CAPRI BY THE SEA
OWNER COMMENTS - CC&R REWRITE
TOWN HALL METING
OCTOBER 3, 2014
MARYETTA BOWMAN, UNIT 303
Hello, I’m Maryetta Bowman, owner of Capri #303. I’m thankful to all of the Board members that are so tirelessly working on revising the new documents. I appreciate their service and thank them for making the Capri by the Sea a wonderful place to live. I plan to spend the rest of my life here at the beach.
I would like to discuss the item Article 9.2 regarding the size/weight of pets.
I’ve been involved with hospital therapy dogs for many years. The small dogs up to 15 pounds seem very limiting for OWNERS. There are many breeds of small and miniature dogs that still are small and easily taken on a plane that are 20 to 25 pounds as well. All dogs, small or not, are the responsibility of their owners. Dog behaviors are controlled by their owners. Barking can be controlled by a bark collar. I agree the dogs should not be in the lobby or pool areas. But I would like to see the Board and other owners consider the pet weight to be amended to: “weight of dogs not to exceed 20 or even 25 pounds”. That’s very realistic for small dogs and miniatures.
Again, my sincere appreciation to the Board,
With your Success in Mind,
Maryetta Bowman
JAMES MCGUIGAN, UNIT 308
Article 3 --number of Board of Directors. As a 17 year board member of my own HOA with 5 board members I cannot imagine 7. As a matter of being able to agree on issues and pragmatics has the discussion of reducing to 5 directors been addressed?
Article 8.1 lease requirements. If renters and guests are the primary cause of damages, problems, weekend and holiday late night noise or rowdiness and other related complaints why do we take a hotel position on duration stays. I know at one time it used to be 1 week. Economics dictated a need to address. Times have changed.
Sincerely,
Jim McGuigan
308
TONY PACE, UNIT 606, 802, 803 AND 1004
Capri by the Sea Homeowners Association,And Board of Directors
Dear Members of the Capri by the Sea Association and Members of theBoard of Directors.
I am whole heatedly against reducing the percentage of votes necessaryto make future changes to the CC&R's of our Association. Because I am aRealtor I have witnessed other Associations who have reduced, or amended
their threshold of approval for changes, that mostly fall into intoanarchy and legal squabbles and challenges. Throughout the years that Ihave examined those Associations, this type of negative discourse thataccompanies this type of governess, has not only alienated the most ofthe memberships of those Associations over time, but has greatly reduced
the normal appreciation of property values in these associations. Aswith most changes to the status quo, even the most beneficial changesleave at least (40-49.9%) of the members voting against any changes, onany one proposal. If there are a series of proposals, over say five orten years, those Associations would have alienated most of the members,thus creating chaos, resentment, and anarchy in the implementation ofthe new changes. This situation makes many of the members look to escapethe Association's by selling, or not using their condos. WhenAssociations have a greater turnover of owners, the property values ofevery ones condos become dwarfed in comparison with other likeproperties and at the least, end up costing the Owners greatly in termsof value that normally would have been earned by those Owners, if therewere fewer Listings or Sales in that same Association. I know thedifficulty with obtaining a (66 2/3 %) approval is challenging, but thatis the only way for the General Membership to receive adequate discourseon the subject of the changes, to garner the large percentage ofapproval for a change from their respective Associations. Without the
requirement of at least (66%), the discourse is reduced and theresentment for the Association grows large. When someone purchases acondo in an Association they must approve of the CC&R's that are inplace at the time of purchase. If the changes to the CC&R's are notagreed upon by a overwhelming majority of the Owners, then you have alarge number of Condo Owners who do not approve of the Regulations andRules of their purchase. Frankly, I would prefer a (75%) requirementfor amendments, or changes.Subsequently, I will be voting down with my four condos voting power,
any CC&R updates, or changes that have any change in voting requirementsincluded in them.
Thank you for reading my sentiments,
Tony L. Pace
Capri by the Sea condos #'s 606, 802, 803, 1004.
VINCENT SUNZERI, UNIT 205
By-Laws:
Article 3.5 Term of Office of Directors:
There should be a limit to the number of consecutive terms to which a Director may be re-elected. While there’s tremendous benefit to having continuity on the board, and the commitment is greatly appreciated, unlimited tenure can open the door to potential risks to the HOA. I can outline these risks if you’d like. I would recommend we utilize “flexible limits” – allow Directors to serve 2 or 3 consecutive terms then step down for a year. Members could choose to become re-elected after the one year gap.
Article 3.6.2 Vacancies and Removal of Directors:
The sentence, “Any removal without cause shall be approved by the vote of the Members representing a majority of the votes cast when a quorum is established”, is unclear about how the quorum is established. Is the quorum to be established by attendance at a regular HOA meeting? Is the quorum established by ballots cast?
Article 4.7 Quorum at Board Meetings:
The number of Directors to constitute a quorum should be increased to four (4) rather than more than (1). This would prevent decisions being made by just a couple of individuals. The Homeowners deserve broader representation when decisions are being made.
Article 4.10 Board Meeting Minutes:
The draft states that “…summary of the minutes shall be available...summary minutes shall be distributed to any Member upon request and upon reimbursement for the cost in making that distribution.”
It’s unclear, but the minutes should be made available online without Members have to request them.
Article 8.1 Amendment Procedures for Bylaws:
The draft language requires that only 50% of the ballots be returned and the amendment must be affirmed by a vote of 51% of those ballots cast. This procedure for amending Bylaws creates too low of a hurdle. Essentially, it only takes 36 out of 140 homeowners to amend the By-Laws.
Any amendment to the By-Laws should require consent of Members comprising more than 50% of the Voting Power of the Association. This is consistent with what is being proposed in the CC&R’s.
CC&R’s
Article 1.27 Member: Article 2 Membership Rights and Privileges:
It’s unclear to me exactly how Timeshare owners are treated with respect to Membership and Membership rights.
Is each partial/fractional Timeshare Owner considered “the record owner of a fee interest in such a unit” and therefore considered a member?
How many Members does the Capri have when you include the Timeshare Units?
Does the Timeshare Association as outlined in Article 1.46 represent all of the Timeshare
Units and Owners collectively and thereby given collective membership and voting rights?
Article 2.8 Storage Spaces:
While it states that “Members are to utilize storage spaces assigned to their unit”, there’s no reference in the CC&R’s which storage spaces are assigned to which units or how they are assigned.
Article 3.8(d) Doors:
Just confirming that Members can replace doors and they do not have to be similar to the original door.
Article 3.8(f) Heating and Air Conditioning:
Why is that Air conditioning units are not permitted in the units?
Article 3.10 Water Damage and Mold:
At this time, I’m most concerned about water damage and mold that the homeowners become responsible that were the result of poor plumbing within the building. For example, a flood on a floor above me was the result of a building plumbing problem. The walls (drywall) were affected. However, at the time it was determined that there wasn’t significant damage. If it later became a mold problem, would the homeowner become responsible for this under the new CC&R’s?
Article 4.6 Rules and Regulations:
“Notification of Proposed Changes” and “Notice of Adoption” of new rules should be spelled out.
Article 4.12 Borrow Money:
The draft states: “any loan in excess of five percent of the annual Assessment shall require Membership Approval.”
What percentage of the Membership is required to approve?
Article 4.16 Limitations on Sale of Property:
What percentage of the Membership is required to approve?
Article 4.17 Limitations on Capital Improvements:
What percentage of the Membership is required to approve?
Article 4.23 Nonprofit Character of the Association:
Does leasing part of the common area to All-Seasons in any way jeopardize the nonprofit characteristic of the Association?
Article 6.1(b) Balcony Doors:
Have members always been responsible for Balcony Doors? How does the Association and Building maintain aesthetic consistency in Balcony doors if homeowners can select different Balcony doors, casings, etc.?
Article 7.8(b) Nuisance, Secondhand Smoke:
Today individuals smoke in their units causing secondhand smoke to flow into other units through the vents. I wouldn’t consider this a mere inconvenience. Is this an instance where the Board could take action?
Article 7.17 Signs…
Currently, we do not have the ability to display signs, billboards or advertising devices from the individual units. The draft changes this to “as allowed by law.” What will be the impact to homeowner’s ability to put up signs, posters, flags, banners, advertisements, etc.? I am opposed to anything that will detract from the beauty of the building.
Article 8.1 Lease Requirements:
Who will enforce the 3 day minimum lease requirement?
Should we add that no Member and/or Property Management Company can lease for an initial term of less than three (3) days?
Article 9 Pets:
Do the articles comply with all City, County or State Laws related to pets?
Article 10.4 Assigned Parking:
A Parking Plan outlining Assigned Spaces by unit should become part of the CC&R’s so it becomes official. This is critical as units are sold and it’s unclear which parking space is assign to a particular unit. A policy should be outlined which addresses the reassignment of parking spaces. Additionally, Article 7.28 of the current CC&R’s state that units 1201, 1206, 1207 and 1208 shall be assigned one additional parking space. This was not carried over to the draft CC&R’s.
Article 12.8 Entry by Member:
I am completely opposed to allowing other Members to enter my unit regardless if the request is made in advance.
Article 17.3 Association not a Security Provider:
The draft states: “However, the Association…shall have no duty to provide any security in the Development.”
I’m concerned that this language eliminates the obligation and responsibility for the Association to provide security officers for the Development.
Article 18.1(c) Common Area Damage – Membership Approval:
Of all of the voting requirements, this is the most stringent. In the event of damage, the Board could determine that the cost to reconstruct is too expensive and a 67% vote of the Membership would be required to approve such reconstruction. This should be lowered to more than 50% of the Voting Members.
Other Items not addressed in the Bylaws or CC&R’s:
1) There should be a Directors “Code of Conduct” and all Directors should be required to sign acknowledging and agreeing to adhere to the document.
2) I did not see the East Parking Lot referenced in the CC&R’s as an asset of the Association.
3) Fines for Renters – while referenced in the CC&R’s, it’s not spelled out whom responsible for enforcing this action.
4) Limitation on Rentals. Now would be a great time to identify the number of rentals in the building and place some kind of limitation. Another HOA that we belong to has done this. The intent to maintain the integrity of the property, particularly for the individuals that are owners and residents of the Capri. An example of a limitation: timeshares and units that are rented cannot exceed 50% of the total units within the building.
5) It should be clearly delineated what responsibility and or liability is being shifted from the
Association to the Member in the Draft CC&R’s. Having to read each line item to determine that is unreasonable, particularly if the Members are not Attorney’s.
PATRICIA EASTON, UNIT 705
At the last meeting there was talk of changing the number of board members from 7 to 5 with 3 being a quorum. I would be against such an action because of the unique make-up of the Capri by the Sea. There will always be a member that represents the Time Shares because they have enough votes to elect at least one member and then Peter can always provide enough votes from his rentals to select a member. That at present works okay because it leaves 3 to5 members to represent the rest of the homeowners. However there could be a situation with 5 that there would only3 present and there could be an only one memberpresent to represent the majority of the homeowners. I don't think that is acceptable.
Patricia Easton
#705
ROY AND MARY JONES, UNIT 1108
We have done a preliminary review of the Governing Documentssent to us. A couple of items are listed below that we feel should be discussed before or at the Town Hall Meeting and possibly included in the revisions.
The Allocation units for assessments need to be clarified as they were in the previous CC&Rs as to how current and/or future charges based upon the clarification are to be handled e.g. A is 100%, B is 150% and C is 275%. It might also eliminate some confusion if the monthly dues were specified via formula in these documents.
There is a need to authorize long term income contracts such as the cell sites on the roof. Recommend 5 yrs. limitation
There is also need to authorize the BOD to authorize lease/rental agreements to get income from the use of common area(Timeshares and Rental Company) for multiple years - recommend 3 year limits.
We’d like to see ownership broken out into two classes: Timeshare and Full time Owners (full time being defined as over 90 days ownership in a calendar year) This would minimize the possibility that a single group of people could control the HOA
- If this is done we can then add to the board of director qualifications adding a requirement that Board members be full time owners.
- An alternative would be to have two directors appointed by the Board; one to represent the Timeshares and the other to represent the renters.
If you have any questions feel free to ask, as we will not be able to attend the meeting.
Roy & Mary Jones #1108
DIANE POLLARD, UNIT 901, 902
Capri by the Sea
Restated Bylaws 4th Draft
October 2014
Summary
As an owner of Units 901 & 902 of Capri by the Sea for more than fifteen (15) years, I take the governing documents very seriously. I have taken much time to thoroughly review the Bylaws and noted several areas of concern. There is a distinct difference between the two classes of membership (actual owners vs. timeshare/part time residents). Ownership has its privileges: 52 weeks a year!
I am concerned that the author of the document (4th draft) did not bother to take the time needed to facilitate review by designing a grid containing the old language and the proposed changes to allow the reader to compare. “Restating” is clearly not the most efficient way to encourage valuable input as it puts strain on the reviewer to have both documents at hand rather than being able to compare the old and recommended language at the same time.
Interestingly, there is no reference to Robert’s Rules of Order, the recognized guide to running meetings fairly and efficiently. Reference to the current revision (11th edition) should be made at the beginning of the document.
Following are the results of my suggested changes/edits:
Article I
1.1. Explanation of California Non Profit Mutual Benefit Corporate Law. What kind of document is this? What does it govern?
1.2. Specificity – The principal office is 4767 Ocean Boulevard – San Diego, CA. Strike line 2 no further information needed.
1.3. Separate time share occupants from unit owners. 125 unit owners 15 interim occupants (“other”)
1.4 66% or 2/3 of the voting power (as stated in previous Bylaws)
1.8 Specificity of Governing Documents (identify)
Article 2
2.1 All meetings should be held on site. The “Owner’s Lounge” was designed for that purpose.
2.2 Convening the Annual Meeting in JULY will allow for greater input from owners who are not full time residents. The second Saturday will not conflict with holiday plans.
2.3 30 day advance notice for everything will provide consistency
2.4 Definition of “prima facie”
Page 2
Article 2 cont’d.
2.6.4 Clarification needed
2.6.5 Clarification needed
2.7 Change 50% to 2/3 or 66%
2.8 30 day notice consistency
25% represents on 35 unit owners (should be clarified)
2.9 Clarify rules of suspension
2.10 A list of owners voting by proxy should be available at all meetings and listed in the meeting minutes.
2.11 Who will be counting the votes? Who is responsible for coordinating the voting process? The language is too vague.
2.12.3 Provide clarification in lay terms
2.12.5 How will the “inspectors” be selected and identified? Will an outside source be responsible for election oversight?
Article 3
3.1 7 board members = 6 unit owners + 1 timeshare representative
3.2 The language eliminates the need for “write in” candidates or nominations from the floor.
3.4.1 Elections should be held at the Annual Meeting by secret ballot (strike “special” meeting).
3.5 Contradiction between 1 and 2 year terms. 2 year terms eliminate the need for an election every year. When terms expire, members can run again.
3.13 Copies of ALL financial reports and meeting minutes should be made available to ALL members of the Association electronically unless otherwise indicated by the member.
3.13.2 Add: (e) Engage the services of an outside independent audit firm annually to audit all financials of the association. ALL unit owners should be advised when the report is available and forwarded copies electronically if requested.
3.14.5 Notification of disciplinary action for any board member should be sent via Certified Mail (return receipt requested).