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Parker Ranch Homeowners Parker Ranch Homeowners Meeting Meeting

WelcomeWelcomeSeptember 14, 2008September 14, 2008

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AgendaAgenda

- Introduction- Introduction

- 2007-08 Board Goals and - 2007-08 Board Goals and AccomplishmentsAccomplishments

- End of Summer Picnic- End of Summer Picnic

- Financial Report- Financial Report

- 2008 Election for Board of Directors- 2008 Election for Board of Directors

- Q & A - Open Forum- Q & A - Open Forum

- Vote Counting (Optional to stay)- Vote Counting (Optional to stay)

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IntroductionIntroductionBoard Of Directors:Board Of Directors:Pam East Pam East – – PresidentPresidentShawn Mawla Shawn Mawla – – Vice PresidentVice PresidentHank Lawson Hank Lawson – – SecretarySecretaryAjit Goel Ajit Goel – – TreasurerTreasurerDrew Perkins Drew Perkins – – Member at LargeMember at Large

Architectural Control CommitteeArchitectural Control Committee:: Ken Sternberg – Chairperson Members: Ken Sternberg – Chairperson Members: Missy Coy and Gloria JanacMissy Coy and Gloria Janac

Nominating CommitteeNominating Committee::Shawn Mawla – ChairpersonShawn Mawla – ChairpersonMembers: Carol Greenleaf and Leslie HayMembers: Carol Greenleaf and Leslie Hay

Picnic CommitteePicnic Committee::Shawn Mawla – ChairpersonShawn Mawla – ChairpersonMembers: Missy Coy and Judy HartMembers: Missy Coy and Judy Hart

CC&R CommitteeCC&R Committee::Shawn Mawla – ChairpersonShawn Mawla – ChairpersonMembers: Pam East, Ajit Goel, John Members: Pam East, Ajit Goel, John Greenleaf and John HeindelGreenleaf and John Heindel

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2007-2008 Board Goals & Accomplishments:2007-2008 Board Goals & Accomplishments:

- Organize files and update financial records of PRHOA.- Organize files and update financial records of PRHOA.

- Maintenance of PR (remove debris, retaining wall painting).- Maintenance of PR (remove debris, retaining wall painting).

- Maintenance & Security of the Open Space.- Maintenance & Security of the Open Space.

- Apply CCR's to all homeowners fairly and evenly.- Apply CCR's to all homeowners fairly and evenly.

- Improve communication with our members, develop a - Improve communication with our members, develop a website.website.

- Update the CCR's to be in compliance with Davis-Stirling Act.- Update the CCR's to be in compliance with Davis-Stirling Act.

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The Davis Stirling Act:The Davis Stirling Act:Initiated by Gray Davis and Larry Stirling Initiated by Gray Davis and Larry Stirling

The The Davis-Stirling Common Interest Development ActDavis-Stirling Common Interest Development Act is the common is the common name of the California Civil Codes 1350 - 1376 which govern Associations name of the California Civil Codes 1350 - 1376 which govern Associations and other common interest developments in California. This act supercedes and other common interest developments in California. This act supercedes the CC&Rs, the Bylaws, the Articles of Incorporation, Rules and the CC&Rs, the Bylaws, the Articles of Incorporation, Rules and Regulations, and any other actions taken by the Board Regulations, and any other actions taken by the Board

State Law overrides CC&Rs, which are specific to each property. Likewise State Law overrides CC&Rs, which are specific to each property. Likewise both State Law and CC&Rs override rules that an Association has enacted.both State Law and CC&Rs override rules that an Association has enacted.

That is why it is so important to update our That is why it is so important to update our CC&Rs and the BylawsCC&Rs and the Bylaws to bring to bring them into compliance with the state laws.them into compliance with the state laws.

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CC&R and Bylaws Proposal:CC&R and Bylaws Proposal:The board is reviewing a proposal from Dave Van Atta The board is reviewing a proposal from Dave Van Atta (CC&R Attorney) to prepare amendments to the existing (CC&R Attorney) to prepare amendments to the existing CC&R and bylaws which will update the CC&R and bylaws CC&R and bylaws which will update the CC&R and bylaws for the legal requirement under the Davis Stirling Common for the legal requirement under the Davis Stirling Common Interest Development Act and other matters that need to Interest Development Act and other matters that need to be revised to comply with current laws.be revised to comply with current laws.

The goal is to use the existing documents as the base The goal is to use the existing documents as the base documents and prepare amendments which will address documents and prepare amendments which will address these legal issues that need updating. We do not want an these legal issues that need updating. We do not want an entirely new document that depart extensively from the entirely new document that depart extensively from the framework of our existing documents.framework of our existing documents.

Proposed fees would not exceed $3,500.Proposed fees would not exceed $3,500.

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At 12:00 PM on Sunday, September 21st. At 12:00 PM on Sunday, September 21st. At At Drew and Ellen PerkinsDrew and Ellen Perkins -12329 Vista Arroyo Ct. -12329 Vista Arroyo Ct.

GREEK Menu GREEK Menu Mediterranean themeMediterranean theme

It will be a lot of It will be a lot of FunFun

Summer PicnicSummer Picnic

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Parker Ranch HOA Parker Ranch HOA Meeting Meeting

Treasurer’s ReportTreasurer’s Report

September 14, 2008September 14, 2008

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Parker Ranch HOA Financial Review September ‘08Parker Ranch HOA Financial Review September ‘08

OutlineOutline

1. Income and Expense, Profit and Loss (2002-2007)1. Income and Expense, Profit and Loss (2002-2007)

2. Year End Cash Balance (2002-2007)2. Year End Cash Balance (2002-2007)

3.3. Annual Dues History (2000 – 2008)Annual Dues History (2000 – 2008)

4.4. Income and Expense (2007-2008) & Proposed Income and Expense (2007-2008) & Proposed Budget (2009)Budget (2009)

5.5. Expenses as % of Yearly Income (2007-2009)Expenses as % of Yearly Income (2007-2009)

6.6. SummarySummary

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Parker Ranch Homeowners Parker Ranch Homeowners Meeting Meeting September 2008September 2008

-30000

-20000

-10000

0

10000

20000

30000

40000

50000

60000

2002 2003 2004 2005 2006 2007

Total Income Expenses Profit/Loss

2002 - 20072002 - 2007 Income and Expenses, Profit/LossIncome and Expenses, Profit/Loss

1212

010,00020,00030,00040,000

50,00060,00070,00080,00090,000

2002 2003 2004 2005 2006 2007

Savings Account Operating Account

Parker Ranch Homeowners Parker Ranch Homeowners Meeting Meeting September 2008September 2008

Year End Cash BalancesYear End Cash Balances

$

1313

0

50

100

150

200

250

300

350

400

2000 2001 2002 2003 2004 2005 2006 2007 2008

Yearly Dues HistoryYearly Dues History

Parker Ranch HOA Financial Review September 2008Parker Ranch HOA Financial Review September 2008

$

Increased 16.6% over last 8 yearsIncreased 16.6% over last 8 years Average: 2.1% annual increase Average: 2.1% annual increase

1414

24000

25000

26000

27000

28000

29000

30000

31000

2007 Actual 2008 Budget 2008 YTD 9/12/08 2009 Budget

Dues/Late Fees Transfer Fee Interest from Savings Account Interest from Operating account

2007-2009 Income and Expense Statement & Proposed Budget2007-2009 Income and Expense Statement & Proposed Budget

Parker Ranch HOA Financial Review September 2008Parker Ranch HOA Financial Review September 2008

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Parker Ranch Homeowners' Association 2007-2009 Income and Expense Statement & Proposed Budget

2007 Actual 2008 Budget 2008 YTD 9/12/08 2009 Budget

Income

Dues/Late Fees 26,600.00 27,930.00 28,430.00 28,950.00

Transfer Fee 350.00 400.00 350.00 700.00 Interest from Savings Account 2,226.00 1,000.00 933.00 450.00 Interest from Operating account 11.00 - 9.00 10.00

Total: 29,187.00 29,330.00 29,722.00 30,110.00

Expenses

Dues Collection fee to Bank 231.00 275.00 - 300.00 Landscape (weed abatement) 4,350.00 5,500.00 - 5,500.00 Legal fees 9,608.00 5,000.00 - 5,000.00 P.O & safe deposit box fee 177.00 200.00 - 200.00 Property Taxes 362.00 375.00 - 375.00 Orion Security Patrol 7,117.00 7,500.00 3,285.00 8,600.00 July 4th extra security 593.00 750.00 791.00 800.00 Insurance (liability, work comp. etc) 6,766.00 6,900.00 6,361.00 6,700.00 Federal, state tax - 3,000.00 4,432.00 1,000.00 HOA Meeting 1,510.00 1,500.00 200.00 1,500.00 CPA - 2,500.00 2,435.00 650.00 Misc. (postage, picnic, notary) 396.00 500.00 280.00 500.00 Repair Fences and Maintenance - 750.00 543.00 5,000.00 New CC&R /By laws 1,178.00 1,500.00 - 1,500.00 Total: 32,288.00 36,250.00 18,327.00 37,625.00

Income - Expenses (3,101.00) (6,920.00) 11,395.00 (7,515.00)

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Parker Ranch HOA Financial Review September ‘08Parker Ranch HOA Financial Review September ‘08

Expenses as % of Income 2007-2009

0

5

10

15

20

25

30

35

Security Insur Weeds Legal Fee Inc Tax CPA HOAMeeting

CC&R Other Repair &Maint

% o

f Inc

ome

2007 2008 2009

Other expenses include postage, bank fee, property taxes and misc chargesOther expenses include postage, bank fee, property taxes and misc charges

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SummarySummary

Gradual erosion in cash position – borrowing from savings Gradual erosion in cash position – borrowing from savings every yearevery year

Deficit in 2009 projected to be $7.5KDeficit in 2009 projected to be $7.5K Monthly security expenses increased by 30% starting Monthly security expenses increased by 30% starting

August 08August 08 Cleaning of dry brush and fallen trees etc in open spaces Cleaning of dry brush and fallen trees etc in open spaces

requires attention and expenserequires attention and expense Dues for 2009 to increase by 5% to $386Dues for 2009 to increase by 5% to $386

Parker Ranch HOA Financial Review September Parker Ranch HOA Financial Review September ‘08‘08

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Election of Directors:Election of Directors:

There are two (2) vacancies on the Board of Directors at this There are two (2) vacancies on the Board of Directors at this time and each Homeowner gets two (2) votes. As specified time and each Homeowner gets two (2) votes. As specified in the Parker Ranch CC&Rs, cumulative voting may be used in the Parker Ranch CC&Rs, cumulative voting may be used in the election. You may allocate your two (2) votes among in the election. You may allocate your two (2) votes among the candidates as you wish. the candidates as you wish.

1.1. Ajit GoelAjit Goel

2.2. Shawn MawlaShawn Mawla

3.3. (Name of Write-In Director 1)(Name of Write-In Director 1)

4. 4. (Name of Write-In Director 2)(Name of Write-In Director 2)

I abstain from voting - I abstain from voting - You ca abstain on one or both of your You ca abstain on one or both of your votesvotes

(Many Thanks to (Many Thanks to Pat WeberPat Weber of of The League of Women The League of Women votersvoters. . PatPat will count our Ballots for us) will count our Ballots for us)..

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Parker Ranch Homeowners Parker Ranch Homeowners Meeting Meeting

Q & AQ & AOpen FormOpen Form

September 14, 2008September 14, 2008

2020

Parker Ranch Homeowners Parker Ranch Homeowners Meeting Meeting

Thank YouThank YouMeeting AdjournMeeting Adjourn

September 14, 2008September 14, 2008

2121

Vote CountVote Count(Optional to (Optional to

stay)stay)

2222

Back UpBack Up

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SUMMARY OF NEW LAWS PASSED IN 2006SUMMARY OF NEW LAWS PASSED IN 2006

Following is a summary of the new laws that were passed in 2006. Some of them took effect in 2006 and others started on Following is a summary of the new laws that were passed in 2006. Some of them took effect in 2006 and others started on January 1, 2007. For more information about these laws, go to "Newsletters" at January 1, 2007. For more information about these laws, go to "Newsletters" at www.davis-stirling.com/newsletter.htmlwww.davis-stirling.com/newsletter.html. .

Granting Exclusive Use.Granting Exclusive Use. Giving individual owners the exclusive right to use any portion of the common areas now requires approval of 67% of the Giving individual owners the exclusive right to use any portion of the common areas now requires approval of 67% of the membership. Civil Code §1363.07 membership. Civil Code §1363.07

Membership List.Membership List. Starting July 1, 2006, boards can no longer withhold the membership list even if it provides an alternate means for Starting July 1, 2006, boards can no longer withhold the membership list even if it provides an alternate means for communicating with members. However, individual owners may opt out of the sharing of their name and address by communicating with members. However, individual owners may opt out of the sharing of their name and address by notifying the association in writing that they prefer to be contacted by the alternative process. Civil Code §1365.2(a)(1)(I) notifying the association in writing that they prefer to be contacted by the alternative process. Civil Code §1365.2(a)(1)(I)

Inspection of RecordsInspection of Records.. Associations must now produce records for inspection by the membership within specific time frames: Civil Code Associations must now produce records for inspection by the membership within specific time frames: Civil Code §1363.05(d) and Civil Code §1365.2§1363.05(d) and Civil Code §1365.2

Electronic Records.Electronic Records. Associations may now deliver records in electronic form, provided the records are in a format that prevents the records from Associations may now deliver records in electronic form, provided the records are in a format that prevents the records from being altered. Civil Code §1365.2 being altered. Civil Code §1365.2

Proxies.Proxies. Previously, anyone could act as a proxy holder. Members can only designate other members to attend in their place. Previously, anyone could act as a proxy holder. Members can only designate other members to attend in their place. Proxies must now be on 2 pages, the first with the authorizing language, the second page with the vote. Civil Code Proxies must now be on 2 pages, the first with the authorizing language, the second page with the vote. Civil Code 1363.03(d) 1363.03(d)

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SUMMARY OF NEW LAWS PASSED IN 2006SUMMARY OF NEW LAWS PASSED IN 2006

Reserves.Reserves. Boards must now include in the Association’s budget (i) the current deficiency in reserve funding expressed on a per unit Boards must now include in the Association’s budget (i) the current deficiency in reserve funding expressed on a per unit basis, (ii) a statement indicating whether the board decided to defer repairs or replacement of a major component, and (iii) basis, (ii) a statement indicating whether the board decided to defer repairs or replacement of a major component, and (iii) a statement indicating whether the association has any outstanding loans. Starting January 1, 2009, a summary of the a statement indicating whether the association has any outstanding loans. Starting January 1, 2009, a summary of the reserve funding plan must be distributed to all members. Civil Code 1363.5 reserve funding plan must be distributed to all members. Civil Code 1363.5

Assessment Collection.Assessment Collection. Boards are now required to be actively involved in the collection process. Boards must include with pre-lien letters (by Boards are now required to be actively involved in the collection process. Boards must include with pre-lien letters (by certified mail) a notice of an owner's right to “meet and confer” with the board. Boards must authorize the recording of a lien certified mail) a notice of an owner's right to “meet and confer” with the board. Boards must authorize the recording of a lien by a majority vote at an open meeting. The vote must be recorded in the minutes of the meeting. The minutes may not by a majority vote at an open meeting. The vote must be recorded in the minutes of the meeting. The minutes may not disclose the name of the delinquent owner and can only refer to the address by its lot/tract number or the assessor’s parcel disclose the name of the delinquent owner and can only refer to the address by its lot/tract number or the assessor’s parcel number. number.

Boards are allowed to record a lien but may not start foreclosure until the amount is at least $1,800 or the delinquency is at Boards are allowed to record a lien but may not start foreclosure until the amount is at least $1,800 or the delinquency is at least 12 months old. Foreclosure cannot commence until the board authorizes it in an open meeting and records the least 12 months old. Foreclosure cannot commence until the board authorizes it in an open meeting and records the decision in the minutes. Notice of the board’s decision must be personally served on the owner if the owner resides in the decision in the minutes. Notice of the board’s decision must be personally served on the owner if the owner resides in the unit or by first class mail at the most current address in the association’s records provided by the owner. Civil Code unit or by first class mail at the most current address in the association’s records provided by the owner. Civil Code §1367.1(a) §1367.1(a)

Architectural Committee. Architectural Committee. Architectural committees must make written decisions and explain why the proposed change was not approved, and Architectural committees must make written decisions and explain why the proposed change was not approved, and provide a description of the procedure for reconsideration of the decision. Associations are now required to annually mail a provide a description of the procedure for reconsideration of the decision. Associations are now required to annually mail a notice to all homeowners describing the association’s architectural application process, including the procedure used to notice to all homeowners describing the association’s architectural application process, including the procedure used to review and approve or deny changes. Civil Code §1378 review and approve or deny changes. Civil Code §1378

American Flag.American Flag. Associations may not restrict members from displaying the U.S. flag on their own property or exclusive use common area.Associations may not restrict members from displaying the U.S. flag on their own property or exclusive use common area.