Serving California's Community Associations October 2, 2011
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.


 Adrian J. Adams, Esq.


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Reprinted from
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Now is a good time to update your documents. Azy Saghian.


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