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SPEED BUMPS
FROM RESERVES
QUESTION:
Can the board install a new component (speed bumps) from reserves? If I
understand correctly, it can't come from reserves since it is a new
component which will alter the appearance of the complex, and it can't
come from the operating fund either.
ANSWER:
By definition, the installation of speed bumps would be a capital improvement, i.e., the addition of a component that did not
previously exist. As such, a fair argument could be made that speed bumps cannot be funded from reserves since
reserve monies are set aside for existing common area components.
Contrary Argument.
However, the streets themselves
are existing reserve items and adding
safety features to streets such as reflectors, additional striping, signage and the like are elements
of streets that legitimately fall within the discretion of the
board
of directors. If the cost is relatively minor, it could justifiably come from
street reserves. If the cost is significant, it would likely require a special assessment to pay for the improvements.
If a safety concern can reasonably be
demonstrated and the cost to install is a small percentage of the street funds, I
suspect a judge would side with the board on using reserve funds for that purpose.
RECOMMENDATION:
Since this issue is open to debate, boards should discuss with legal
counsel how best to balance any safety and cost concerns related to
reserve expenditures.
ROBERT'S RULES OF ORDER
The
11th edition of Roberts' Rules of Order became available this week. The
Davis-Stirling Act requires that membership meetings (such as Annual
Meetings) be conducted in
accordance with a recognized system of parliamentary procedure. Civil Code §1363(d). Board meetings, on the other hand, are not required to use parliamentary procedures. Even so, most boards use a relaxed or less formal version of Robert's Rules to conduct their meetings.
While there are 120 changes in the 11th edition, few will impact HOA meetings. Attached is a "cheat sheet"
to the new Robert's Rules. One change is notable; the former method of
asking a question, "Point of Information," has been renamed "Request for
Information," in hopes that members will understand they should use it
to request information, not provide information.
Thanks goes to Jim Slaughter, an attorney with Forman Rossabi Black, PA who practices association law in N. Carolina and is Past President of the American College of
Parliamentary Lawyers, for alerting me to this update.
UNFINISHED BUSINESS
QUESTION:
Davis-Stirling requires members to be given meeting agendas at least
four days prior to the meeting. If some items are not addressed in
the meeting, should the minutes reflect that?
ANSWER:
Yes, any unfinished business should be noted as such in the minutes,
otherwise there will be disconnect between the published agenda and the
minutes. Unfinished agenda items can be marked "carried over to next
meeting" or noted in some fashion to show that they were not addressed
in the meeting and will be on the agenda for the next meeting.
If an agenda item was taken up by the board for discussion and a motion
was made but not voted on, the matter should be marked as "tabled."
FEEDBACK
Minutes. While
reading your minutes commentary, I am reminded of a saying of my law
professor many moons ago about appropriate brevity: "Appropriate length
is like the skirts on Broadway--short enough to be interesting and long
enough to cover the subject." Karl L.
Legislature. You
mentioned the legislative session ended September 9th. When does the
next session begin? Is the public allowed to observe? Is notice with
an agenda posted in a prominent location for citizens to view? -Paige B.
RESPONSE: I checked with our legislative guru Skip Daum for answers:
When does the next session begin?
The second half of the biennial session convenes 1/4/12.
Is the public allowed to observe?
Always... either in person or at www.calchannel.com
Is notice with an agenda posted for citizens to view?
Yes: www.senate.ca.gov and www.assembly.ca.gov
LA Times.
The discussion I had with the LA Times “Readers Rep” in 2005 got me
nowhere. I think having their authors billed as HOA specialists is akin
to having a self-proclaimed racist writing a column on fair housing.
Sure, they are somewhat familiar with the issues but their take on them
is biased and does not serve the public well. -Marla H.
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