August 26, 2014
Enclosed, please find the DRAFT Restated Declaration of Covenants, Conditions and Restrictions (“CC&Rs”) and DRAFT Restated Bylaws for the Capri by the Sea Condominium Owners Association (“Association”). As you may know, the Board of Directors and CC&R Committee have been working tirelessly to review the Association’s governing documents, which have not been fully updated since 1979. The new CC&Rs and Bylaws will address current legal issues and bring the Association’s governing documents up to date with the Davis Stirling Act.
At this time, the Board of Directors requests that each Homeowner take time to review the enclosed DRAFT documents and provide comments and feedback. We encourage your comments in any form that is convenient. You may submit comments or questions in email to firstname.lastname@example.org or in writing to the Capri Management Office (address below). In addition, a Town Hall Meeting that will be held Saturday, September 20, 2014 at 9AM at the Capri by the Sea Homeowners Lounge.
For those who would like to compare the existing and DRAFT documents side-by-side, current governing documents are available on the Capri website at www.capribythesea.com or, upon request, in the Management office located in the Capri by the Sea lobby.
We have provided bullet points addressing the major updates to the Bylaws and CC&Rs. The new section numbers are also listed to assist you in reviewing the DRAFT documents. Please note that the list below is not an exhaustive list of changes, but contains the “highlights” of the revised documents.
- Section 1.1: Adds the purpose of the Association;
- Section 2.2: Indicates that the annual meeting is to be held in the month of November;
- Section 2.10: Simplifies the language for voting by proxy;
- Section 2.12: Simplifies the procedure for “voting by ballot without a membership meeting”, to be consistent with current law;
- Section 3.1: Changes the number of Directors sitting on the Board from three (3) to seven (7) (which codifies is the number the Association has been utilizing);
- Section 3.2: Adds procedures for the nomination of Board of Director candidates;
- Section 3.3: Adds qualifications to be elected to the Board of Directors;
- Section 3.4: Removes cumulative voting for Board of Director positions. Each Unit is entitled to one (1) vote per Unit, per Board position to be filled;
- Section 3.5: Changes term of office for Directors from one (1) year concurrent terms to staggered two (2) year terms;
- Section 3.7: Clarifies procedure for removal of Directors and reasons for removal;
- Section 3.8: Adds a procedure for resignation of Directors;
- Section 3.9: Adds a requirement to return all Association materials upon resignation of Directors;
- Section 3.12: Expands upon the enumerated powers of the Board of Directors, to be consistent with current laws;
- Section 3.13: Adds a section regarding limitations on Board of Directors powers;
- Section 3.14: Revises and restates requirements to clarify requirements for preparation, reporting and review of financial documentation, to comply with current laws;
- Section 3.15: Adds a section regarding procedures for disciplinary actions against Owners;
- Section 3.16: Adds a section regarding expending reserve funds;
- Section 4.1: Changes regular meeting frequency from monthly to quarterly;
- Section 4.3: Changes notice requirements in order to comply with current laws;
- Section 4.5: Adds a section regarding emergency Board meetings;
- Section 4.10: Adds a section regarding availability of meeting minutes to Owners;
- Article 5: Changes “Chief Financial Officer” to “Treasurer”;
- Section 5.4: Adds a section regarding “Designation of Officers’ Duties”;
- Section 5.6: Adds a section regarding “Return of Association Materials by Officers”;
- Section 5.8: Adds a section regarding “Limitations on Officers’ Powers”;
- Section 6.3: Adds a section regarding “Denial of Request for Membership Register”;
- Section 6.5: Adds a section regarding “Removal of Records”;
- Article 7: Expands on and clarifies Section 9.2 of the current Bylaws in order to comply with current law;
- Removes Article 10 from the current Bylaws, as the language is either incorporated elsewhere in the Restated Bylaws, or is unnecessary.
- Article 1: Adds and revises definitions. Of particular interest are the addition of definitions for Common Area, Exclusive Use Common Area, Eligible Lender, Lender, Percentage Interest, Quorum, Reserves, Rules and Regulations, Timeshare Association, and Timeshare Units;
- Section 2.1: More fully explains and defines Membership;
- Section 2.3: Adds section regarding voting rights of Members;
- Article 3: Most of this Article has been added to clarify the obligations of the Membership and comply with current law;
- Section 3.8: Adds a list of items for which the Membership has the duty to maintain, repair and replace;
- Section 3.10: Adds a section regarding Member duties for water damage and mold issues;
- Section 3.15: Adds a section regarding Member liability for the actions of guest;
- Article 4: Revises and clarifies the duties of the Association. Of particular interest is the duty to treat for termites/pests, create and amend Rules and Regulations, and enter into vendor contracts;
- Article 5: Clarifies the procedure to apply for architectural alterations;
- Article 6: Adds obligations for maintenance and repairs to balconies and restrictions regarding the use of balconies;
- Article 7: Revises and clarifies “General Restrictions” to comply with current law. Of particular interest are sections regarding occupancy restrictions, grandfathered occupancy, quiet enjoyment, and hiring of association employees;
- Article 8: Adds Article pertaining to Limitations on Leases and Ownership;
- Article 9: Adds Article pertaining to restrictions on pets;
- Article 10: Adds Article clarifying restrictions on vehicles and parking;
- Article 11: Adds Article regarding procedure for enforcing the governing documents;
- Article 12: Clarifies circumstances in which the Association may enter Units;
- Article 13: Revises and clarifies descriptions of various types of Assessments to comply with current law;
- Article 14: Revises Article for enforcement of Assessments in order to comply with current law;
- Article 15: Adds various types of insurance and endorsements to be obtained by the Association. Also adds section regarding specific types of insurance to be carried by the Members;
- Article 16: Revises Article to comply with current law;
- Article 17: Adds Article limiting the Association’s liability;
- Article 18: Clarifies and revises procedure for repair to and reconstruction of improvements by Association;
- Article 19: Clarifies Article to comply with current law;
- Article 20: Reduces percentage required to amend future CC&Rs from sixty six and two-thirds percent (66 2/3%) to fifty percent (50%).
It is important to note that after the Town Hall Meeting on September 20th, the Board of Directors will consider all Homeowner feedback to further revise the enclosed DRAFT documents. Each Homeowner will then receive the final version of the Restated CC&Rs and Bylaws along with a ballot to cast a vote either in favor of or against adopting the Restated CC&Rs and Bylaws as the governing documents for the Association. The current governing documents require a 66 and 2/3 affirmative vote to approve the new documents. It is very important for all Homeowners to weigh in on this important matter.
The Board of Directors realizes this process can be daunting. We appreciate your comments and time in adopting the new governing documents in an efficient manner. Please feel free to contact me directly with any questions via telephone at (858) 270-6878 or via email at email@example.com.