The Northridge Fact-The Northridge Fact-Finding CommitteeFinding Committee

Second Presentation to the Second Presentation to the property owners of Northridgeproperty owners of Northridge

April 11, 2007April 11, 2007

NormsNorms

►Assume positive intent.Assume positive intent.►Talk about issues, not people.Talk about issues, not people.►Allow for all voices to be heard.Allow for all voices to be heard.►Allow all points of view to be Allow all points of view to be

respectfully heard.respectfully heard.►Disagree respectfully.Disagree respectfully.

AgendaAgenda

►GoalsGoals►Address questions from last Address questions from last

meetingmeeting►Presentation – voting mechanismPresentation – voting mechanism►Perspectives from the Perspectives from the

communitycommunity►Next StepsNext Steps

Goals for this meetingGoals for this meeting

►Address questions from last timeAddress questions from last time►Explain voting mechanism Explain voting mechanism ►Allow members of the community Allow members of the community

to voice their opinions / concernsto voice their opinions / concerns

Who We AreWho We Are

►Michelle Eubank, TeacherMichelle Eubank, Teacher►Tim Perkins, BankerTim Perkins, Banker►Dave Hauger, Air Traffic ControllerDave Hauger, Air Traffic Controller► Janie Perkins, RealtorJanie Perkins, Realtor►Don Blake, Engineering ManagerDon Blake, Engineering Manager

What we heard from youWhat we heard from you (in no particular order) (in no particular order)

► Many great questions.Many great questions.► Check out SB 89/SB100.Check out SB 89/SB100.► Please ensure a fair election.Please ensure a fair election.► How do people who are opposed to an HOA How do people who are opposed to an HOA

get some say in who is elected to the board?get some say in who is elected to the board?► Put a stamp on the ballot for us…please.Put a stamp on the ballot for us…please.► Thanks for running a good (and civil) Thanks for running a good (and civil)

meeting!meeting!

Questions from last Questions from last timetime

Sources on the following pages are identified as follows

[cov] Northridge Covenants

[Bylaws] Northridge By Laws

[SBxx] Senate Bill 89 or 100

[CCIOA] CCIOA documentation

[FFC] Fact Finding Committee Opinion

If there were an HOA in place and If there were an HOA in place and people did not pay their people did not pay their

assessments, who picks up the assessments, who picks up the slack?slack?

The HOA would place a lien on the property of The HOA would place a lien on the property of the non-paying property owner. The assessment the non-paying property owner. The assessment would be collected at time of sale. [CCIOA, Cov]would be collected at time of sale. [CCIOA, Cov]

Interest would accrue at a max rate of 8%/year Interest would accrue at a max rate of 8%/year [covenants] + an HOA could recover legal costs [covenants] + an HOA could recover legal costs on collection of unpaid assessments [CCIOA].on collection of unpaid assessments [CCIOA].

In the mean time, the HOA would have to live In the mean time, the HOA would have to live within it’s means or increase assessments the within it’s means or increase assessments the following year to cover costs. [FFC]following year to cover costs. [FFC]

Is there a cap on HOA dues?Is there a cap on HOA dues?

►There is no lifetime cap on HOA dues.There is no lifetime cap on HOA dues.►The first year of the HOA the The first year of the HOA the

assessment cannot be more than $100 assessment cannot be more than $100 [cov].[cov].

►The assessment can increase up to 20% The assessment can increase up to 20% each year after that with a majority each year after that with a majority vote of the Board of Directors [cov].vote of the Board of Directors [cov].

►Assessment increases greater than 20% Assessment increases greater than 20% require a majority vote of the members require a majority vote of the members [cov].[cov].

Define maintenance of the Define maintenance of the common areascommon areas

►Entrances: watering; mowing, Entrances: watering; mowing, weeding, trimming shrubs.weeding, trimming shrubs.

►Pocket park: dependant on the final Pocket park: dependant on the final design, but to include watering, design, but to include watering, weeding, mowing, trimming.weeding, mowing, trimming.

►Ditch and trails: keeping down Ditch and trails: keeping down weeds on trails, keeping water-weeds on trails, keeping water-flowing in the ditch. flowing in the ditch.

[FFC opinion]

An HOA can’t prevent liability: An HOA can’t prevent liability: we would pay for a lawsuit we would pay for a lawsuit

anyway. If the HOA is sued, anyway. If the HOA is sued, where do they collect funds?where do they collect funds?

►The HOA can create a special The HOA can create a special assessment to pay for legal fees if it assessment to pay for legal fees if it should be sued. The cost would be should be sued. The cost would be spread amongst each of the property spread amongst each of the property owners in Northridge. [CCIOA]owners in Northridge. [CCIOA]

Liability ClarificationLiability Clarification► Liability is a concern with or without an HOA. Liability is a concern with or without an HOA. ► Lawyers we spoke with told us that because the Lawyers we spoke with told us that because the

liability issue is so unclear, any lawsuit regarding liability issue is so unclear, any lawsuit regarding the ditch would likely encompass every the ditch would likely encompass every homeowner and the Town of Erie based on the homeowner and the Town of Erie based on the Ditch Agreement. The outcome is not certain.Ditch Agreement. The outcome is not certain.

► With an HOA, Northridge assumes we are liable With an HOA, Northridge assumes we are liable and the HOA purchases insurance. A lawsuit and the HOA purchases insurance. A lawsuit would likely go the HOA instead of individual would likely go the HOA instead of individual property owners. property owners.

► With or Without an HOA, individuals decide for With or Without an HOA, individuals decide for themselves whether or not to have liability themselves whether or not to have liability coverage. coverage.

[FFC opinion with lawyer input]

Define projects and repairs Define projects and repairs earmarked for Northridge.earmarked for Northridge.

►This group cannot define what those This group cannot define what those projects would be. It would be a projects would be. It would be a negotiation between the HOA and the negotiation between the HOA and the Town of Erie. Examples could include:Town of Erie. Examples could include: Installation of Pocket ParkInstallation of Pocket Park Install / repair culvertsInstall / repair culverts Paving trailsPaving trails Installing new entry signsInstalling new entry signs Etc etcEtc etc

[FFC opinion]

What are the requirements What are the requirements to be a Board member of to be a Board member of

the HOA?the HOA?1)1) Must be a property owner in Northridge Must be a property owner in Northridge

[bylaws].[bylaws].

2)2) Must not have any conflict of interest Must not have any conflict of interest [SB100].[SB100].

Questions regarding the land Questions regarding the land given to the Town of Eriegiven to the Town of Erie

► Result of the Result of the Settlement AgreementSettlement Agreement dated 19 Mar dated 19 Mar 02, detailed in section 4.02, detailed in section 4.

► Size of parcel: 52 AcSize of parcel: 52 Ac► Location of parcel:Location of parcel:

► Worth: need an appraisalWorth: need an appraisal► Would town be willing to transfer to Northridge Would town be willing to transfer to Northridge

HOA: NoHOA: No

Questions the FFC can’t Questions the FFC can’t answeranswer

►Why won’t the Town of Erie put their Why won’t the Town of Erie put their promises in writingpromises in writing

►What is the exact (size and) value of What is the exact (size and) value of the land that was given to the town by the land that was given to the town by M&N as part of the settlement M&N as part of the settlement agreementagreement

► If nothing is done, what then?If nothing is done, what then?

Voting MechanismVoting Mechanism

Voting: clarificationsVoting: clarifications

After your inputs and our After your inputs and our review and discussion, the review and discussion, the

team identified a team identified a shortcoming in the proposal shortcoming in the proposal identified in the last meetingidentified in the last meeting

Originally presentedOriginally presented

►According the Northridge According the Northridge Covenants it takes votes by 50% Covenants it takes votes by 50% + 1 (96) property owners to elect + 1 (96) property owners to elect a Board of Directors when the a Board of Directors when the election is held by mail. election is held by mail.

►The Board can consist of 3-7 The Board can consist of 3-7 members - must be an odd members - must be an odd numbernumber

Originally PresentedOriginally Presented

►Any ballot returned with a vote for one Any ballot returned with a vote for one to seven nominees will be counted to seven nominees will be counted towards the 96 required to be towards the 96 required to be considered a valid election.considered a valid election.

► If 96 property owners do not return a If 96 property owners do not return a ballot with a vote cast, the election is ballot with a vote cast, the election is not valid and a Board of Directors is not not valid and a Board of Directors is not elected.elected.

►Ballots postmarked after the cut-off Ballots postmarked after the cut-off date will not be considered valid.date will not be considered valid.

Originally PresentedOriginally Presented

►The Committee will prepare a ballot The Committee will prepare a ballot and mail one to each property owner.and mail one to each property owner.

►Each property owner has the Each property owner has the opportunity to cast one ballot by mail opportunity to cast one ballot by mail and can elect:and can elect: To cast a vote for nominees for the Board To cast a vote for nominees for the Board

of Directors.of Directors. To not return the ballot.To not return the ballot.

Bylaws – Section 2Bylaws – Section 2

Bylaws – Section 2Bylaws – Section 2

► Each member gets one vote (one vote per Each member gets one vote (one vote per property) property)

► Voting at elections or on other matters shall Voting at elections or on other matters shall be at the annual meeting or at special be at the annual meeting or at special meetings unless the BOD determines that meetings unless the BOD determines that voting for election of the BOD may be voting for election of the BOD may be conducted by mailconducted by mail

► Any action voted on by the members is Any action voted on by the members is passed with a majoritypassed with a majority

► When elections are conducted by mail, When elections are conducted by mail, votes must be cast by at least a majority of votes must be cast by at least a majority of all eligible membersall eligible members

Voting mechanismVoting mechanism

► Break out the question into 2 separate Break out the question into 2 separate votesvotes FIRST: Vote for BOD for HOA (yes or no)FIRST: Vote for BOD for HOA (yes or no) SECOND: If above vote = yes, vote for directors SECOND: If above vote = yes, vote for directors

in a separate electionin a separate election Allows for property owners who are not in favor Allows for property owners who are not in favor

of an HOA to have a say in who is on the board of an HOA to have a say in who is on the board (should the first vote pass)(should the first vote pass)

► For election to be considered valid, a For election to be considered valid, a majority of eligible voters must return a majority of eligible voters must return a vote (= 50%+1 = 96)vote (= 50%+1 = 96)

► The majority of valid ballots received sets The majority of valid ballots received sets the direction for Northridgethe direction for Northridge

The BallotThe Ballot

Anonymity is the goal - Secret ballot election Anonymity is the goal - Secret ballot election [SB89][SB89]

► Ballots will be serialized in a random fashionBallots will be serialized in a random fashion► Serials will be recorded for authenticity Serials will be recorded for authenticity

checkschecks► Ballots and instructions then stuffed into Ballots and instructions then stuffed into

blank envelopesblank envelopes► Envelopes will be labeled with addressesEnvelopes will be labeled with addresses

Ballots will not be able to be traced to an Ballots will not be able to be traced to an address or name [SB89]address or name [SB89]

The BallotThe Ballot

Ballots will be invalid if:Ballots will be invalid if: Serial numbers are received that were not Serial numbers are received that were not

issuedissued Multiple ballots with the same serial Multiple ballots with the same serial

number are received – none of the ballots number are received – none of the ballots for that serial number will be countedfor that serial number will be counted

Both YES and NO are checkedBoth YES and NO are checked Neither YES nor NO are checkedNeither YES nor NO are checked Ballots are postmarked after the cut-off Ballots are postmarked after the cut-off

date (May 14 postage goes up)date (May 14 postage goes up)

The BallotThe Ballot

►Record your ballot Serial number if you Record your ballot Serial number if you wish to confirm your vote’s accuracy wish to confirm your vote’s accuracy when results are posted on the websitewhen results are posted on the website

THE VOTE … a recapTHE VOTE … a recap

►Hold an election for a BOD – Yes or NoHold an election for a BOD – Yes or No►1 vote per property owner1 vote per property owner►96 valid ballots must be received for 96 valid ballots must be received for

election to be validelection to be valid►Majority rules (50 % of valid ballots Majority rules (50 % of valid ballots

+1)+1)►A neutral third party will tally the votesA neutral third party will tally the votes►Volunteer committee to double-check Volunteer committee to double-check

the votethe vote

TimelineTimelineDateDate EventEvent

April 12April 12 Committee mails out ballots to Committee mails out ballots to property ownersproperty owners

May 14May 14 Ballot submission deadlineBallot submission deadline

May 21May 21 Results e-mailed and posted on Results e-mailed and posted on Northridge websiteNorthridge website

tbdtbdFollow-up meeting – should a Follow-up meeting – should a majority of voters decide to elect a majority of voters decide to elect a BOD for HOABOD for HOA

Community Community PerspectivesPerspectives

Community perspectivesCommunity perspectives

► Anyone who would like to will have two Anyone who would like to will have two minutes to speak.minutes to speak.

► One speaker per household.One speaker per household.► Speakers sign up identifying themselves as Speakers sign up identifying themselves as

‘in favor’ or ‘against’ or ‘neutral’ regarding ‘in favor’ or ‘against’ or ‘neutral’ regarding reinstatement of the HOA.reinstatement of the HOA.

► The committee will call people up to speak The committee will call people up to speak in a manner as to allow for balance in in a manner as to allow for balance in expression of opinions.expression of opinions.

► No rebuttals or interruptions, please.No rebuttals or interruptions, please.► Will end at 8:20 so we have time to clean upWill end at 8:20 so we have time to clean up

NormsNorms

►Assume positive intent.Assume positive intent.►Talk about issues, not people.Talk about issues, not people.►Allow for all voices to be heard.Allow for all voices to be heard.►Allow all points of view to be Allow all points of view to be

respectfully heard.respectfully heard.►Disagree respectfully.Disagree respectfully.

More InfoMore Info

►Many documents pertinent to the Many documents pertinent to the Northridge community are available to Northridge community are available to view at the following web addressview at the following web address

www.geocities.com/northridge_eriewww.geocities.com/northridge_erie

In conclusion…In conclusion…

►Look for ballot in the mailLook for ballot in the mail►VOTEVOTE►Expect posting by 21 MayExpect posting by 21 May

►Donations for mailings (ballots are pre-Donations for mailings (ballots are pre-stamped)stamped)