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PRESIDENT OVERSEEING
OPERATIONS
 QUESTION:
If the president is handling calls, issues, etc. without informing the
board--is he acting unilaterally? How does this impact other board
members?
ANSWER: Absent
a management company, board presidents typically oversee day-to-day
operations for their associations. That means handling calls, meeting
vendors and authorizing small expenditures. All of this is "unilateral" but within limits set by the board.
Limitations.
When it comes to unilateral expenditures, boards can authorize their
president to spend up to $100, $200, $500, etc. on HOA matters at the
president's discretion. The amount authorized varies from board to board
and depends on the association's budget. Once a limit has been
established, expenditures by the president must be reported to fellow
directors. Reporting can be done as costs are incurred and then noted in
the board's monthly financial report.
Duty to Monitor.
Board members have a duty to monitor the president's actions. If the
president fails to abide by spending limits set by the board, fails to
timely report matters affecting the association or exceeds other
limitations set by the board, fellow directors can immediately appoint a new president.
CANCELED MEETING
QUESTION: The board canceled a scheduled board meeting. When a meeting is canceled, does the membership need to be notified?
ANSWER: By statute, no. The only requirement in the Davis-Stirling Act is to give notice of meetings.
Nonetheless, common courtesy dictates that notice be given to the
membership whenever a meeting has been canceled. Boards need to be
respectful enough of their neighbor's time to let them know.
 Spelling. As an aside,the proper spelling of "canceled" in US English is
with one L (as you correctly spelled it in your question). Words such
as cancel and travel do not double the final L when using -er, -ed, and
-ing. However, over the past 20 years I've noticed that the British
spelling, which uses a second L, has crept into common usage. I see it
most often when airline flights are "cancelled."
NOTICE OF
CONTINUED MEETING
QUESTION:
If a
properly announced open meeting of an HOA board is continued to another
date, does the “continued” meeting itself carry the same notification
requirements as the original meeting, or may it be conducted without
further notice?
ANSWER:
You need to give notice of the continued meeting. Members must be given
at least four days notice of the time and place of board meetings
together with a meeting agenda. The only exception is for emergency meetings and executive sessions. Starting January 1, 2012 executive sessions will require at least two days prior notice to the membership.
FEEDBACK
 Minute-Taking.
In response to Bob W’s comment concerning a neutral person taking the
minutes at meetings, I couldn’t agree more! Meeting minutes can be used
in a court of law. Managers and board secretaries are not ideal
candidates to take minutes because they are engaged in conversation and
the decision making process. A neutral is not engaged in anything other
than listening and writing. A professional meeting recorder understands
what needs to be in the minutes and what does not. Just enough, but not
too much. -Victoria C.
New Laws #1.
The law is getting more and more restrictive in every way. I'm trying
to refinance and the amount of information now required, even by the
appraiser who also asks about rentals and management company, is almost
bordering on the obsessively obtrusive. -Harriet K.
New Laws #2.
While I typically support these types of laws I see two flaws: 1) it
overburdens small HOAs with excessive costs to comply with law and 2) I
see no form of civil penalties or ways of making boards liable for not
complying with this new law. -David A.
New Laws #3.
It's obvious community associations are losing the lobbying "contest"
with other special interest groups; e.g., Realtors. What are your
suggestions for fixing this problem? -Wayne W.
RESPONSE: Associations need to contribute to CAI-CLAC
(their voice in Sacramento) and write letters to legislators whenever
there is a call by CLAC to lobby for or against a particular piece of
legislation.
New Laws #4. The agenda law requires that all
items be listed with sufficient details for owners to understand the
questions to be debated and voted on. Does this apply to the executive
session agenda as well? Are agenda items such as "Personnel Matters,"
"Legal updates" and "Collection Log" adequate or too vague? -Denyse B.
RESPONSE:
The Open Meeting Act does not address the level of detail required for
agendas, whether open or executive. Because executive sessions are
confidential (Civil Code §1363.05(b))
and topics covered are only generally
noted in open meeting minutes (Civil Code §1363.05(c)), executive session items should not be described in detail in meeting agendas.
New Laws #5.
Often we need some type of clarification prior to a decision as a
board. We have discussed the issue in an open meeting and agreed that if
the issue is clarified, we would approve it. It is then clarified and
we confirm our votes by email so as not to stretch out the decision for
another 30 days. Is there a method we can use to continue this practice
under Senate Bill 563? -Dean H.
RESPONSE:
Instead of tabling an item pending clarification of an issue, approve
the item but make the approval conditional. If the clarification is "x"
the action moves forward. If the clarification is "y" the matter is not
approved and returns to the board at its next meeting for further
discussion. If it cannot wait 30 days, schedule a special meeting with four days notice (unless a longer notice period is required by your governing documents).
New Laws #6.
Some of the provisions are going to make it very difficult for our
board of directors. They are all volunteers, they have jobs and they
meet once a month. There are important timely items throughout the month
they need to rule upon: collection matters, maintenance matters,
personnel matters. Email votes are always verified at the next meeting
and recorded in the minutes. In addition to making board and executive
session meetings inordinately long, I think the new law will make it
even more difficult to attract new board members. Is there any chance of
revision before January 1, 2012? -Susan L.
RESPONSE: There is no chance at revision this year. The legislative session ended on September 9.
LA Times.
The LA Times columnists who pontificate about HOAs and present such
misleading information regarding the operation of HOAs are a thorn in
everyone’s side. Their views are so inaccurate and counterproductive to
creating harmony between owners, board members and managers. Surely
there is some avenue for rebuttal? Why is the LA Times so resistant to
permitting rebuttals to the content of the column? Any ideas as to how
we can find an avenue to present truthful information? -Diana S.
RESPONSE:
I received the following from a reader: "FYI ... I work for the LA
Times and have advised our Readers Rep of the comments about that
article. She was on vacation but is now looking into it regarding a
correction. Incidentally, errors can always be flagged by sending an
e-mail to readersrep@latimes.com. We appreciate the feedback/input/help!"
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