December 1, 2008
Valle Escondido HOA Elections 2008
A homeowner and the developer have requested a public forum in which to discuss the issues on this ballot. In lieu of providing them with a list of everyone's email address, we have again opened the election blog that was started last year. Please feel free to view the elected committees positions on this issue and post your own questions, comments and concerns.
Issue 1 - Proposed 50% Increase in Annual Dues
As most of you are aware, the water distribution system here in Valle Escondido is not adequate year-round. We have explored a number of alternatives to improving the system and have decided to move forward with what appears to be an adequate solution. It is also the least expensive solution that we have found. This project, estimated to cost up to about $30,000 needs to be funded.
Additionally, it is becoming quite evident that road repairs are needed in may locations within Valle Escondido. Such repairs are quite costly and also need to be funded. We do not have a full cost estimate for the project, but as a frame of reference there were several potholes that were repaired a year ago. The cost for that (apparently small and simple) work was $750. Clearly, the cost for work of the magnitude that is needed here will be very substantial.
There are also two projects that have been proposed to increase our security. One potential project is to repair and enhance the fence line that runs from the security gate to the top of the property behind the 12-plex. This area has had numerous attempts of unauthorized entry. The second potential project would be to add motion detector alarms and several cameras to better protect our front entrance during nighttime hours. In the long run, this should be more cost effective than adding additional manpower.
And, as everyone can appreciate, there will be more maintenance project needs that arise as time goes on. Each of these needs to be funded.
Therefore, Ballot Issue #1 is a proposal to increase the annual fee for each owner by 50%, bringing the annual fee to $1,350 from $900. (For reference, this $450 annual increase amounts to $37.50 per month). With a 2/3 majority vote of those owners voting, we can proceed with the necessary maintenance projects in a timely manner.
We did consider – as an alternative – proposing a one-time special assessment. We ultimately rejected that proposal for several reasons. We believe the annual fee increase is a better approach because we will be able to avoid having special elections every time that a project needs to be undertaken. Also, the expense, delays and processing costs associated with special collections are troublesome, rather than simply changing the amount of the annual fee. An additional advantage of the annual fee approach will be to allow a financial reserve to be developed over time to accommodate unforeseen expenses (e.g., landslide cleanup).
We therefore strongly urge your approval of this ballot measure.
Additionally, it is becoming quite evident that road repairs are needed in may locations within Valle Escondido. Such repairs are quite costly and also need to be funded. We do not have a full cost estimate for the project, but as a frame of reference there were several potholes that were repaired a year ago. The cost for that (apparently small and simple) work was $750. Clearly, the cost for work of the magnitude that is needed here will be very substantial.
There are also two projects that have been proposed to increase our security. One potential project is to repair and enhance the fence line that runs from the security gate to the top of the property behind the 12-plex. This area has had numerous attempts of unauthorized entry. The second potential project would be to add motion detector alarms and several cameras to better protect our front entrance during nighttime hours. In the long run, this should be more cost effective than adding additional manpower.
And, as everyone can appreciate, there will be more maintenance project needs that arise as time goes on. Each of these needs to be funded.
Therefore, Ballot Issue #1 is a proposal to increase the annual fee for each owner by 50%, bringing the annual fee to $1,350 from $900. (For reference, this $450 annual increase amounts to $37.50 per month). With a 2/3 majority vote of those owners voting, we can proceed with the necessary maintenance projects in a timely manner.
We did consider – as an alternative – proposing a one-time special assessment. We ultimately rejected that proposal for several reasons. We believe the annual fee increase is a better approach because we will be able to avoid having special elections every time that a project needs to be undertaken. Also, the expense, delays and processing costs associated with special collections are troublesome, rather than simply changing the amount of the annual fee. An additional advantage of the annual fee approach will be to allow a financial reserve to be developed over time to accommodate unforeseen expenses (e.g., landslide cleanup).
We therefore strongly urge your approval of this ballot measure.
Issue 2 - Change the Legal Structure of the Association
Upon commencing work early this year, the committee wanted to be assured that all actions taken on behalf of homeowners would be correct and legal. As such, we initiated a review of the legal standing of the Association as well as all legal actions previously taken. What we discovered was not encouraging.
The very short version of what we found was that (as many of you know from reading the CC&Rs) this association was formed by Lecheria, not by the homeowners (of which there were very few at the time of formation). Additionally, we discovered that a number of legal filings presumably made on behalf of the Association by prior counsel were, in fact, not accomplished. Also, some time ago, Lecheria divested itself of the actual Valle Escondido property, so there remains no reason that the Association should be under its legal auspices. Additionally, counsel has just now informed us that with the recent $1.354 million judgment by the Supreme Court in a lawsuit against Lecheria, there is a remote, but potential, risk that the plaintiff could pursue the funds of the Association in the event Lecheria does not pay the ordered settlement. That possibility exits because the existing association was formed by Lecheria. So, potentially there is some legal risk to the Association’s assets due to actions taken by Lecheria in the past or future.
We know that there are many things that need to be addressed, corrected and updated in the CC&Rs. This can be done regardless, but we believe that the correct way to do this is to first create a new, legal association and close the old one. Moving on from there, all actions and activities will be on firm ground and the Association will truly be one that the homeowners have formed and will control.
All this will take some time to do because of the Panamanian legal structure and processes. It is not, however, particularly expensive. The exact cost is unknown, but there is little legal (attorney) work to be done. The majority of the actual expense will simply be notary and filing fees. Those are estimated not to exceed two or three thousand dollars and hopefully will only be in the hundreds. This will take a number of months (or more) to accomplish, simply because of all the governmental “processing” time. This ballot item is simply to bring to a vote by the homeowners the authorization for the committee to begin the changeover process.
However, in order to proceed with this action we need a very large majority to vote for approval of this initiative. Per the bylaws of the existing association, a favorable vote of 75% OF ALL OWNERS (not just of those voting) is required. So please, cast your vote!
We obviously and strongly urge your approval of this ballot measure. If not passed, our Association will continue to be the one formed by and under the auspices of one of the developer’s companies.
The very short version of what we found was that (as many of you know from reading the CC&Rs) this association was formed by Lecheria, not by the homeowners (of which there were very few at the time of formation). Additionally, we discovered that a number of legal filings presumably made on behalf of the Association by prior counsel were, in fact, not accomplished. Also, some time ago, Lecheria divested itself of the actual Valle Escondido property, so there remains no reason that the Association should be under its legal auspices. Additionally, counsel has just now informed us that with the recent $1.354 million judgment by the Supreme Court in a lawsuit against Lecheria, there is a remote, but potential, risk that the plaintiff could pursue the funds of the Association in the event Lecheria does not pay the ordered settlement. That possibility exits because the existing association was formed by Lecheria. So, potentially there is some legal risk to the Association’s assets due to actions taken by Lecheria in the past or future.
We know that there are many things that need to be addressed, corrected and updated in the CC&Rs. This can be done regardless, but we believe that the correct way to do this is to first create a new, legal association and close the old one. Moving on from there, all actions and activities will be on firm ground and the Association will truly be one that the homeowners have formed and will control.
All this will take some time to do because of the Panamanian legal structure and processes. It is not, however, particularly expensive. The exact cost is unknown, but there is little legal (attorney) work to be done. The majority of the actual expense will simply be notary and filing fees. Those are estimated not to exceed two or three thousand dollars and hopefully will only be in the hundreds. This will take a number of months (or more) to accomplish, simply because of all the governmental “processing” time. This ballot item is simply to bring to a vote by the homeowners the authorization for the committee to begin the changeover process.
However, in order to proceed with this action we need a very large majority to vote for approval of this initiative. Per the bylaws of the existing association, a favorable vote of 75% OF ALL OWNERS (not just of those voting) is required. So please, cast your vote!
We obviously and strongly urge your approval of this ballot measure. If not passed, our Association will continue to be the one formed by and under the auspices of one of the developer’s companies.
October 10, 2007
Proposed Changes to Election Portions of CC&Rs
Proposed Revisions to the
GENERAL REGULATIONS OF THE VALLE ESCONDIDO HOMEOWNERS ASSOCIATION COVENANTS, RIGHTS, DUTIES AND RESTRICTIONS
CHAPTER II
Powers and Duties of the Association
Article 6. Steering Committee: This group is composed of 5 members who will serve as
the decision making body for the Valle Escondido Homeowners’ Association. All
procedures for the election of the Steering Committee will follow the guidelines
established in Chapter III of this document.
Steering Committee Members will be elected on a rotating basis with two (2) new
members beginning their term in even number years and three (3) new members
beginning their term in odd number years. Each member will serve for a two-year term.
Committee members will be elected by a simple majority of voters who cast their
vote personally or by proxy in accordance with the guidelines established in the Rules of
Election. If there are two members being elected, the two candidates with the most votes
will be elected, if three members are being elected, the three candidates with the most
votes will be elected.. In the event of a tie, there will be a run-off scheduled within 7
days of the original election. Nominations to the Steering Committee will be taken per
the procedures laid out in the Valle Escondido Rules of Election.
By the nomination deadline, if the number of candidates matches the number of
committee member vacancies, the election does not need to be held and can be deemed
complete by the Election Inspector.
The required quorum for this election will be the same as that established in
Chapter III, Article 4 of this document.
At the beginning of each year, the five (5) Steering Committee members will elect
among themselves a President, Vice President, Secretary, and Treasurer. A member may
hold more than one position at the discretion of the acting committee.
The Steering Committee will make decisions by simple majority with a minimum
of three Steering Committee members casting their vote. The Steering Committee is
empowered to carry out and enforce these decisions. Items requiring legal filing will be
submitted to the Board of Directors.
If a Steering Committee member is unwilling or unable to fulfill his or her
position for the elected term, the remaining Committee members will, through majority
vote with the departing member casting a vote, select a replacement. This replacement
will be in effect for the remainder of the term being vacated.
CHAPTER III
VOTING RIGHTS
Article 1. Rules of Election. Elections will be conducted in accordance with the Valle
Escondido Rules of Election, which can be modified by majority vote of the existing
Steering Committee. The Valle Escondido Rules of Election provides for the existence of
an Election Inspector to ensure the validity of all elections.
Article 2. Voting Rights. One vote will be allotted to each lot. For election purposes,
this vote will be referred to as a "Member" in the Valle Escondido Homeowners'
Association. When one home is constructed on two or more lots, the member will be
entitled to only one vote as assessments are collected to the ratio of one assessment per
constructed home. When more than one person holds interest in any lot, they will decide
among themselves how the vote will be cast, but in no event shall more than one vote be
cast with respect to any lot.
Article 3. Member in Good Standing. Each member is entitled to one vote per lot given
that the owner is a “Member in Good Standing”. A Member is Good standing is one
who is current in all debts to the Valle Escondido Homeowners’ Association. It is the
responsibility of the Election Inspector(s) to determine the eligibility of voting members.
This must be done twenty-five (25) prior to the close of the election.
Article 4. Quorum. A quorum is constituted by 60% of Members casting an online ballot
and/or attending a meeting with the stated purpose of hosting an election.. If the required
quorum is not forthcoming, another electronic ballot and/or meeting may be called, and
the required quorum at any such subsequent meeting shall be one-half (1/2) of required
quorum at the preceding meeting, or 30% of the members. No such subsequent meeting
shall be held more than sixty (60) days following the preceding meeting.
Article 5. Election Timeframe. Notice of elections will be given via email
communication and/or an open meeting no less than twenty five (25) working days or
more than fifty (50) working days prior to the final voting date inf the election.
Information regarding candidates and issues will be provided in writing no less then 2
weeks prior to the final date of voting in the election.
CHAPTER V
Maintenance Dues and Assessments
Article 1. Personal Obligation of Assessments. Property owners are subject to two forms
of assessments: 1) Annual dues as set forth in Chapter V, Article 3, and 2) Special
Assessments as set forth in Chapter V, Article 4. Payment of dues begins when at least
one of the following criteria is met:
(a) Acceptance of Title for the property
(b) Inhabitance / use of the property
Article 3. Annual Dues. In January 1, 2003 the annual dues were set at nine hundred
dollars ($900.00) per Lot.
After consideration of current maintenance costs and further needs of the
Association, the Steering Committee may increase the annual dues no more than 20% of
the current fee in a two-year period. This increase must then be submitted to the Board
of Directors for appropriate legal filing.
If an increase of more than 20% is deemed necessary by the Steering Committee,
a special vote of the members will be called. Such an assessment must be approved by
two-thirds (2/3) of members who are voting in person or by proxy. An election for this
purpose shall follow the election requirements as stated in Chapter III of this document.
Article 4. Special Assessments. In addition to the annual assessments authorized above,
the Valle Escondido Homeowners’ Association may levy in any assessment year, a
special assessment applicable to that year only. This assessment would be for the
purpose of defraying, in whole or in part, the cost of any construction, reconstruction,
repair or replacement of a capital improvement upon the Common Area. An election for
this purpose shall follow the election requirements as stated in Chapter III of this
document.
Such special assessments shall require the approval of more than two-thirds (2/3)
of members who are voting in person or by proxy. An e-mail, fax or written invoice for
the annual assessment shall be sent to every Owner subject thereto no sooner than 30
days after the close of the election. Failure to pay the assessment will result in the
procedures and penalties as detailed in Chapter V, Article 10.
CHAPTER XI
General Provisions
Article 2. The covenants and restrictions of these General Regulations shall run with and
bind the land, and shall enforceable by the Steering Committee for the benefit of all
members, their respective legal representatives, heirs, successors and assigns.
The Steering Committee may recommend amendments to these covenants and
restrictions. Any potential amendment shall be put to a vote of members. Such an
election shall follow the requirements as stated in Chapter III of this document. Any
amendment shall have the assent of 75% of members who are voting in person or by
proxy. This resolution will then be duly signed and filed by the Board of Directors.
GENERAL REGULATIONS OF THE VALLE ESCONDIDO HOMEOWNERS ASSOCIATION COVENANTS, RIGHTS, DUTIES AND RESTRICTIONS
CHAPTER II
Powers and Duties of the Association
Article 6. Steering Committee: This group is composed of 5 members who will serve as
the decision making body for the Valle Escondido Homeowners’ Association. All
procedures for the election of the Steering Committee will follow the guidelines
established in Chapter III of this document.
Steering Committee Members will be elected on a rotating basis with two (2) new
members beginning their term in even number years and three (3) new members
beginning their term in odd number years. Each member will serve for a two-year term.
Committee members will be elected by a simple majority of voters who cast their
vote personally or by proxy in accordance with the guidelines established in the Rules of
Election. If there are two members being elected, the two candidates with the most votes
will be elected, if three members are being elected, the three candidates with the most
votes will be elected.. In the event of a tie, there will be a run-off scheduled within 7
days of the original election. Nominations to the Steering Committee will be taken per
the procedures laid out in the Valle Escondido Rules of Election.
By the nomination deadline, if the number of candidates matches the number of
committee member vacancies, the election does not need to be held and can be deemed
complete by the Election Inspector.
The required quorum for this election will be the same as that established in
Chapter III, Article 4 of this document.
At the beginning of each year, the five (5) Steering Committee members will elect
among themselves a President, Vice President, Secretary, and Treasurer. A member may
hold more than one position at the discretion of the acting committee.
The Steering Committee will make decisions by simple majority with a minimum
of three Steering Committee members casting their vote. The Steering Committee is
empowered to carry out and enforce these decisions. Items requiring legal filing will be
submitted to the Board of Directors.
If a Steering Committee member is unwilling or unable to fulfill his or her
position for the elected term, the remaining Committee members will, through majority
vote with the departing member casting a vote, select a replacement. This replacement
will be in effect for the remainder of the term being vacated.
CHAPTER III
VOTING RIGHTS
Article 1. Rules of Election. Elections will be conducted in accordance with the Valle
Escondido Rules of Election, which can be modified by majority vote of the existing
Steering Committee. The Valle Escondido Rules of Election provides for the existence of
an Election Inspector to ensure the validity of all elections.
Article 2. Voting Rights. One vote will be allotted to each lot. For election purposes,
this vote will be referred to as a "Member" in the Valle Escondido Homeowners'
Association. When one home is constructed on two or more lots, the member will be
entitled to only one vote as assessments are collected to the ratio of one assessment per
constructed home. When more than one person holds interest in any lot, they will decide
among themselves how the vote will be cast, but in no event shall more than one vote be
cast with respect to any lot.
Article 3. Member in Good Standing. Each member is entitled to one vote per lot given
that the owner is a “Member in Good Standing”. A Member is Good standing is one
who is current in all debts to the Valle Escondido Homeowners’ Association. It is the
responsibility of the Election Inspector(s) to determine the eligibility of voting members.
This must be done twenty-five (25) prior to the close of the election.
Article 4. Quorum. A quorum is constituted by 60% of Members casting an online ballot
and/or attending a meeting with the stated purpose of hosting an election.. If the required
quorum is not forthcoming, another electronic ballot and/or meeting may be called, and
the required quorum at any such subsequent meeting shall be one-half (1/2) of required
quorum at the preceding meeting, or 30% of the members. No such subsequent meeting
shall be held more than sixty (60) days following the preceding meeting.
Article 5. Election Timeframe. Notice of elections will be given via email
communication and/or an open meeting no less than twenty five (25) working days or
more than fifty (50) working days prior to the final voting date inf the election.
Information regarding candidates and issues will be provided in writing no less then 2
weeks prior to the final date of voting in the election.
CHAPTER V
Maintenance Dues and Assessments
Article 1. Personal Obligation of Assessments. Property owners are subject to two forms
of assessments: 1) Annual dues as set forth in Chapter V, Article 3, and 2) Special
Assessments as set forth in Chapter V, Article 4. Payment of dues begins when at least
one of the following criteria is met:
(a) Acceptance of Title for the property
(b) Inhabitance / use of the property
Article 3. Annual Dues. In January 1, 2003 the annual dues were set at nine hundred
dollars ($900.00) per Lot.
After consideration of current maintenance costs and further needs of the
Association, the Steering Committee may increase the annual dues no more than 20% of
the current fee in a two-year period. This increase must then be submitted to the Board
of Directors for appropriate legal filing.
If an increase of more than 20% is deemed necessary by the Steering Committee,
a special vote of the members will be called. Such an assessment must be approved by
two-thirds (2/3) of members who are voting in person or by proxy. An election for this
purpose shall follow the election requirements as stated in Chapter III of this document.
Article 4. Special Assessments. In addition to the annual assessments authorized above,
the Valle Escondido Homeowners’ Association may levy in any assessment year, a
special assessment applicable to that year only. This assessment would be for the
purpose of defraying, in whole or in part, the cost of any construction, reconstruction,
repair or replacement of a capital improvement upon the Common Area. An election for
this purpose shall follow the election requirements as stated in Chapter III of this
document.
Such special assessments shall require the approval of more than two-thirds (2/3)
of members who are voting in person or by proxy. An e-mail, fax or written invoice for
the annual assessment shall be sent to every Owner subject thereto no sooner than 30
days after the close of the election. Failure to pay the assessment will result in the
procedures and penalties as detailed in Chapter V, Article 10.
CHAPTER XI
General Provisions
Article 2. The covenants and restrictions of these General Regulations shall run with and
bind the land, and shall enforceable by the Steering Committee for the benefit of all
members, their respective legal representatives, heirs, successors and assigns.
The Steering Committee may recommend amendments to these covenants and
restrictions. Any potential amendment shall be put to a vote of members. Such an
election shall follow the requirements as stated in Chapter III of this document. Any
amendment shall have the assent of 75% of members who are voting in person or by
proxy. This resolution will then be duly signed and filed by the Board of Directors.
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