3945 HERITAGE ROAD LAKE NACIMIENTO PASO ROBLES, CA

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FAX: (805) 238-3430
GATE HOUSE: (805) 227-6560
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3945 HERITAGE ROAD
LAKE NACIMIENTO
PASO ROBLES, CA 93446
May 30, 2014
Dear Heritage Ranch Property Owner:
The summary proforma operating budget for fiscal year 2014/2015 is submitted as required by California Civil Code
Section 1365 for your review. The Finance Committee assists the Board of Directors in adopting the final budget
based on examination of the last two years expenditure history of revenue and expenses.
The Board of Directors retains a professional under contract to conduct a physical inspection every three years of
all property owned by the Heritage Ranch Owners' Association (HROA), and advise them as to the Association's
reserves pursuant to Section 1365.5 of the Civil Code. A detailed report is produced as part of that process. The
last physical inspection was done in March 2013. The Association's reserves are reviewed annually by the Board of
Directors and a summary is provided to all owners which is included in with this budget. Approximately 70% of the
overall reserve budget is for road repairs and road maintenance.
The Board of Directors approved the pro forma operating budget (including the estimated operating capital and
reserve expenditures) on April 11, 2014 for implementation on July 1, 2014.
The 2014/2015 assessment amount remains the same at $255.00lquarter ($85.00lmonth).
If you have property in Tract 447 the special assessment trash fee remains the same at $33.00/quarter
($11.00/month).
As provided by law, members may examine the complete pro forma operating budget at the Association Office, or
may request a copy to be mailed by first class mail within five (5) days of a request. All accounting books and
records of the Association are open to inspection at all times during reasonable business hours, exercisable on ten
(10) days prior written request. The minutes (or a draft of minutes) of any meeting of the Board of Directors, other
than executive session, are available for review within thirty (30) days of the meeting. The minutes are available to
be mailed to any member of the Association upon written request and upon reimbursement of the Association's cost
for making the distribution.
Your comments are welcome. If you have any questions regarding the enclosed, please contact the Association
Office for assistance.
Sincerely,
Beverly Bonnie Forcey
President
Following is a summary of the pro forma operating budget. The complete pro forma operating budget
is available at the business office of the Association and copies will be provided upon request and at
the expense of the Association. If any owner requests that a copy of the complete pro forma operating
budget be mailed to the owner, the Association shall provide the copy to the owner by first-class
United States mail at the expense of the Association and delivered within five (5) days. (Civil Code
1365(d))
SUMMARY PRO FORMA OPERATING BUDGET
FISCAL YEAR JULY 1,2014 THROUGH JUNE 30, 2015
REVENUE
Assessment Revenue ($85.00/month per lot x 2,092 lots)
Association Operations.......................................$1,560,840.00
Reserve Contribution..........................................$ 568,000.00
Capital Contribution...........................................$
5,000.00
TOTAL ASSESSMENT REVENUE..................................$2,133,840.00
Other Income
Co-Owner Assessment ........................................ $ 10,000
Campground ..................................................... $15,000
Marina............................................................. $17,500
Equestrian Center .............................................. $42,900
Equestrian Center Reserve Contribution................. $ 1,000
80-Boat Slips ...................................................... $37,140
80-Boat Slip Reserve Contribution .......................... $ 22,860
Mussel Inspections ...................................................... $12,675
20-Boat Slips............................................................... $ 3,950
20-Boat Slip Reserve Contribution.......................... $ 4,050
Late Charges .................................................... $20,000
Association Fees ............................................... $25,000
RV Trash Fees .................................................. $26,532
Mowing and Chipping Fees.................................. $ 3,000
Traffic and AECC Fines ....................................... $45,000
Miscellaneous Revenue ....................................... $ 35,000
Washer/Dryer Revenue........................................ $ 3,000
Interest Income (Operations Accounts)................... $ 3,000
Other Income.................................................... $
0
TOTAL OTHER INCOME..............................................
TOTAL REVENUE
EXPENSES
Gatehouse/Security Department
Gatehouse Labor................................................$234,400
Security Labor....................................................$239,500
Payroll Taxes....................................................$ 41,657
Group Insurance................................................$ 42,696
Worker's Compensation Insurance.........................$ 40,447
Electricity..........................................................$ 6,000
Fuel.................................................................$ 25,500
Supplies...........................................................$ 6,000
Labels, Stickers and Identification Cards..................$ 3,000
Small Tools and Equipment..................................$ 3,000
2
$ 327,607.00
$2,461 ,447.00
$ 1,000
Uniforms
Telephone and Modem (& Handheld Phone)............$ 8,500
Facility Repairs and Maintenance..........................$ 3,500
1,500
Water and Sewer................................................$
0
Other...............................................................$
TOTAL GATEHOUSE/SECURITY EXPENSE.....................$ 656,700.00
Maintenance Department
Labor............................................................... $204,000
Payroll Taxes.................................................... $ 16,313
Group Insurance................................................ $ 34,728
Worker's Compensation Insurance......................... $ 16,952
Electricity.......................................................... $ 3,000
400
Propane........................................................... $
12,000
Fuel................................................................. $
Equipment Repairs and Maintenance...................... $ 5,000
Landscaping...................................................... $ 7,500
Road Repairs and Maintenance (& Sweeping).......... $ 7,000
Vehicle Repairs and Maintenance.......................... $ 12,000
General Repairs and Supplies............................... $ 24,000
Small Tools and Equipment.................................. $ 1,000
500
Uniforms.......................................................... $
Telephone (& Handheld Phone)............................. $ 4,500
Trash Collection................................................. $ 6,000
Water and Sewer................................................ $ 1,000
300
Safety Equipment............................................... $
Termite/Bug Service........................................... $ 1,900
0
Other............................................................... $
TOTAL MAINTENANCE EXPENSE.................................
Administration Department
Labor...............................................................
Payroll Taxes....................................................
Group Insurance................................................
Worker's Compensation Insurance.........................
Mussel Labor...............................................................
Payroll Taxes..............................................................
Workman's Comp. Insurance.....................................
Employee Relations............................................
Board of Directors................................................
Accounting and Auditing.......................................
Electricity..........................................................
Propane...........................................................
Mileage...........................................................
Office Supplies...................................................
Equipment Repairs and Maintenance......................
Facility Repairs and Maintenance...........................
General Insurance...............................................
Legal Expenses..................................................
Bank and Finance Charges..................................
General Printing Expense.....................................
$166,680
$ 13,850
$ 13,296
$ 1,385
$ 18,565
$ 1,632
$ 1,629
$ 8,000
$ 1,500
$ 10,000
$ 4,500
$ 1,000
$ 4,200
$ 15,000
$ 5,000
$ 2,000
$ 95,000
$ 75,000
$ 20,000
$ 20,000
$358,093.00
Postage
. $ 15,000
Telephone and Modem.........................................$ 7,500
Contraband Control.............................................$
1,000
WebSite...........................................................$ 5,000
Taxes and Licenses............................................$ 12,000
Activities...........................................................$
5,500
Other...............................................................$
0
TOTAL ADMINISTRATION EXPENSE..............................
$ 524,237.00
Campground/Marina
Electricity.......................................................... $ 2,500
Rent (Point) ....................................................... $10,000
Repairs............................................................ $ 2,000
Supplies........................................................... $ 2,500
Water and Sewer................................................ $ 5,000
PortaJons................................................................... $ 3,500
Fish Cleaning Station Cleanout................................... $ 2,500
Other...............................................................$
0
CAMPGROUND/MARINA EXPENSE..............................
$ 28,000.00
Equestrian Center
Labor............................................................... $22,000
Payroll Taxes.................................................... $ 2,530
Worker's Compensation Insurance.......................... $ 3,600
Electricity.......................................................... $
350
Fuel................................................................. $ 1,850
Repairs, Supplies, Small Tools and Equipment......... $ 2,100
Water and Sewer............................................... $ 3,200
PortaJon.......................................................... $ 1,089
Trash Collection................................................. $
350
Manure Removal................................................ $
0
Insurance Contribution................................................ $ 2,500
Contingency...................................................... $ 3,331
Other............................................................... $
0
EQUESTRIAN CENTER EXPENSE...............................
$ 42,900.00
80-Boat Slips
Maintenance Labor Transfer..................................$ 7,000
Insurance...........................................................$ 7,500
DockFees..........................................................$ 1,640
Rent (Point)........................................................$ 20,000
Supplies/Repairs..................................................$ 1,000
BOAT SLIP EXPENSE................................................
$ 37,140.00
20-Boat Slips
Maintenance Labor Transfer .................................. $ 1,000
Insurance...........................................................$1,650
DockFees..........................................................$ 410
Supplies/Repairs..................................................$ 500
BOAT SLIP EXPENSE................................................
4
$ 3,560.00
Mussel Inspections
. $ 8,500
Labor
70
Payroll Taxes..............................................................$
Workman's Comp. Insurance.....................................$ 1,105
Telephone...................................................................$ 1,000
Supplies/Repairs..................................................$ 2,000
MUSSEL INSPECTION EXPENSE..............................
$ 12,675.00
Recreation Centers
Pool Labor........................................................ $ 48,500
Payroll Taxes..................................................... $ 6,950
Workers's Compensation Insurance....................... $ 4,000
Gateway Park Electricity....................................... $
500
Gateway Park Repairs and Supplies...................... $
500
Gateway Park Water and Sewer ............................ $10,000
Heritage Park Repairs and Supplies........................ $
500
Pool #1 Electricity ............................................... $ 12,500
Pool #1 Repairs................................................. $ 2,000
Pool #1 Supplies................................................ $ 5,000
Pool #1 Telephone............................................. $
100
Pool #1 Water and Sewer.................................... $ 3,000
Pool #2 Electricity............................................... $ 3,300
Pool #2 Repairs................................................. $
500
Pool #2 Supplies................................................ $ 1,700
100
Pool #2 Telephone............................................. $
Pool #2 Water and Sewer.................................... $ 4,000
Recreation Barn Electricity................................... $ 3,500
Recreation Barn Propane..................................... $
700
Recreation Barn Repairs...................................... $
500
Recreation Barn Supplies..................................... $ 1,500
Recreation Barn Water and Sewer......................... $ 2,000
Other...............................................................$
0
RECREATION CENTER EXPENSE................................
$ 111,350.00
RV Area
Electricity..........................................................$ 2,000
Repairs............................................................$
500
Supplies............................................................$ 1,000
Trash Collection ................................................. $26,532
Water and Sewer................................................$ 3,000
Other...............................................................$
0
RV AREA EXPENSE...................................................
$ 33,032.00
Other Expenses
Income Taxes...................................................$
1,000
Bad Debt Expense.............................................$ 5,000
Contingency.....................................................$ 46,460
TOTAL OTHER EXPENSE
$ 52,460.00
TOTAL OPERATING EXPENSE...........................
5
$1,860,147.00
RESERVE ALLOCATION...............................................................$
596,300.00
CAPITAL ALLOCATION................................................................$
5,000.00
TOTAL EXPENSE
$2,461,447.00
RESERVE STUDY SUMMARY
The Heritage Ranch Owners' Association (Association) is a planned development. There are 2,092 lots. The
following financial projection is based upon certain assumptions regarding condition, replacement costs and
estimated lives of the components in this study which was prepared for the Association by Association
Reserves, Inc., in 2013 and updated in 2014. Estimated replacement costs are based upon bids received,
prior costs paid, construction cost manuals and other sources. This study is limited to the components
contained herein. Certain components have been omitted as they have useful lives in excess of the scope of
the study (30 years), or major repair and replacement costs are included in the operating budget. The reserve
study funding plan has been calculated using a pooled cash flow method. Under this method, funding is not
directly linked to any specific component, but is intended to provide adequate funding for the future estimated
expenditures of all common area components considered together. Factors considered in the calculation of
the funding plan are estimated interest rates, tax rates, and projected incremental increases in the regular
annual assessment, which are intended to compensate for the effects of inflation. The minimum funding level
is $1,000. A site inspection was performed in March 2013. An evaluation of the Association's common area
components was made to determine the age, condition, estimated remaining life, and estimated current
replacement cost. This information, combined with an inflation rate and a contingency rate have been applied
to determine the timing and amount of estimated future expenditures. The maximum interest rate permitted by
statue is 2% in excess of the discount rate published by the Federal Reserve Bank of San Francisco at the
date of this report. The maximum rate for purposes of this funding study is 2.0%. The actual interest rate used
in this reserve study is less than the maximum rate established by statue. The tax rate is calculated as an
offset of interest earned for purposes of this funding calculation. Assumptions for interest earnings on invested
funds is at 2.00%; the inflation rate estimated for future replacement costs is at 3.00%; the contingency factor
is at 0.00%; and the applicable net income tax rate is estimated at 15.00%.
The present annual contribution to reserves beginning July 1, 2014 from assessments is $568,000.00 with
additional deposits to be made from fees collected for new home construction, the equestrian center and boat
slips; the present year monthly contribution to reserves from assessments is $47,333.33; and the present
monthly contribution to reserves per homeowner is $22.63. The annual contribution to reserves from
assessments beginning July 1, 2013 was $568,000.00; with the prior year being at $465,000.00. Expenses in
this report are based on extension of expenses determined for previous years.
The Board of Directors has not determined to defer or not undertake repairs or replacement of any major
component with a remaining life of 30 years or less. The Board of Directors has determined that, based on the
reserve study, no special assessments are presently anticipated for any year covered by this study.
However, actual expenditures may vary from the estimated amounts, and the variations may be material.
Therefore, amounts accumulated in the reserve fund may not be adequate to meet future needs. The Board of
Directors regularly updates assumptions and estimates used in the reserve study in order to have accurate
financial projections of future cash needs. The Board of Directors has determined that it will use the following
mechanisms to fund reserves for the repair or replacement of the Association's common area components:
Regular Assessments = yes; Special Assessments = no; Borrowing Funds = no; Use of Other Assets = no;
Deferral of Selected Repairs or Replacements = no; Alternative Mechanisms = no. The mechanisms noted to
fund reserves for the repair or replacement of the Association's common area components are those that are
anticipated based upon the current reserve study. It is possible that other of the mechanisms not presently
anticipated may be considered at a future date. The Association has no outstanding loans with any outside
agencies with an original term of more than one year. The Association has an internal loan for building of the
20-Boat Slips. The balance owed back to reserves as of June 30, 2013 is $83,738.21.
Assessment and Reserve Funding Disclosure Summary
For Fiscal Year Ending: June 30, 2014
1- Current Budget: The regular assessment per ownership interest is $85.00 per month:
Per Lot
Item
Total
Reserve Contributions - Monthly
Operating Budget - Monthly
Contingency for Bad Debt - Monthly
Capital Improvement Fund -- Monthly
Total Per Month
$
$
$
Total Per Year
$2,133,840.00
$
$ 22.63
$ 61.97
$ 0.20
$ 0.20
$ 85.00
47,333.33
129,653.35
416.66
416.66
177,820.00
$1,020.00
Note: If assessments vary by the size or type of unit, the assessments applicable to this unit may be found attached to this report. Additional
reserve contributions not shown above are projected as follows: Equestrian Center = $1,0001year; 80-Boat Slips = $12,8601year, 80-Boat Slips =
$4,658.00.
2- Additional regular or special assessments that have already been scheduled to be imposed or charged,
regardless of the purpose, if they have been approved by the Board and/or the Members are as follows:
Date Due
Amount Per Lot
Purpose
Interest per month/year
N/A
N/A
N/A
N/A
Note: If assessments vary by the size or type of unit, the assessments applicable to this unit may be found attached to this report.
3- Based upon the most recent reserve study and other information available to the Board of Directors, will
currently proiected reserve account balances be sufficient at the end of each year to meet the Association's
obligation for repair and/or replacement of maior components during the next 30 years?
Yes.
4- If the answer to #3 above is "No". what additional assessments or other contributions to reserves would be
necessary to ensure that sufficient reserve funds will be available each year during the next 30 years that have
not yet been approved by the Board and/or the Members?
Approximate Fiscal Year Assessment Will Be Due
Total Amount Per Lot
N/A
N/A
5- All maior components are included in the reserve study and are included in its calculations. The following
maior components are NOT included in the existing reserve funding:
Maior Component
Remaining Life
Reason Not Included
Cost
Building Structures
Landscaping
Hardscape
Underground Utilities
Unable to determine
Unable to determine
Unable to determine
Unable to determine
Lifetime Component
Lifetime Component
Lifetime Component
Lifetime Component
Unknown
Unknown
Unknown
Unknown
6- Based on the method of calculation in oaraaraoh (4) of subdivision (b) of Section 5570. the estimated amount
required in the reserve fund at the end of the current fiscal year is $4.71 6,111.00. based in whole or in part on the
last reserve study or update prepared by Association Reserves, Inc. as of June 30, 2014. For the Fiscal Year
beginning July 1, 2014, the proiected balance at the end of the current fiscal year is $2,233,423.00, resulting in
reserves being 46.3 percent funded at this date. If an alternate, but generally accepted, method of calculation is
also used, the required amount is N/A. (No alternate method considered.)
Note: The financial representations set forth in this summary are based on the best estimates of the preparer at that time. The estimates are
subject to change.
7- Based on the method of calculation in paragraph (4) of subdivision (b) of Section 5570 of the Civil Code, the
estimated amount required in the reserve fund, the projected reserve fund cash balance, and percent funded at
the end of each of the next five budgeted years is shown in the table below, and the proiected reserve fund cash
balance in each of those yars, taking into account only assessment already approved and other known reserves
is shown in the table below. If the reserve funding plan approved by the Association is implemented, the
proiected reserve fund cash balance in each of those years will be as showin in the table below, leaving the
reserve at the percentages shown:
Year
06/30/14
06/30/15
06/30/16
06/30/17
06/30/18
06/30/19
Estimated Amount Required
In the Reserve Fund
$4,716,111.00
$4,821,933.00
$5,158,801.00
$5,979,121.00
$6,664,160.00
$7,367,357.00
Projected Reserve Fund
Cash Balance
$2,453,934.00
$2,233,423.00
$2,244,144.00
$2,733,206.00
$3,091,131.00
$3,471,743.00
Percent Funded
52.0%
46.3%
43.5%
45.7%
46.4%
47.1%
Note: At the time this summary was prepared, the assumed long-term before tax interest earned on reserve funds was 2.00% per year, and the
assumed long term inflation rate to be applied to major component repair and replacement costs was 3.00% per year. For the purposes of
preparing a summary pursuant to this section: (1) "Estimated remaining useful life" means the time reasonably calculated to remain before a
major component will require replacement; (2) Major component" has the meaning used in Section 1365.5. Components with an estimated
remaining useful life of more than 30 years may be included in a study as a capital asset or disregarded from the reserve calculation, so long as
the decision is revealed in the reserve study report and reported in the Assessment and Reserve Funding Disclosure Summary; (3) The form set
out in subdivision (a) shall accompany each pro forma operating budget or summary therefore that is delivered pursuant to this article; (4) For
the purpose of the report and summary, the amount of reserves needed to be accumulated for a component at a given time shall be computed
as the current cost of replacement or repair multiplied by the number of years the component has been in service divided by the useful life of the
component. This shall not be construed to require the Board of Directors to fund reserves in accordance with this calculation.
RESERVE CASH FLOW ANALYSIS BASED ON PROJECTED CONTRIBUTION FOR BUDGET
For
Year End Beginning Balance Income
06/30/14 $2,453,934
06/30/15 $2,344,642
06/30/16 $2,522,202
06/30/17 $3,053,387
06/30/18 $3,415,218
$588,075
$588,075
$588,075
$588,075
$588,075
Investment Earnings
Net of Taxes
Expenses
$46,833
$ 744,200
$44,737
$ 544,252
$49,730
$ 106,620
$58193
$ 284,437
$66,572
$ 310,021
Ending
Balance
Percent
Funded
Ideal
Balance
$2,344,642
$2,522,202
$3,053,387
$3,415,218
$3,459,844
52.0%
48.6%
48.8%
51.0%
51.2%
$4,716,111
$4,821,933
$5,158,801
$5,979,121
$6,664,160
NOTICE OF DOCUMENT DELIVERY STANDARDS BETWEEN HROA AND OWNERS
All documents required to be provided to the Association, shall be delivered or mailed to: HROA, 3945 Heritage Road,
Paso Robles, CA 93446. A mail slot located to the left of the front door is available for after-hour delivery. All "required
notices" of documents to be provided to owners shall be done by first-class mail, postage prepaid, or by e-mail, facsimile,
or other electronic means, if the recipient has consented in writing to that method of delivery. (Such consents may be
revoked, in writing, by the recipient.) An owner of the Association may provide written notice by facsimile transmission or
United States mail to the Association of a secondary address. If a secondary address is provided, the Association shall
send any and all "required notices" and legal notices required pursuant to this article to both the primary and the
secondary address.
All "general notices" of documents to be provided to owners may be provided in one of the following methods, unless a
member specifies in writing to receive "general notices" in the same manner as "required notices": inclusion in a billing
statement, newsletter, or other document that is delivered by one of the methods provided in Section 4045 of the Civil
Code; or posting the printed document at the Recreation Barn, HROA Office, Tract 1910 and 1990 bulletin boards.
All notices of documents to be provided to owners shall be addressed to the recipient at the address last shown on the
books of HROA. It is the owner's responsibility to keep HROA informed of any changes in ownership and address
information.
NOTICE ASSESSMENTS AND FORECLOSURE
This notice outlines some of the rights and responsibilities of owners of property in common interest developments and
the Associations that manage them. Please refer to the sections of the California Civil Code indicated for further
information. A portion of the information in this notice applies only to liens recorded on or after January 1, 2003. You may
wish to consult a lawyer if you dispute an assessment.
ASSESSMENTS AND FORECLOSURE
Assessments become delinquent fifteen (15) days after they are due, unless the governing documents provide for a
longer time. The failure to pay Association assessments may result in the loss of an owner's property through
['1
foreclosure. Foreclosure may occur either as a result of a court action, known as judicial foreclosure or without court
action, often referred to as nonjudicial foreclosure. For liens recorded on and after January 1, 2006, an Association may
not use judicial or nonjudicial foreclosure to enforce that lien if the amount of the delinquent assessments or dues,
exclusive of any accelerated assessments, late charges, fees, attorney's fees, interest and costs of collection, is less than
one thousand eight hundred dollars ($1800). For delinquent assessments or dues in excess of one thousand eight
hundred dollars ($1,800) or more than twelve (12) months delinquent, an Association may use judicial or nonjudicial
foreclosure subject to the conditions set forth in Article 3 (commencing with Section 5700) of Chapter 8 of Part 5 of
Division 4 of the Civil Code. When using judicial or nonjudicial foreclosure, the Association records a lien on the owner's
property. The owner's property may be sold to satisfy the lien if the amounts secured by the lien are not paid. (Sections
5700 through 5720 of the Civil Code, inclusive)
In a judicial or nonjudicial foreclosure, the Association may recover assessments, reasonable costs of collection,
reasonable attorney's fees, late charges, and interest. The Association may not use nonjudicial foreclosure to collect
fines or penalties, except for costs to repair common areas damaged by an owner or an owner's guests, if the governing
documents provide for this. (Sections 1366 and 1367.1 of the Civil Code) The Association must comply with the
requirements of Section 1367.1 of the Civil Code when collecting delinquent assessments. If the Association fails to
follow these requirements, it may not record a lien on the owner's property until it has satisfied those requirements. Any
additional costs that result from satisfying the requirements are the responsibility of the Association. (Section 5725 of the
Civil Code)
The Association must comply with the requirements of Article 2 (commencing with Section 5650) of Chapter 8 of Part 5 of
Division 4 of the Civil Code when collecting delinquent assessments. If the Association fails to follow these requirements,
it may not record a lien on the owner's property until it has satisfied those requirements. Any additional costs that result
from satisfying the requirements are the responsibility of the Association. (Section 5675 of the Civil Code)
At least thirty (30) days prior to recording a lien on an owner's separate interest, the Association must provide the owner
of record with certain documents by certified mail., including a description of its collection and lien enforcement
procedures and the method of calculating the amount. It must also provide an itemized statement of the charges owed by
the owner. An owner has a right to review the Association's records to verify the debt. (Section 5660 of the Civil Code)
If a lien is recorded against an owner's property in error, the person who recorded the lien is required to record a lien
release within twenty-one (21) days, and to provide an owner certain documents in this regard. (Section 5685 of the Civil
Code)
The collection practices of the Association may be governed by state and federal laws regarding fair debt collection.
Penalties can be imposed for debt collection practices that violate these laws.
PAYMENTS
When an owner makes a payment, the owner may request a receipt, and the Association is required to provide it. On the
receipt, the Association must indicate the date of payment and the person who received it. The Association must inform
owners of a mailing address for overnight payments, which is 3945 HERITAGE ROAD, PASO ROBLES. (Section 5655
of the Civil Code)
An owner may, but is not obligated to, pay under protest any disputed charge or sum levied by the Association, including,
but not limited to, an assessment, fine, penalty, late fee, collection cost, or monetary penalty imposed as a disciplinary
measure, and by so doing, specifically reserve the right to contest the disputed charge or sum in court or otherwise.
An owner may dispute an assessment debt by submitting a written request for dispute resolution to the Association as set
forth in Article 2 (commencing with Section 5900) of Chapter 10 of Part 5 of Division 4 of the Civil Code. In addition, an
Association may not initiate a foreclosure without participating in alternative dispute resolution with a neutral third party as
set forth in Article 3 (commencing with Section 5925) of Chapter 10 of Part 5 of Division 4 of the Civil Code, if so
requested by the owner. Binding arbitration shall not be available if the Association intends to initiate a judicial
foreclosure. An owner is not liable for charges, interest, and costs of collection, if it is established that the assessment
was paid properly on time. (Section 5685 of the Civil Code)
A payment made by the owner toward a debt involving assessments owed, shall first be applied to the assessments owed, and, only after the
assessment owed are paid in full shall the payments be applied to the fees and costs of collection, attorney's fees, late charges or interest.
MEETINGS AND PAYMENT PLANS
An owner of a separate interest that is not a time-share interest may request the Association to consider a payment plan
to satisfy a delinquent assessment. The Association must inform owners of the standards for payment plans, if any exist.
(Section 5665 of the Civil Code) The Board of Directors must meet with an owner who makes a proper written request for
a meeting to discuss a payment plan when the owner has received a notice of a delinquent assessment. These payment
plans must conform with the payment plan standards of the Association, if they exist. (Section 5665 of the Civil Code)
DISPUTE RESOLUTION
The following is a summary of HROA's dispute resolution procedures related to an owner's rights, duties and liabilities as
provided for under the governing documents of the Association: This disclosure is made to satisfy Civil Code 5920 and
5965. Association invoked disputes against an owner (other than related to assessments, and certain legal disputes
which are subject to being processed in small claims or superior court) are either handled under the procedure provided
for in the enclosed HROA Delinquent Fine Policy and Procedures, or the Architectural and Environmental Control (AEC)
Approval procedures provided for in the Master CC&Rs et seq. (See below summary of REQUIREMENTS FOR
PHYSICAL CHANGES TO THE EXTERIOR OF YOUR PROPERTY.) Association invoked disputes against an owner
related to assessments are handled under the procedure provided for in the enclosed HROA Delinquent Assessment
Policy. An owner has the right to elect not to participate in any procedure invoked by the Association, and may instead
commence an action of their own against the Association directly in small claims court or in superior court. Small claims
court may be used by an owner to dispute any charge or sum levied by the Association, including but not limited to, an
assessment, fine, penalty, late fee, collection cost, or monetary penalty imposed as a disciplinary measure (if the amount
does not exceed the jurisdictional limits stated in Sections 116.220 and 116.221 of the Code of Civil Procedure). Owner
invoked disputes which are not related to assessments, fines or AEC approval, are processed by HROA through a written
complaint form, resulting in a decision rendered by an HROA representative, which includes the right of appeal of the
owner before the HROA Board of Directors, with both parties in the dispute allowed to be present. Neither the Association
or an owner, may file an enforcement action in superior court for declaratory, injunctive or writ relief, or for that relief in
conjunction with a claim for monetary damages not in excess of the jurisdictional limits stated in Sections 116.220 and
116.221 of the Code of Civil Procedure relating to enforcement of the governing documents of the development, unless
the parties have endeavored to submit their dispute to Alternative Dispute Resolution (ADR). (Civil Code 5930) Failure of
an owner of the Association to comply with the ADR requirements of Section 5930 of the Civil Code may result in the loss
of your right to sue the Association or another owner of the Association regarding enforcement of the governing
documents or the applicable law. An owner may also request an ADR process for purposes of resolving delinquent
assessment issues, except as otherwise provided by law. ADR does not apply to a small claims action.
REQUIREMENTS FOR PHYSICAL CHANGES TO THE EXTERIOR OF YOUR PROPERTY
The following requirements for Association approval of physical changes to the exterior of your property are provided
(excerpts from HROA Membership Handbook and Master CC&Rs): This disclosure is made to satisfy Civil Code 4765.
The CC&Rs for your Tract, supplemental to the Master CC&Rs, specify what exterior improvements and structures are
allowed on your lot. All plans and specifications for any exterior improvement or structure that is to be erected on, or
moved upon or to any lot, and the proposed location thereof upon any lot is subject to approval of the Association through
the Architectural and Environmental Control (AEC) Committee. The AEC Committee members are volunteers, who are
required to be members of HROA; and are appointed by the Board of Directors. The HROA website 'Calendar' lists the
time and date of the AEC Committee Meetings. The AEC Committee is required to meet a minimum of twice monthly. All
AEC Committee meetings are open to the membership and generally conducted in accordance with Robert's Rules of
Order. Plans submitted to the AEC Committee shall be in accordance with instructions provided for on the application
form, and shall include a plot plan showing the location of the building, wall, fence or other improvement or structure
proposed to be constructed, altered, placed or maintained, together with the proposed construction material, color
schemes for roofs and exteriors thereof, proposed excavation, fill and tree removal, if any, and proposed landscape
planning. The AEC Committee shall approve or disapprove any submitted plans within thirty (30) days of the receipt
thereof, or shall notify the person submitting them that an additional period of time, not to exceed fifteen (15) days, is
required for such approval or disapproval. Plans, specifications and details not approved or disapproved within the time
limits provided herein shall be deemed approved as submitted. Plans may be rejected by the AEC Committee for
revisions or modifications, or if they are submitted incomplete. The decisions of the AEC Committee shall be binding,
provided, however, that any owner who desires to appeal the AEC Committee's decision may do so by filing a written
request to the Association. The Board of Directors may then reject the owner's appeal or reverse the AEC Committee's
decision and the Board of Directors' decision shall be final.
10
RESOLUTION OF THE
HERITAGE RANCH OWNERS' ASSOCIATION
RE: DELINQUENT FINE POLICY AND PROCEDURE
WHEREAS, the Heritage Ranch Owners' Association's Bylaws Article IX(d) establishes the duty
and power of the Board of Directors to adopt and establish rules and regulations, including the
imposition of monetary penalties and/or the suspension of voting rights and the right to use any
Common Areas or Common Facilities; and
WHEREAS, the Heritage Ranch Owners' Association's CC&Rs Article VII(d) and (e) specify the
authority of the Board of Directors to make, establish, promulgate, amend and repeal the Rules and
Regulations of the Association, and amend and repeal rules, regulations and criteria pertaining to the
functions and decisions of the Architectural and Environmental Control Committee; and
WHEREAS, California Civil Code Section §5310 and 5850 requires that if an Association adopts or
has adopted a policy imposing a monetary penalty, including any fee, on any Association member for
a violation of the governing documents or rules of the Association, including any monetary penalty
relating to the activities of a guest or invitee of a member, the Board of Directors shall adopt and
distribute to each member, by personal delivery or first-class mail, a schedule of the monetary
penalties that may be assessed for those violations, which shall be in accordance with authorization
for member discipline contained in the governing documents; and
WHEREAS, the Heritage Ranch Owners' Association will enforce all CC&Rs and Rules and
Regulations equitably and issue citations for violations subject to the fine schedule (Schedule of
Monetary Penalties).
NOW, THEREFORE BE IT RESOLVED that the Association hereby adopts the following policies and
practices in enforcing the fines against its members for their default in the payment (Minimum Fine
amount of $25.00):
1. If a property owner receives a copy of a written citation attached to a "Notice To
Appear" form, it states the time and place to appear at the Violation Hearing before the
Violation Hearing Officer. If a property owner receives a citation on behalf of their
tenant, they may waive their right to appear in writing, by allowing the tenant to appear
on the property owner's behalf.
2. The property owner is notified in writing within 10 days after the Violation Hearing as
to the decision of the Violation Hearing Officer by "Notice of Decision".
3. If the property owner (and/or tenant) attended the Violation Hearing and/or submitted
a letter as their defense, and was found guilty by the judge, the property owner (and/or
tenant) may appeal the decision by written request to the Board Secretary and by
paying the fine assessed within 10 days of receipt of the "Notice of Decision". The
property owner must be present on appeal, if the citations on the books of the
Association at the time of the scheduled appeal are $500.00 or more.
4. If the property owner does not appeal the decision, they have 15 days after the date
of the receipt of the "Notice of Decision" in which to pay the indicated fine. If payment
11
is not received after 15 days, a late charge penalty of $10.00 will be posted. The
property owner shall receive a statement showing the balance of their account.
5. After 90 days from posting to an account, a letter inviting the delinquent property
owner to a hearing will be sent (to be held no less than 20 days later) to confirm the
status of the account, and consider the suspension of membership privileges. After the
hearing, a "Notice of Decision" is sent to the delinquent property owner.
6. After a property owner has their membership privileges suspended, the Association
may seek a personal money judgment against the property owner for any or all monies
owed after providing a "Notice of Intent" and giving the property owner fifteen (15) days
to make their account current.
7. When payment is not received in full within the fifteen (15) day grace period, the
Board of Directors will meet and decide to initiate a Small Claims or other action against
the property owner.
8. Prior to transfer of the property through sale or foreclosure, payment for all
outstanding fines will be recorded as a debt against the property.
9. The foregoing policies and practices shall remain in effect until such time as they
may be changed, modified or amended by a duly adopted resolution of the Board of
Directors.
BE IT FURTHER RESOLVED that within forty-five (45) to sixty (60) days prior to the beginning of
each fiscal year a copy of this DELINQUENT FINE POLICY AND PROCEDURE as adopted or as
may be subsequently modified and amended, shall be delivered to each of the property owners of the
Association.
THIS RESOLUTION is adopted and made a part of the minutes of the Third-Quarter Board meeting
of April 11, 2014 and rescinds RES13-16 adopted April 12, 2013.
BY:
AUESTED
Gilbert Hayden, Pre
\
Steven Negro, Secrry
RES14-16
12
RESOLUTION OF THE
HERITAGE RANCH OWNERS' ASSOCIATION
RE: DELINQUENT ASSESSMENT POLICY AND PROCEDURE
WHEREAS, the Heritage Ranch Owners' Association's CC&Rs Article V establishes the obligation,
purpose, method and basis procedure for assessing each owner of a separate interest, and
WHEREAS, California Civil Code Section §5310 requires that homeowner association Boards of
Directors shall prepare and distribute to all members a written statement describing the Association's
policies in enforcing lien rights or other legal remedies for the default in the payment of its
assessments against its members.
NOW, THEREFORE BE IT RESOLVED that the Association hereby adopts the following policies and
practices in enforcing the lien rights or other legal remedies against its members for their default in
the payment of assessments:
Commencing July 1, 2014, the annual assessment is $1,020.00, payable on a
quarterly basis at $255.00/quarter. Assessments are due on July 1st, October 1st,
January and April V.
1. All assessments shall be delinquent if not received within fifteen (15) days after they
shall be due and shall bear a late charge penalty of $10.00. A monthly statement will be
sent showing the posting of the late charge. Payments are to be made payable to:
HROA, 3945 Heritage Road, Paso Robles, CA 93446.
2. After posting of the late charge penalty to an account, a letter inviting the delinquent
property owner to a hearing will be sent (to be held no less than 20 days later) to confirm
the status of the account, and consider the suspension of membership privileges.
3. After the hearing, a "Notice of Decision" is sent to the delinquent property owner
within fifteen (15) days after the hearing date.
4. When an assessment or installment is not paid within forty-five (45) days after the
"Notice of Decision" or a written request has not been sent to appeal the decision before
the Board of Directors, the assessment may bear interest from the date of delinquency
at the rate of ten percent (10%) per annum, and the account shall be turned over to the
attorney to file a "Notice of Intent to Lien". The attorney's costs become part of the debt
owed against the property. The "Notice of Intent to Lien" shall be sent to the delinquent
property owner requesting payment in full within thirty (30) days to avoid the placement
of a lien upon the property.
5. The delinquent property owner has the right to request a meeting with the Board of
Directors to discuss a payment plan, by submitting a request in writing to the Board
Secretary, mailed within fifteen (15) days after the postmark of the "Notice of Intent to
Lien". The Board of Directors must then schedule a meeting with the delinquent
property owner within forty-five (45) days of the postmark of the delinquent property
owner's request.
6. When payment is not received in full within the thirty (30) day grace period and the
delinquent property owner has not requested a meeting with the Board of Directors as
13
stated above, the Board of Directors will meet and decide to record a lien in an open
Board Meeting. A "Notice of Assessment Lien" shall then be recorded in the office of the
San Luis Obispo County Recorder in accordance with the laws of the State of California.
Said lien shall be handled by the attorney, and shall be for payment by the property
owner of all assessments then due, any assessments thereafter accruing, and for any
reasonable costs incurred in collecting the delinquent assessments (including
reasonable attorney fees), late charges, and interest assessed. A copy of the recorded
lien shall be sent to the property owner.
7. Should the amounts claimed by the lien not be fully paid within thirty (30) days after
recordation of the lien, the Board of Directors may meet and authorize the initiation of
foreclosure or in the alternative, to participate in dispute resolution pursuant to the
Association's 'meet and confer' program required in Civil Code Section 1363.810 et seq.
This decision of the Board of Directors is an Executive Session matter. If dispute
resolution is not agreed to, a demand letter shall then be sent and a "Notice of Default"
shall be recorded if the account is not fully paid within fifteen (15) days after the demand
letter has been sent.
8. Foreclosure proceedings commence when the "Notice of Default" is recorded.
Foreclosure will result in the sale of the property and the proceeds of the sale will be
applied to the payment of all delinquent assessments, and other reasonable costs
incurred in collecting the delinquent assessments (including reasonable attorney fees
and trustee fees and costs), late charges, and interest assessed. In the event the
proceeds of the sale are not sufficient to pay said sums, a deficiency judgment may be
sought against the property owner personally for any amounts not so paid.
9. Should the Association's lien rights be destroyed or otherwise rendered
unenforceable in whole or in part, then the Association may seek a personal money
judgment against the property owner for all assessments, costs and attorney fees that
may be due from the property owner, as incurred by or on behalf of the Association.
The Association may also utilize other means of collection.
10. The foregoing policies and practices shall remain in effect until such time as they
may be changed, modified or amended by a duly adopted resolution of the Board of
Directors.
BE IT FURTHER RESOLVED that within thirty (30) to ninety (90) days prior to the beginning of each
fiscal year a copy of this DELINQUENT ASSESSMENT POLICY AND PROCEDURE as adopted or
as may be subsequently modified and amended, shall be delivered to each of the property owners of
the Association as required by Civil Code Section §1365(d).
THIS RESOLUTION is adopted and made a part of the minutes of the Third-Quarter Board Meeting
of April 11,2014 and rescinds RES13-15 adopted April 12, 2013.
0
ATTESTED:
BY:
Steven Negro, SecretarO
Gilbert Hayden, President
RESI4-15
14
SCHEDULE OF FEES
July 1, 2014
PUBLICATION CHARGES
COST
UNIT
DESCRIPTION
COMMENT
CC&R Book
Bylaw Book
Rules and Regulations Book
Membership List/Address Labels
Individual Tract List/Address Labels
Identification Card
Photocopying
Fax Copies
Escrow Package
DESCRIPTION
Recreation Barn Rental
Pavilion Rental
Swimming Pool Rental (Small Pool)
Boat Slip and Dock Rental
Private Boat Dock
Campground Rental: Hook-Up
Non Hook-Up
Watercraft
Equestrian Center/Stall
Each
$ 8.00
Each
$ 8.00
Each
$ 8.00
One-time use, with approval. Cannot be provided on disk
$ 25.00
Each
One-time use, with approval. Cannot be provided on disk
Each
$ 5.00
After two (2), when Transfer or Tenant Fee paid
$ 10.00
Each
Replacement card, when lost or stolen
$ 25.00
Each
Page
$ 0.20
Page/Duplex
$ 0.25
Outgoing
Page
$ 1.00
Incoming
1 $ 0.50
Page
1 $ 75.00
I Seller Requested Documents to Prospective Purchaser
Each
ALL CHARGES ABOVE PLUS POSTAGE IF MAILED
FACILITY (EXCLUSIVE) USE FEES
UNIT
COST
$100.00
$200.00
$150.00
$ 50.00
$ 75.00
$100.00
$ 75.00
$750.00
$250.00
$100.00
$50.00
$350.00
$ 50.00
$150.00
$ 50.00
$ 25.00
$150.00
$ 35.00
$ 25.00
$ 20.00
$ 25.00
$ 40.00
$ 50.00
$ 60.00
$ 75.00
$ 80.00
$100.00
$ 55.00
$100.00
$ 10.00
1
1
1
1
1
1
One-time use
One-time use
One-time use
One-time use
Year
Week
Week
Approx. 6 months
Week
Each
Year
Day
Day
Weekday/per day
Weekday/per day
Weekend
Weekend
Weekend
Weekend
Weekend
Weekend
Month
Overnight
COMMENT
Without kitchen use
With kitchen use
Refundable Cleaning/Damage Deposit
Refundable Cleaning/Damage Deposit
Refundable Cleaning/Damage Deposit
80 Slips / 5-Year Lease Agreement
80 Slips / Refundable Cleaning/Damage Deposit
20 Slips / Per Week: "Boating Season"
20 Slips/ Per Week: "Off-Season"
20 Slips: Entire "Off-Season"
20 Slips / Refundable Cleaning/Damage Deposit
Party Dock
Party Dock I Refundable Cleaning/Damage Deposit
Replacement Key for Gates
No new Docks allowed per Policy
Full hook-up (2 stickered vehicles allowed)
Non hook-up (2 stickered vehicles allowed)
Monday thru Thursday / Pre-registered
Monday thru Thursday / Non-registered
Saturday thru Sunday / Pre-registered
Saturday thru Sunday I Non-registered
Friday thru Sunday / Pre-registered
Friday thru Sunday / Non-registered
Friday thru Monday " Holiday"/ Pre-registered
Friday thru Monday "Holiday"/ Non-registered
I
Refundable Cleaning/Damage Deposit
Guest Horse
CAMPGROUND CANCELLATIONS: LESS THAN 7 DAYS - NO REFUND; 7 DAYS OR MORE --$10.00 CANCELLATION FEE
EMPTY GUEST WATERCRAFT TRAILERS WILL BE TREATED THE SAME AS IF WATERCRAFT WERE ON-BOARD AND WILL BE CHARGED THE ABOVE FEES
DESCRIPTION
MISCELLANEOUS FEES
COST
UNIT
Mowing Fees
Chipping Fees
COMMENT
40.00
Per Mowing
Lots (up to % acre)
$
45.00
1 30 Minutes
Or Minimum
$
45.00
2 30 Minutes
Or Minimum (1 hour maximum allowed)
$
Fire Wood (Split)
½ or full cord
Mixed: 1/2 @ $85; full @ $150 Oak: 1/2 @ $150, full © $250
$85 to $250
Late Charges: Assessments, Equestrian, Docks
10.00
Each
Assessed against each payment delinquent
$
Late Charges for Fines
10.00
Each
Assessed against each fine delinquent
$
RV Trash Area Fee
11.00
Month
Payable Qrtly: January 1, April 1, July 1 & October 1
$
15.00
Each
Key Replacement for Trash Area
$
Tenant Fee
Each
Non-Refundable - per tenant
$ 100.00*
Refundable HROA Property Damage Deposit
$ 500.00
Failure to retrieve vehicle/vessel decals - tenant moves
$ 100.00
New Property Owner Transfer Fee
95.00 1
Each
Paid through escrow
$
Insufficient Funds/Returned Check Charge
35.00
Each
$
New Home Construction Fee
$ 500.00
Each
Non-Refundable
Refundable HROA Completion Deposit
$2,500.00
Each
Re-inspection, Home Sales or Extension Fee
50.00
$
Dumpster Service at Maintenance
30.00
Per Cubic Yard
Average of 1-2 cubic yards in small pickup
$
Gate Remote Controls
1 $
50.00
Each
WA $25.00 INTERNAL CREDIT IS PROVIDED TO TENANTS IF THEY MOVE TO ANOTHER PROPERTY ON THE RANCH
CREDIT CARD CHARGES @ $20.00 MINIMUM TRANSACTION
15
SCHEDULE OF MONETARY PENALTIES
July 1,2014
All CC&Rs and Association Rules and Regulations will be enforced equitably by the Board of Directors and staff. The process
of enforcement may involve any combination of corrective, restrictive or financial measures. This Schedule of Monetary
Penalties has been adopted by the Board of Directors as the current enforcement policy. Corrective Measures: The
Association has the right to correct certain property violations on lots within Heritage Ranch and bill the property owner after
proper notice has been given. The Association has the right to bill the responsible property owner for repairs for damages
caused to Heritage Ranch property by any owner, their tenant(s) or their guest(s). Restrictive Measures: The Association has
the right to deny entry to any guest deemed to be a nuisance or threat to the community. The Association has the right to deny
use of any or all amenities to any owner (member), tenant or guest deemed to be a nuisance or threat to the community, or
whose privileges are revoked for non-payment of monies owed. Financial Measures: The Association has the right to issue
citations for violations of any CC&R provision, Rule or Regulation and after a hearing, assess such fines according to the
following schedule and/or deny use of any or all amenities to any owner (member), tenant or guest for any owner (member)
who's privileges are revoked:
RULES AND REGULATIONS, AND CC&R CITATION SCHEDULE
Description -- Refer to the HROA Membership Handbook (Rules & Regulations)
for detailed information
Fine
Amount
2.02.04 -- Occupancy in owner's residence without adhering to Tenant Policy
2.03.02, 2.04.01 -3, 3.04.01 -- Unauthorized entry is prohibited
2.03.02, 2.04.01-3, 3.04.01 --Aiding and abetting unauthorized entry is prohibited
2.05.02, 3.01.09 -- No altering of the common area without permission of the Association
2.05.04 -- Minor may not be out after 11 pm Friday-Saturday; or 10 pm Sunday-Thursday
2.05.05 -- Disturbing or disrupting peace of others prohibited. Unreasonable annoyance on
lot or common area.
2.05.06 -- Use (discharging) and unauthorized carrying of a firearm (loaded or concealed),
pellet,_pump _or_BB_guns_prohibited _on_common_area
$300.00
$ 50.00
$250.00
$500 .00*
$ 25.00
Open Fire
where not allowed
2.05.07-- No open fire allowed. Fires ni designated campground bbq pits only, as specified
$100.00
Fireworks
2.05.08 - Use of fireworks on the Ranch is prohibited
Home Occupation
Illegal Dumping
In Common Areas
Indecent Exposure / Public
Urination
Livestock and Equine
Minor/Possessing Alcohol
Adult Furnishing Alcohol to
Minor
Noise Curfew
Contractor's Dog
2.05.09 - Business out of home not in compliance
$ 25.00
2.05.02, 2.05.10-- No dumping of any kind allowed, expense of removal added to fine
$500.00
2.05.11 -- Acts of Exposure and/or Public Urination
$500.00
$ 25.00
$100.00
_____
Barking or Nuisance Animal
Animal Regulation
Unleashed Dog
No Soliciting
Theft of Property
2.05.12 - Animal _loose _on_Ranch
2.05.13 --Minor may not partake of alcoholic beverage in public
2.05.14 - Adult may not furnish a minor (under age twenty-one (21)) an alcoholic beverage
on RANCH property
2.05.15 - Loud Noise or amplified music on the RANCH between 10 pm and 6 am
2.05.16 --A contractor is not allowed to bring their dog onto Ranch property
2.05.16 -- Adog that is held by the Association for any period of time (per each 24 hour
period, or minimum)
2.05.16, 5.02 -- Dog continuous barking, owner not cleaning up after dog, or other nuisance
2.05.16, 5.01.04 -- Number and type of pets authorized, unattended dog at campground
2.05.16, 5.01.04-- Unleashed dog in common area is prohibited
2.05.17 -- No door-to-door disturbance/sales
2.05.18 -- Found in possession of stolen goods while on Ranch property
Vandalism, Graffiti, Littering
2.05.19 -- Acts of vandalism or graffiti that causes damage, or littering
Disturbing Wildlife
Intentional Cruelty to Wildlife
Refuse Containers /
Appliances
Vehicle Not in HROA
System
Member Lane Expired Decal
Off-Road Vehicle
Unlicensed Driver
Excessive Speed
Excessive Speed
in School Zone
Failure to Stop
Unsafe Driving
Driving/Parking
2.05.20--Wildlife shall not be disturbed or removed
2.05.20 -- Anyone caught inflicting harm or destroying wildlife species
2.07.01 -- Containers/Appliances not to be put out before 6 am day before or past 6 am day
after collection
3.01.01 -- Vehicle must be registered to an owner's property on the Ranch (plus cost to trace
for identification if the vehicle needs to be traced for a violation)
3.01.02, 3.02.02, 3.04.01 - Member Lane for current vehicle and vessel decals only
3.01.03-4 -- No "off-road vehicle" allowed on roads or common area
3.01.05 -- Operation of vehicle (motor, electric or battery) have valid license
3.01.06 -- Operation of vehicle (motor, electric or battery) observe speed limits
3.01.06 -- Operation of vehicle (motor, electric or battery) dangerous in School Zone.
Speeds of 25-35 mph = $70.00 per incident; over 35 mph = $100.00 per incident
3.01.07 -- Operation of vehicle (motor, electric or battery) complete stop
3.01.08 -- Operation of vehicle (motor or battery) dangerous or unsafe
3.01.09 -- Vehicle driving or parking on open space common area (non-designated
Rule or Regulation
Illegal Tenant
Illegal Entry
Aiding Illegal Entry
Altering Common Area
Curfew for Minors
Disturbing the Peace
Firearms and Weapons
Impounding of Dog
16
$150.00
$500.00
$500.00 to
10000
$ 25.00
$ 50.00
$ 50.00
$ 50.00
$ 50.00
$ 50.00
$ 25.00
$1,000.00
$100.00 to
$100.00
$500.00
25.00
$ 50 00*
$ 50.00
$100.00
$100.00
$ 50.00
$ 70.00 to
$100.00
$ 50.00
$100.00
$100.00 to
in Common Area/Trails
Driving/Defacing
Common Area
Driving While Intoxicated
Failure to Stop for Security
Reckless Driving
Vessel Not in HROA
System
Non-payment of Usage
Fees
Parking Violation/Handicap
Parking Violation
Illegal Camping
Storing of Vessel / Trailer,
Camper, RV
Lot - Stripped/Junked/
In-op Vehicle
Storing in Road Right-ofWay / Common Area
Driving/Parking
on Vacant Lot
Lot-- Parking / Storing
Lot - AEC Violation
AEC - New Home
Construction
AEC - General Approval
AEC - Construction
Lot -- Construction Curfew
AEC - Portable Toilet
AEC - Dumpster
Lot - Accessory Building
Lot - Canopy
Lot -- Illegal Sign
Lot - Groundcover /
Landscape / Maintain
Lot - Maintain Trees
Lot - Address Numbers
Required
Lot - Trash,
Rubbish, Garbage
Lot - Weeds / Debris
Campground - Violation
Campground - Illegal Fire
or BBQ
Marina-- Canopies
Marina -- Courtesy
Dock/Launch Ramp/Boat
Slips
Marina -- Parking
Marina -- Private Dock
Marina - Watercraft on
Shore
Marina
Pool, Court, Park, Play
Equestrian Rules
Abuse of HR Employee
Contempt of Court
-
roadways) $100.00 common area; $250.00 trails
$250.00
3.01.09 -- Vehicle defacing or trail blazing in common area, or damage to roads
$500 . 00*
3.01.10--Arrested (and convicted) by Law Enforcement on common area with HROA
Security assistance
3.01.11 - Failure to stop as directed by rotating amber light /blue light on Security vehicle
3.01.12 -- Used when there are three or more simultaneous/consecutive driving violations in
the same incident
3.02.01 -- Vessel must be registered to an owner's property on the Ranch (plus cost to trace
for identification if the vessel needs to be traced for a violation)
$500.00
$ 25.00
$500.00
$ 50.00*
3.02.03, 5.07-- Use of facilities (exclusive) without payment of fees (plus cost of fees)
$ 25.00*
3.03.01 -- Vehicle parked in designated handicap space without appropriate identification
3.03.02-6, 3.03.12-13 --Vehicle parked not to interfere with traffic. No double parking (parking adjacent
to another vehicle). Vehicle in no parking area. Oversized vehicle restrictions. Vehicle parked on
common area with intent for sale. Vehicle must be parked in designated spaces in paved parking lots.
Vehicle parking within the Association's unpaved portion of the right-of-way (off the road surface) is
intended for temporary purposes only not to exceed 72 consecutive hours without moving (does not
include the front yard setback maintained by the property owner).
3.03.03 - No camping on lot or common area without permission
$250.00
3.03.07-10
$ 25.00
--
Parking, storing of vessel I trailer, camper or RV not within regulations
$ 25.00
$ 25.00
3.03.11 -- No stripped down, junked vehicle parked or stored
$ 25.00
3.03.13 - Parking in unpaved areas restricted to seventy-two (72) hours. After seventy-two
(72) hours considered storing
$ 50.00
3.03.14 -- Vehicle driving or parking on owner's vacant lot
$ 25.00
3.03.15 - Park in designated areas, not on landscaping
4.01.01, 4, 5- Maintain job site; or project completion deadline
4.01.01 -- New home construction must receive approval from AEC Committee prior to
commencing work
4.01.01 -- Construction that must receive approval subject to a fine if commenced prior to
approval being granted
4.01.01 -- Failure to contain construction activities within the lot
4.01.02 -- Construction hours 7 am-9 pm, Saturday-Sunday 8 am-5 pm
4.01.04 -- A portable toilet is required on the job site during new home construction
4.01.04 -- A 'dumpster' (or trash trailer) is required on job site during new home construction
4.01.07-12-Accessory Building /Outbuilding regulations
4.02.02 - Canopies must be within regulations
4.02.06 -- Display of unauthorized signage
$ 25.00
$ 25.00
4.03.04, 7, 8 - Landscaping must be maintained including unpaved front easement
$ 25.00
4.03.05 - Minimum number of trees required to be planted and maintained
$ 25.00
4.04.01 -- Lot to have address numbers visibly displayed
$ 25.00
4.04.02 -- No trash, rubbish, garbage to be left on lot
$ 25.00
4.04.03 - Lots general clean-up and mowed for fire season
5.01.01 - Use of campgrounds to be within regulations
$ 25.00
$ 25.00*
5.01 .03 - Illegal fire or BBQ in campground area
$100.00
5.03.01-2 -- May not be erected overnight between 2 am and 5 am
$ 50.00
5.03.02-4-- No fishing, jumping, diving, swimming, loitering or bicycling on or around
courtesy dock, launch ramp or boat slips. Must cooperate with mussel inspection perrsonnel
$100.00
$500.00
$100.00
$100.00
25.00
50.00
50.00
25.00
25.00
25.00
$
$
$
$
$
$
5.03.06 -- Vehicle parked in Marina area without current decal
5.03.07 - Private dock violation. See 'Private Dock Policy'
$ 50.00
5.03.08 - Watercraft may temporarily be left on shore
$ 25.00
5.03.09 - Must cooperate with mussel inspection personnel
5.04, 5.05, 5.06 - Violation of posted or written rules
5.07.01 -- See Equestrian Rule Book
Vulgar, profane, abusive or threatening language or gesture toward an HROA employee
Judge may double any fine for a person who is contempt in court proceedings
All other violations in Membership Handbook (Rules & Regulations) or CC&Rs.
*Fi ne in addition to any cost of repair, cost of removal, cost to trace vehicle or vessel, or cost of fees not paid
17
$100.00
$100.00
$ 25.00
Varies
$250.00
Varies
$25.00
ASSOCIATION ' S POLICIES OF INSURANCE
This summary of the Association's policies of insurance provides only certain information, as required by Section
5300 of the Civil Code, and should not be considered a substitute for the complete policy terms and conditions
contained in the actual policies of insurance.
Any Association owner may, upon request and provision of reasonable notice, review the Association's insurance
policies and, upon request and payment of reasonable duplication charges, obtain copies of those policies.
Although the Association maintains the policies of insurance specified in this summary, the Association's policies
of insurance may not cover your property, including personal property, or real property improvements to
or around your dwelling, or personal injuries or other losses that occur within or around your dwelling.
Even if a loss is covered, you may nevertheless be responsible for paying all or a portion of any deductible that
applies. Association owners should consult with their individual insurance broker or agent for appropriate additional
coverage.
The Association also recommends that you inquire about Loss Assessment Coverage. The cost or an
endorsement for loss assessments is very minimal and provides protection to individual owners for any
extraordinary special assessments, such as excess liability over the Association's insurance proceeds or an
extraordinary expense incurred by the Association, allocated to the owners, through a special assessment (such as
special assessments to pay for rebuilding costs, which exceed insurance proceeds from an earthquake or fire loss
to common properties). The extent of liability coverage carried by your Association is as follows:
INSURANCE
2013-2014 INSURANCE SUMMARY FOR MEMBERS
CARRIER
LIMITS
DEDUCTIBLE
Per Claim
General Hazard
ResortGuard/
New Hampshire
General Liability
including Marina
& Owned Watercraft
'
$ 5,000
$ 1,000,000
$ 1,000 applies
only to Liquor Liability
and Employee
Benefits Liability
Automobile a) Liability
b) Phys Dmg
Owned Watercraft
Physical Damage
Docks, Slips
Directors & Officers
Liability
Excess Liability over
General, Auto, & D&O
Pols 's
Volunteers Accident Pol.
Pollution Liability
$ 2,308,500
"
CNA
a)$1,000,000
b)Actual Cash
Value
6,500
$
350,000
$
$ 2,000,000
a) none
b) $1,000
$ 1,000
$ 1,000
$10,000
ResortGuard/
New Hampshire
$10,000,000
No Deductible;
$10,000 'SIR"
National Union
Endurance
500,000
$
$ 1,000,000
$
100
$10,000
Earthquake & Flood Insurance: not purchased.
18
EXPIRATION
07/01/14