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RULES AND REGULATIONS OF KALA POINT VILLAGE ASSOCIATION

A TIME-SHARE CONDOMINIUM 20 Village Drive

Port Townsend, WA 98368 Phone 360-385-2367

email: [email protected]

Welcome to the Kala Point Village, a self-managed time-share condominium of 38 units and 12 owner shares per unit. Kala Point Village Association is dedicated to creating and preserving a pleasant, tranquil, and safe environment for its owners and guests. To that end, it is important to realize that rules and regulations must be followed by all owners and guests. While some of the rules and regulations are obviously necessary. Please know that each of these rules and regulations have been painstakingly constructed and enacted so that our owners and guests have peace and tranquility in a relaxed, scenic and comfortable setting.

I. General Rules

A. Occupancy 1. The owner of each time share unit is entitled to occupy their unit four (4) times per calendar

year based upon the Scheduled calendar. Each week begins at 4:00 p.m. on Friday and concludes at 11:00 a.m. the following Friday.

If a unit is not vacated by 11:00 a.m. on Friday, there will be an assessment of $150.00 charged to the registered credit card.

a. Registration is from 4:00 to 10:00 P.M. on Friday and 9:00 a.m. to 5:00 p.m. on Saturday. b. Each owner, renter, occupant will register their credit card at the time of registration.

(1) Those arriving outside of office hours must phone ahead to make arrangements to obtain Unit keys, Clubhouse keys, and parking permit.

Owner should have their own gate card (key), guests are given gate opening instructions.

c. If the unit has been rented by the owner, the office must be notified ahead of time as to the name of the renter and to verify the rent has been paid to the owner.

d. If an owner chooses to bank their unit, they must arrange to do so at least two weeks prior to the time they would otherwise use their unit. (See: Section III, Para. B)

No Owners or occupant will make or permit any noise that will disturb or annoy the occupants of any of the condominium units in the development or do or permit any action which will interfere with the rights, comfort or convenience of other Owners/Guests. Quiet hours are 10:00 p.m. to 8:00 a.m.

2. All TVs, Radios and other instruments must be turned low after 10:00 p.m. 3. The weekly cleaning fee for each unit is $55 for units 1,3,5,7,9,11,13,15, and 17. $60 for units

2,4,6,8,10,12,14,16, and 18, $65 for units 19-32, and $70 for units 33-38. The cleaning fee is

mailto:[email protected]

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paid in cash or check to the office when you register.

B. Parking 1. Each unit has one (1) designated parking space. Each Owner/Guest will be given a parking

card to be displayed on the left side of the windshield designating the parking place. This parking pass must also be displayed when parking near the Clubhouse, Tennis Courts and Beach/Picnic area.

2. There are a few un-designated parking spaces in which guests may park. a. If there are no un-designated parking spaces available, guests may park in the spaces

near the clubhouse. b. No motor homes, travel trailers, trucks or boats are to be parked at any time within the

area of the buildings. C. Common Areas

1. No Owner/Guest shall sweep or throw, or permit to be swept or thrown from the doors, windows and patios/balconies any dirt or other substances.

2. All garbage, refuse and recyclables from the condominium units shall be deposited with care in the respective containers, which are conveniently located near each building.

3. Upon vacating the unit all garbage and other refuse shall be removed and placed in the appropriate container located near the building

4. Toilets or other water apparatus in the buildings, shall not be used for any purposes other than those for which they were intended, nor shall any sweepings, rubbish, rags, paper, diapers, feminine products, or any other article be disposed of in same. Any damage resulting from misuse of toilets or other water apparatus shall be paid for by the owner of the time share.

D. Pet Rules and Fees 1. Owners/guests may bring up to two well-behaved domestic household pets, such as dogs

and cats onto the Property. No livestock, poultry, rabbits or other animals whatsoever shall not be allowed or kept in any part of the Condominium..

2. Each Owner/Guest who brings a pet within the condominium property shall indemnify the Association and hold it harmless against any loss or liability or claim of any kind whatsoever arising out of or connected with the keeping of any animal or pet upon the condominium property, including animal attacks or bites or any other incidents in connection therewith of like character.

3. The Board may require the removal of any pet which the Board in the exercise of reasonable discretion finds disturbing Owners or occupants unreasonably, and may exercise this authority for specific pets even though other pets are permitted to remain.

4. There is a registration and cleaning fee of $40 per pet per period of occupancy to reimburse the Association for the additional expense associated with having pets on the property.

5. Pets are not allowed in any Common Area or Limited Common Area unless they are on a leash or are being carried and are being walked. Pets may not be tethered to a stake in the ground or any portion of the Property or left unattended on Limited Common Area decks or patios.

6. At all times, the Common Areas and Limited Common Areas shall be free of pet debris, including food and pet droppings. Pet droppings must be immediately picked up and properly disposed of. Droppings and/or used kitty litter must be placed in plastic bags, tied

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securely and immediately disposed of in outdoor trash dumpsters. .

7. Owners/guests are responsible for cleaning up all pet hair and fur, if needed. Owners/occupants may borrow the manager’s vacuum cleaner. 8. Pets may not be left alone in units unless Owners/guests are certain that the pet will not damage property, bark or make other noise. 9. Pets may not sleep or play on Kala Point Village furniture unless furniture is covered with blankets, sheets or towels that the Owners/guests have brought from home and the furniture will not be damaged. 10.Pets may not be bathed in units. Pets may be bathed outdoors with garden hose. Pets must be dried outdoors. 11. Owners/guests may not use Kala Point Village towels, blankets, dishes or other accessories for pets. All items used for pets must be brought from home, including but not limited to:

a. Collar and leash b. Plastic bags / scoop for droppings c. Waterproof litter box / kitty litter d. Comb/brush for loose hair e. Flea control items f. Pet bed, cage or carrier, for pet to sleep in g. Food and water dishes h. Towel, blanket, sheet, dust rag, etc., as needed i. Pet toys, rawhide chews, scratching post or pad

THANK YOU FOR YOUR COOPERATION WITH THESE RULES. KPVA MANAGERS ARE AUTHORIZED TO REMIND VIOLATORS TO COMPLY WITH PET RULES, AND WILL BILL PET OWNERS FOR EXTRA CLEANING WORK AND / OR DAMAGE CAUSED BY ANIMALS. OWNERS OR GUESTS WITH REPEAT VIOLATIONS WILL LOSE PET PRIVILEGES AT KPVA.

II.Amenities

THE FOLLOWING RULES ARE PROVIDED AND ENFORCED BY KPOA A. Clubhouse, Spa, Sauna and Pool Areas

1. Open to all owners/guests. A key is attached to the unit key for access during open hours: 2. Members and their guests shall register at the Clubhouse desk prior to using the Clubhouse

or pool. Additional rules governing individual facilities are posted at the facilities and are also available from the KPOA Administration Office. a. Consumption of alcoholic beverages on all Common Areas is prohibited to persons under

the age of 21 as prohibited by Washington State Law. 3. A responsible adult (18+) shall supervise individuals under eight (8) years of age while using

the clubhouse. 4. Storage areas and the pool filter room are off limits. 5. A Member shall have a maximum of six guests at any one time while using the clubhouse

facilities. a. All guests except registered house guests and family members shall be accompanied by a

Member. b. No pets shall be brought into the Clubhouse or left tied outside.

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B. Spa 1. Intent: For safety reasons, it is recommended that the spa not he used alone. Long exposure

may result in nausea, dizziness or fainting. Elderly persons, pregnant women, infants and those with health conditions requiring medical care should consult a physician before entering the spa. Water immersion while under the influence of alcohol, narcotics, drugs or medicines may lead to serious health consequences and is not recommended.

a. Maximum spa capacity is 8. (1) No one under 10 years of age is permitted in the spa. (2) A responsible adult (18+) shall supervise any individuals 10-12 years of age while

using the spa. When persons 13 to 17 years of age are using the spa, there shall be at least two people 13 years of age or over present.

C. Year Round Hot Tub and Sauna 1. No one under 18 years of age is permitted to use the sauna.

D. Seasonal Outdoor Swimming Pool (April - October). 1. Intent: KPOA does not employ a life guard. All Members and guests swim at their own risk.

a. Persons using the pool shall familiarize themselves with the posted pool rules and regulations. The KPOA Board has delegated to the General Manager and the Staff the right to refuse admittance to or eject from the premises, any persons failing to comply with any of the facility rules. Persons having infectious or communicable diseases should not use the pool.

b. A responsible adult (18+) shall supervise individuals 12 and under while using the pool and shall be at the pool or pool deck at all times. When persons 13 to 17 years of age are using the pool, there shall be at least two people 13 years of age or over present. (State Law)

c. Showers are required immediately prior to entering the pool or Spa. (State Law) d. Running, diving and "horseplay" in the pool area is prohibited. Throwing of balls or other

objects in the pool is prohibited. e. Supervising adults shall insure that infants using the pools wear waterproof pants with

elastic legs and waistband over their diapers. f. Spitting, spouting water, blowing the nose or discharging bodily wastes in the pool is

prohibited. (1) Cut-offs are not permitted in the pool.

g. Caps, braids or hair tied back is required for shoulder length hair or longer. h. Individuals 5 years of age and older shall use the gender appropriate locker room.

2. Recreation room with Foosball, Table Tennis and Exercise Equipment 3. Meeting room

E. On Grounds 1. Mile long beach and Kala Point’s dock

a. Waterfront, and beach areas are amenities reserved for Members and their guests. Except for family gatherings, group parties shall have prior approval of the KPOA General Manager. b. The boat dock shall be used for attended loading and unloading only. Extended moorage

is prohibited. Buoys are for use on first come - first served basis and for no longer than one consecutive week. Moored craft shall be registered at the Clubhouse. Boats shall not be registered more than once within any fourteen (14) day period Small craft shall not be left tied to the dock, but shall be stored on the small boat storage racks. All small boats stored on the beach shall be registered at the Office and shall display a Kala Point number. Use of dock, buoys, ramp and small boat storage is at the user’s risk with no

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liability to KPOA and/or KPVA. Swimming and the placement of unattended crab pots is prohibited in the vicinity of the dock and boat ramp. The ramp shall be kept clear of vehicles and trailers except during launching and haul out.

c. No overnight camping is permitted on the beach or spit area.

2. Boat or RV storage a. Temporary storage for small boats, RV’s.

3. Small Boat Launch 4. Boat day dock and overnight buoys 5. Club House with Meeting rooms, Foosball, Table Tennis and some exercise Equipment. 6. Tennis Courts a. Court reservations are required. b. Tennis play is limited to 1 1/2 hours when others are waiting. c. Non-marking court shoes are required on tennis courts. d. Use of the courts for activities other than tennis is prohibited. e. A member shall use a maximum of one court at a time.

f. No pets shall be permitted on the tennis courts or tied up outside 7. Pickle ball court 8. Horseshoes

a. Equipment available at KPV Office during office hours. 9. Playground area

10. Picnic tables 11. Charcoal barbecues at unit or gas barbecue at Club House 12. Free Wi-Fi is available in all units and in the Coffee Room in Office Building. 13. Library located in Coffee Room 14. Video and Tape Library in the Office may be Checked out on the “Honor System.”

III.Banked Time

A. PRIME TIME 1. Prime time is May 1 through September 30 and Christmas Eve Day weekend through New

Year’s Day. a. NOTE: KPVA primetime definitions may be different from timeshare trading services such

as RCI and Interval International. B. BANKING TIME

1. There is no charge to bank time. Contact the office for a banking deposit form or write a letter to bank your unit, retaining a copy for your records, or send an email to the office and give the office email address.

2. You may bank any or all of your weeks each year. 3. Time banked may be in the following segments: 7 days Friday to Friday or split into 3 day or

4 day segments. You may not bank less than 3 days. 4. A written or email authorization from the owner is required to bank time, releasing the unit for

each week exchanged. Only written authorization of banked time and confirmed requests for withdrawal of time are valid.

5. You may also bank time using the form on the KPVA website owners page. 6. Upon receipt of written authorization, you will be credited for time banked. 7. There will be no confirmation forwarded for banked time. Your copy of the written authorization

will serve as your receipt. 8. To allow for banking your time, a 2 week notice (14 days) is required.

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a. Less than 14 days may result in your time not being accepted. It will be accepted on short notice only if the time can be used by another owner.

b. If you know you are unable to use your time, please BANK your time so others may use your unit. There are many owners who wish to use time and are not able to because the units have not been banked even though the units are vacant.

9. You may choose to make your own arrangements for filling your banked time. In this case, the owners must make all arrangements including reservations, cancellations, etc. for their guests and renters. A letter or owner-transfer form must accompany the guest or renter upon check-in. No fee is charged as owners do their own paperwork and no arrangements are made through the managers banking system.

a. Cleaning fees and pet fees always apply when the unit is being used. 10. All time banked must be used within two years from the date of the week that it is banked.

This prohibits the accrual of time over several years. 11. Owners are strongly encouraged to keep accurate records of the weeks they have banked

and withdrawn. C. WITHDRAWING TIME

1. All requests for withdrawal are on a first come, first serve basis. Requests for withdrawal may be either written or verbal and made up to one (1 ) year in advance.

2. Owners with prime time banked will have first considerations for prime time withdrawal. 3. Whenever possible, owners will receive a like unit for like unit banked. An additional fee of

$10.00 per withdrawal will be charged for non-townhouse owners specifically requesting a townhouse.

4. Withdrawals out of the bank are for one (1 ) week or 2 half-week segments only. A half-week is one (1 ) week divided into a 3 day and 4 day segment.

5. A maximum of three (3) requests for withdrawal can be accepted and maintained concurrently on the books.

D. CHECK-IN 1. Check-in time begins at 4:00 p.m. 2. The cleaning fee is to be paid for each use and is due upon check-in. 3. NOTE: PLEASE CALL AHEAD IF YOU KNOW THAT YOU WILL BE LATE FOR CHECK-IN.

The managers will unlock the door for you. Repeat offenders of after hours check-in will be charged a $25.00 service fee if you do not make prior arrangements.

E. CHECK-OUT 1. If you have used a full week check out is at 11:00 a.m. on Friday. 2. For half-week you must check out by 11:00 a.m. on the day of departure.

a. If a unit is not vacated by 11:00 a.m. on the day of departure, there will be an assessment of $150.00 charged to the registered credit card.

F. EXCHANGE FEES 1. An exchange fee of $10.00 is to be paid for each confirmed request for withdrawal and is due

upon check-in along with the cleaning fee. G. CANCELLATIONS

1. There is no cancellation fee. You are however, requested to cancel as soon as possible in order to give another owner sufficient notice of a vacancy.

Owners whose accounts are delinquent may not use, rent or reserve banked time until their accounts are current. Notwithstanding the above amended rule, owners who have banked time as of the date of this notice shall be entitled to use their existing banked

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time, based on availability as before. However, when their existing banked time has been used, they will not be able to use or reserve additional banked time until their account are current.

IV.FIRE ARMS

A. Firearms, Fireworks and Explosives 1. Due to fire danger and safety considerations, open display of firearms, fireworks or explosives

are prohibited on any Common Areas and Covered Property (all of Kala Point)

V.FINANCE AND BUDGET A. Policy and Procedures for Collection of Delinquent Accounts

It is the Policy of Kala Point Village Association (KPVA): a. to provide timely notice to members of amounts owing to KPVA; b. to provide for the fair and orderly collection of funds due from members; c. to follow uniform procedures for the prompt collection of all amounts which are

delinquent or past due; and d. to maintain complete and accurate records of all collection efforts. Section C below,

describes general collection guidelines to be followed for the collection of all delinquent member accounts. Section D describes specific procedures and remedies based on the nature of the underlying debt (i.e., operation and capital dues or assessments and late charges).

B. Background

KPVA through its Board of Directors (hereafter referred to as the Board) and employees are obligated to treat all members equally. To conduct its business of managing common property and enforcing rules. KPVA and its Board of Directors have the authority to assess and collect funds from members, to impose late charges, to pursue collection efforts and to suspend member privileges for payment delinquencies.

C. General Collection Guidelines for All Past Due Accounts 1. Delinquent Account: An Owner’s account is delinquent if funds owed to KPVA are not paid

when due. An account is due and payment is to be made according to the specific terms of the underlying obligation. If the delinquent account is not paid in full within the first ten (10) days of the month for which the same are due, the member owing the delinquent account will be a member Not in Good Standing and may also be subject to late fees and other consequences, described below.

2. The Board shall mail or oversee the mailing of periodic and sequential "demand letters" to

each Owner whose account is delinquent. The demand letters shall, when practical, be standardized to assure that similarly situated Owners are treated equally. To facilitate prompt collection, the Board or its agent may personally contact or direct staff to personally contact members with delinquent accounts. Failure to mail one or more demand letters to a delinquent Owner shall not excuse the Owner’s responsibility to pay the delinquent obligation in full.

The Association shall be entitled to recover any costs and reasonable attorneys’ fees incurred in

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connection with the collection of delinquent assessments, whether or not such collection activities result in suit being commenced or prosecuted to judgment. [I have restated consistent with RCW 64.34.364(14).]

A member shall be charged $25.00, or such additional amount as the Board from time to time

may set, for any check which is returned to KPVA for insufficient funds (NSF).

3. The Board or its agent shall maintain complete and accurate records of all delinquent member accounts and related collection efforts. Individual member files shall contain copies of all correspondence related to delinquent account collection actions. The Board or its agent shall be responsible for periodic reporting to the Board concerning collection efforts and the status of delinquent accounts. [I recommend deleting this rule. It is not necessary and is more of an internal board operational policy and could create a basis for Owners to challenge collection actions.]

D. Collection Procedures 1. The Association’s attorney shall pursue all collection and other matters which the Board,

acting through the Treasurer or manager, may from time to time refer to the attorney and shall provide any advice and counsel which the Board may from time to time require.

2. The Treasurer or manager, acting on behalf of the Association, shall pay the Association’s attorney the attorney’s usual and customary charges for time incurred in connection with the attorney’s representation of the Association, together with all costs incurred by the attorney, including but not limited to fees and charges for filing, document recording, service of process, messenger service, court reporters, electronic or computer assisted legal search, photocopies, postage, long distance calls, investigator’s service, credit reports and title reports, promptly upon receipt of the attorney’s monthly invoice.

3. Pursuant to Declaration Section 22.D and RCW 64.34.364(13), there is hereby levied against

any assessment account which is not paid in full as of the last day of the month a late charge in the amount of $25.00, which the Treasurer or manager is authorized and directed to charge to and collect from any delinquent Owner.

4. The Board and manager may agree that all or some of the monthly late charges may be

retained by the manager in recognition of and as compensation for the additional administrative burden imposed in dealing with delinquent accounts.

5. The Treasurer or manager is authorized to send any Owner who is more than thirty (30) days

delinquent in the payment of regular or special assessments or other charges authorized by the Association’s governing documents, a written notice of the delinquency.

6. The Treasurer or manager is authorized to send any Owner who is more than sixty (60) days

delinquent in the payment of regular or special assessments or other charges authorized by the Association’s governing documents, a written notice that if the account is not paid within ten (10) days it may be turned over to the Association’s attorney for collection, including filing a lien, and that the Owner will be liable for payment for the minimum charge imposed by the Association’s attorney to cover fees and costs charged to the Association.

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7. The Treasurer or manager is authorized to send any Owner whose account remains

delinquent more than ten (10) days after sending the notice in the preceding paragraph to the Association’s attorney for collection.

8. The Treasurer or manager is directed to consult with the Association’s attorney and turn over

for collection immediately any account where the Owner files or is the subject of a petition for relief in bankruptcy or a lender has commenced any action for foreclosure of its lien.

9. The following policies shall apply to all delinquent accounts turned over to the Association’s

attorney for collection: a. All contacts with a delinquent Owner shall be handled through the Association’s attorney. Neither the treasurer or manager nor any Association officer or director shall have authority to settle the collection of the account directly with an Owner after it has been turned over to the Association’s attorney unless the Association’s attorney is present or has consented to the contact. b. Unless otherwise specified, all sums collected on a delinquent account should be remitted to the Association in care of the Association’s attorney until the account has been brought current. Except as otherwise provided in the Declaration, the Association reserves the right to apply the funds to the delinquent balance at its sole discretion. c. Pursuant to Declaration Section 22.B, if any assessment remains delinquent for more than thirty (30) days, the Owner may be required, from time to time, to make and maintain a security deposit not in excess of three (3) months monthly assessments. However, the Association’s Treasurer, manager and attorney are granted the discretion to waive this Assessment deposit in whole or in part under circumstances that they deem appropriate. d. Interest at 12% per annum shall be charged and collected on all delinquent assessment amounts, including but not limited to late charges and legal charges pursuant to Declaration Section 22.D and RCW 64.34.364(13). However, the Association’s Treasurer or manager and attorney are granted the discretion to waive this requirement in whole or in part under circumstances that they deem to be appropriate.

10.The following policies shall apply to all delinquent accounts turned over to the Association’s

attorney for collection: a. All contacts with a delinquent Owner shall be handled through the Association’s attorney. Neither the treasurer or manager nor any Association officer or director shall have authority to settle the collection of the account directly with an Owner after it has been turned over to the Association’s attorney unless the Association’s attorney is present or has consented to the contact. b.Unless otherwise specified, all sums collected on a delinquent account should be remitted to the Association in care of the Association’s attorney until the account has been brought current. Except as otherwise provided in the Declaration, the Association reserves the right to apply the funds to the delinquent balance at its sole discretion. c. Pursuant to Declaration Section 22.B, if any assessment remains delinquent for more than thirty (30) days, the Owner may be required, from time to time, to make and maintain a security deposit not in excess of three (3) months monthly assessments. However, the Association’s Treasurer, manager and attorney are granted the discretion to waive this Assessment deposit in whole or in part under circumstances that they deem appropriate.

Comment [PM1]: I left out the option to

terminate utilities during a delinquent owner’s period of occupancy due to the administrative burden of

tracking the occupancy periods and risk that the

utilities won’t be restored when a new owner’s

occupancy period starts. If the Association would

like utility termination as an option, let us know.

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d. Interest at 12% per annum shall be charged and collected on all delinquent assessment amounts, including but not limited to late charges and legal charges pursuant to Declaration Section 22.D and RCW 64.34.364(13). However, the Association’s Treasurer or manager and attorney are granted the discretion to waive this requirement in whole or in part under circumstances that they deem to be appropriate.

11.The Association’s attorney’s legal fee shall be assessed against each delinquent account and its Owner (including repeat collections) at the time the account is turned over to the Association’s attorney for collection. All legal fees, costs and expenses incurred in the collection of a delinquent account shall be assessed against the delinquent Unit and Owner shall be collectible as an assessment as provided in Declaration Section 22.C and RCW 64.34.364(14).

E. Enforcement Procedures

1. Authority The Board of Directors is authorized and empowered to investigate, hear and determine all complaints concerning violations by any Owner, tenant or occupant of the Declaration, Bylaws, rules, regulations or enforcement procedures ("Governing Documents") or of any decision of the Board made as provided in the Governing Documents. The Board is further authorized and empowered to impose a fine as may be allowed herein in an amount not to exceed the maximum rate established by resolution of the Board on any person whom it finds to have violated the Governing Documents.

2. Informal Dispute Resolution Preferred

It is the intent of the Association that an informal process be encouraged prior to the initiation of a formal complaint against an Owner, tenant or other occupant of a Unit. To that end, any Owner, tenant, occupant or employee or agent of the Association has the authority to request that an Owner, tenant or occupant of any Unit cease or correct any act or perform any omission which appears to be in violation of the Governing Documents or of any decision of the Board made as provided in the Governing Documents. The informal request should be made, either verbally or in writing, prior to initiation of the formal complaint process. Nothing in this paragraph should be construed as a requirement or condition to making a complaint.

3. Complaint

If the dispute or violation is not being resolved informally then a complaint may be filed by any Unit Owner, tenant or occupant, including a member of the Board, or may be filed by an employee or agent of the Association (referred to as the "complainant"). The complaint shall contain a statement of the problem necessitating the complaint setting out in simple and concise language the acts or omissions with which the alleged violator (referred to as the "respondent") is charged. The complaint should identify the specific provisions of the Governing Documents or decision of the Board which the respondent is alleged to have violated. The complaint shall state as many of the specifics as are available regarding time, date, location, nature of violation, persons involved, etc. The complaint should also state the efforts, if any, which were made to resolve the matter informally. The NOTICE OF WARNING, INFRACTION AND/OR FINE form, attached hereto, may serve as the complaint.

4. Service of Complaint

Comment [PM2]: I left out the option to terminate utilities during a delinquent owner’s period

of occupancy due to the administrative burden of





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Within ten (10) days of receipt of the complaint, the Association shall cause the NOTICE OF WARNING, INFRACTION AND/OR FINE form to be served upon the respondent, at the respondent's address of record, if an Owner, and at the Unit address if a non-Owner occupant. Service of the NOTICE OF WARNING, INFRACTION AND/OR FINE shall be by leaving same with the respondent personally, by leaving same with a person of suitable age and discretion at the respondent's residence or by first class mail.

5. Notice of Respondent's Rights and Hearing

If an appeal hearing has been requested, the Association shall, at least fifteen (15) days prior to any such hearing date, serve upon the respondent and complainant a Notice of Rights and Hearing, which shall be in substantially the form attached hereto but may contain additional information as the Board may deem to be appropriate from time to time.

6. Default

Failure of one party to appear at a scheduled hearing, where that party prior to the hearing has failed to show good cause why the hearing should be rescheduled, does not preclude the Board from proceeding with the hearing, receiving evidence from and hearing arguments by the other party and making a decision in the matter. Upon failure of the complainant to appear, the Board may, in its discretion, drop the matter.

7. Hearing Procedure

a. Conduct of Hearing The hearing shall be heard by the Board of Directors sitting as a Hearing Board. The respondent shall appear in person or by a duly authorized representative. The President, or in his or her absence the Vice President, shall preside over the conduct of the hearing and shall make any necessary evidentiary rulings. The hearing shall be informal. At the beginning of the hearing the President shall explain the rules and procedures by which the hearing is to be conducted.

b. Order of Proceedings

The order of proceedings shall be as follows: i. Each party to the proceeding is entitled to make an opening statement. ii. Each party is entitled to produce evidence, witnesses and testimony. The other

parties are entitled to cross-examine any witnesses and the opposing party. iii. Each party is entitled to make a closing statement. iv. Any member of the Board may question any party or witness. The Board

members may, on their own motion, call additional witnesses or secure tangible evidence.

v. Each party has the right to representation by counsel at his or her own expense. vi. Either party or the Board may cause the hearing to be transcribed at his, her or

their own expense.

c. Rules of Evidence Any relevant evidence which is not privileged is admissible regardless of whether the evidence is hearsay or otherwise inadmissible in a court of law.

d. Assurance of Voluntary Compliance

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The Board in its discretion, in lieu of or in addition to calling the hearing, may accept a written Assurance of Voluntary Compliance from any respondent. Giving an Assurance does not constitute an admission that a violation has taken place. The Assurance may include a stipulation for payment by respondent to the complainant and/or the Association. From time to time, a person who has made an Assurance of Voluntary Compliance shall provide all information the Board reasonably requests to determine whether the respondent is in compliance with the Assurance. The Board is not precluded from further action by its acceptance of an Assurance of Voluntary Compliance in the event that the respondent violates the terms of that Assurance.

e. Decision and Order

i. As soon as possible, but in no case more than ten (10) days after the close of the hearing, the Board shall meet in executive session to deliberate and reach a decision. The decision of the Board shall be in writing and, if a violation is found, shall state the particular violation(s) found.

ii. Upon a decision that a violation has occurred, the Board may order that the

respondent shall do or refrain from doing any act necessary to cause the respondent to comply with the provisions of the Governing Documents and/or any decision of the Board. The order of the Board shall become effective ten (10) days after it is served on the respondent in the manner provided above, unless the Board otherwise provides in its order.

iii. The Board may provide in its order for the imposition of a reasonable fine not to

exceed the maximum amounts set from time to time by resolution of the Board. The fine may include a daily fine in the event that the respondent does not comply with the order of the Board, including the payment of the fine, within the allotted time. Any fine or charge so imposed by the Board shall be the personal obligation of the person against whom it is imposed, shall constitute a lien upon the Unit owned or occupied by that person, and may be collected in the manner provided in the Declaration in same manner as for assessments.

iv. The decision of the Board shall be served on each party to the matter forthwith in

the manner provided above. A copy of the decision and order shall be included in the books of the Association.

8. Judicial Enforcement

Failure to comply with a decision of the Hearing Board following notice of a violation and an opportunity for a hearing, shall be grounds for an action by the Association to recover sums due for damages, which shall include any fines levied by the Hearing Board and any costs incurred by the Association in connection with the proceedings before the Hearing Board, or for injunctive relief, or both, maintainable by the Association. In any action brought as provided in this Section, the prevailing party shall be entitled to recover as part of its judgment a reasonable sum for attorney fees reasonably incurred in connection with the action, in addition to its expenses and taxable costs.

F. Fine Schedule

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1. The Board will enforce the following fine schedule for violations of the Association’s Governing Documents, including, but not limited to, the Covenants, Bylaws, Rules & Regulations, and any decision of the Board: a. 1st violation: Warning and/or up to $50 fine, unless otherwise provided in specific Rule. b. 2nd violation of the same provision: Fine up to $100, at the Board’s discretion, unless

otherwise provided in specific Rule. c. 3rd or more violations of the same provision: Fine up to $200, at the Board’s discretion,

unless otherwise provided in specific Rule. d. Continuing Violations. Each and every day a violation continues shall be considered as a

separate offense and will be subject to an additional fine of $10 per day, beginning ten (10) days after the Owner is notified of the fine until the violation is corrected.

2. Late charges will be imposed for any fine delinquent over thirty (30) days.

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NOTICE OF WARNING, INFRACTION AND/OR FINE

TO: __________________, respondent UNIT: ________________ This is to notify the respondent that the Association has received a complaint against the respondent concerning violation of the Governing Documents of the Association as follows (state with specificity the nature of the violation and the pertinent rule, regulation, etc.):

__________________________________________________________

__________________________________________________________

__________________________________________________________ Check one or more of the following, as applicable: [ ] This is your Notice of Warning. You have _______ days to either correct the infraction and/or remove the violating condition. If you fail to do so, then the Association will proceed with formal enforcement. [ ] The respondent has previously been sent a Notice of Warning concerning the above stated infraction but has failed to correct the situation. [ ] The respondent is assessed a fine of $_________ under the authority of the most recent resolution of the Board for fines to be imposed in the case of infractions. The fine [ ] is [ ] is not a continuing fine. (A continuing fine is one that can be imposed in the above stated amount for each and every day, month or other specified time period that the infraction which is the subject of this Notice continues.) [ ] Imposition of the above fine is suspended for _______ days (no less than five (5) days). If the infraction is corrected within that time, then the fine will be rescinded.

[ ] The Board has set this matter for a hearing. See accompanying Notice of Rights and Hearing Before Condominium Board. At the hearing, the Board will decide the validity of the infraction(s) and fine(s) to be imposed, if any. Right to Appeal If this is other than a Notice of Warning, you have the right to appeal the action taken above to the Association's Board of Directors. In such case, imposition of any fine imposed will be suspended pending determination of the appeal by the Board. If you wish to appeal, you must deliver written notice of the same to the Association’s Secretary or the Association’s Manager within ten (10) days after service or delivery of this Notice to the respondent. The request for appeal will not be deemed to have been delivered until actual receipt by the Association’s Secretary or the Association’s Manager. Signed: ________________________ Date:_______________ Title: _________________________

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NOTICE OF RIGHTS AND HEARING BEFORE CONDOMINIUM BOARD RESPONDENT: __________________________________ COMPLAINANT: _________________________________ Please be notified that a hearing will be conducted before the Kala Point Village Association Board of Directors at ______ O' clock ___.m. on _______day, ____________, 20__ upon the charges made by complainant in the complaint attached to this Notice. In the event that you are not present at the hearing a decision may be made against you. You have the right to be present at the hearing and to be represented by counsel at your own expense. You are entitled to present any relevant witnesses or other evidence and will be given full opportunity to cross-examine any witnesses presented by the other party. If any of the parties can show good cause as to why they cannot attend the hearing on the above date, they must submit a written request to the Condominium Board at least forty-eight (48) hours prior to the scheduled hearing date. Failure to appear or to obtain an order rescheduling the hearing will constitute a "default" as per the attached enforcement procedures and the Condominium Board may proceed with the hearing. The respondent may admit to the complaint in whole or in part. In that event, the Condominium Board may hold a hearing as to any mitigating circumstances or to determine the appropriate penalty or may make a determination to waive the hearing and simply impose a penalty, if any. DATED: ____________________ ________________________________ Secretary or Association Manager

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V.FINANCE AND BUDGET

A. Policy and Procedures for Collection of Delinquent Accounts It is the Policy of Kala Point Village Association (KPVA):

a. to provide timely notice to members of amounts owing to KPVA; b. to provide for the fair and orderly collection of funds due from members; c. to follow uniform procedures for the prompt collection of all amounts which are

delinquent or past due; and d. to maintain complete and accurate records of all collection efforts. Section C below,

describes general collection guidelines to be followed for the collection of all delinquent member accounts. Section D describes specific procedures and remedies based on the nature of the underlying debt (i.e., operation and capital dues or assessments and late charges).

D. Background

KPVA through its Board of Directors (hereafter referred to as the Board) and employees are obligated to treat all members equally. To conduct its business of managing common property and enforcing rules. KPVA and its Board of Directors have the authority to assess and collect funds from members, to impose late charges, to pursue collection efforts and to suspend member privileges for payment delinquencies.

E. General Collection Guidelines for All Past Due Accounts 1. Delinquent Account: An Owner’s account is delinquent if funds owed to KPVA are not paid

when due. An account is due and payment is to be made according to the specific terms of the underlying obligation. If the delinquent account is not paid in full within the first ten (10) days of the month for which the same are due, the member owing the delinquent account will be a member Not in Good Standing and may also be subject to late fees and other consequences, described below.

2. The Board shall mail or oversee the mailing of periodic and sequential "demand letters" to

each Owner whose account is delinquent. The demand letters shall, when practical, be standardized to assure that similarly situated Owners are treated equally. To facilitate prompt collection, the Board or its agent may personally contact or direct staff to personally contact members with delinquent accounts. Failure to mail one or more demand letters to a delinquent Owner shall not excuse the Owner’s responsibility to pay the delinquent obligation in full.

The Association shall be entitled to recover any costs and reasonable attorneys’ fees incurred in

connection with the collection of delinquent assessments, whether or not such collection activities result in suit being commenced or prosecuted to judgment. [I have restated consistent with RCW 64.34.364(14).] [I’ve deleted the previous paragraph pertaining to payment plans. Under the language stated, all Owners would be able to argue that they are entitled to a payment plan allowing them to repay assessments over a six month period. Owners already have a payment plan which provides for them to pay assessments as they come due. Any variations from that should be taken on a case by case bases. Adding default payment plan provisions in the rules will result in less Owners paying on time, larger delinquencies and potential issues once the Association decides to proceed with a

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collection action.]

A member shall be charged $25.00, or such additional amount as the Board from time to time may set, for any check which is returned to KPVA for insufficient funds (NSF).

3. The Board or its agent shall maintain complete and accurate records of all delinquent member accounts and related collection efforts. Individual member files shall contain copies of all correspondence related to delinquent account collection actions. The Board or its agent shall be responsible for periodic reporting to the Board concerning collection efforts and the status of delinquent accounts. [I recommend deleting this rule. It is not necessary and is more of an internal board operational policy and could create a basis for Owners to challenge collection actions.]

D. Collection Procedures 12.The Association’s attorney shall pursue all collection and other matters which the Board,

acting through the Treasurer or manager, may from time to time refer to the attorney and shall provide any advice and counsel which the Board may from time to time require.

13.The Treasurer or manager, acting on behalf of the Association, shall pay the Association’s attorney the attorney’s usual and customary charges for time incurred in connection with the attorney’s representation of the Association, together with all costs incurred by the attorney, including but not limited to fees and charges for filing, document recording, service of process, messenger service, court reporters, electronic or computer assisted legal search, photocopies, postage, long distance calls, investigator’s service, credit reports and title reports, promptly upon receipt of the attorney’s monthly invoice.

14.Pursuant to Declaration Section 22.D and RCW 64.34.364(13), there is hereby levied against

any assessment account which is not paid in full as of the last day of the month a late charge in the amount of $25.00, which the Treasurer or manager is authorized and directed to charge to and collect from any delinquent Owner.

15.The Board and manager may agree that all or some of the monthly late charges may be

retained by the manager in recognition of and as compensation for the additional administrative burden imposed in dealing with delinquent accounts.

16.The Treasurer or manager is authorized to send any Owner who is more than thirty (30) days

delinquent in the payment of regular or special assessments or other charges authorized by the Association’s governing documents, a written notice of the delinquency.

17.The Treasurer or manager is authorized to send any Owner who is more than sixty (60) days

delinquent in the payment of regular or special assessments or other charges authorized by the Association’s governing documents, a written notice that if the account is not paid within ten (10) days it may be turned over to the Association’s attorney for collection, including filing a lien, and that the Owner will be liable for payment for the minimum charge imposed by the Association’s attorney to cover fees and costs charged to the Association.

18.The Treasurer or manager is authorized to send any Owner whose account remains

delinquent more than ten (10) days after sending the notice in the preceding paragraph to the

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Association’s attorney for collection.

19.The Treasurer or manager is directed to consult with the Association’s attorney and turn over for collection immediately any account where the Owner files or is the subject of a petition for relief in bankruptcy or a lender has commenced any action for foreclosure of its lien.

20.The following policies shall apply to all delinquent accounts turned over to the Association’s

attorney for collection: a.All contacts with a delinquent Owner shall be handled through the Association’s attorney. Neither the treasurer or manager nor any Association officer or director shall have authority to settle the collection of the account directly with an Owner after it has been turned over to the Association’s attorney unless the Association’s attorney is present or has consented to the contact. b.Unless otherwise specified, all sums collected on a delinquent account should be remitted to the Association in care of the Association’s attorney until the account has been brought current. Except as otherwise provided in the Declaration, the Association reserves the right to apply the funds to the delinquent balance at its sole discretion. c.Pursuant to Declaration Section 22.B, if any assessment remains delinquent for more than thirty (30) days, the Owner may be required, from time to time, to make and maintain a security deposit not in excess of three (3) months monthly assessments. However, the Association’s Treasurer, manager and attorney are granted the discretion to waive this Assessment deposit in whole or in part under circumstances that they deem appropriate. d.Interest at 12% per annum shall be charged and collected on all delinquent assessment amounts, including but not limited to late charges and legal charges pursuant to Declaration Section 22.D and RCW 64.34.364(13). However, the Association’s Treasurer or manager and attorney are granted the discretion to waive this requirement in whole or in part under circumstances that they deem to be appropriate.

The Association’s attorney’s legal fee shall be assessed against each delinquent account and its Owner (including repeat collections) at the time the account is turned over to the Association’s attorney for collection. All legal fees, costs and expenses incurred in the collection of a delinquent account shall be assessed against the delinquent Unit and Owner shall be collectible as an assessment as provided in Declaration Section 22.C and RCW 64.34.364(14).

Comment [PM3]: I left out the option to

terminate utilities during a delinquent owner’s period

of occupancy due to the administrative burden of





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