoe Keys Marina and Yacht Club, LLC or Tahoe Keys Marina Management Inc. The TKPOA Board of Directors is holding an executive meeting on Thursday but it is unknown if the issue with the marina will be discussed.

Kingsbury encouraged the two parties to use a mediator.

"It's frustrating for me as I want to get this resolved," said Judge Kingsbury. She can only rule in favor of the plantiff, TKPOA, until the marina's paperwork is in order.

"This is ridiculous," said Spinnato as he left the courtroom.

There are no future court dates scheduled at this time.