Bakersfield Association of REALTORS® Policies

POLICIES

Bakersfield Association of REALTORS®

FINANCIAL MANAGEMENT Managing the financial affairs of the Bakersfield Association of REALTORS®, Inc., requires prudent management, proving maximum protection to members’ money within established guidelines.

(11/03) Association to support Better Business Bureau, Chamber of Commerce, Hispanic Chamber, Kern County Farm Bureau and Kern Tax. (Classified as dues/ subscriptions)

(11/03) Association to provide allocation of $5,000 from General Operating Budget for charitable contributions.

(10/06) Budget expenditure limit of $2500 not requiring Board of Directors approval.

(3/08) Trustees for employee pension plan to be Executive Officer and two (2) members from the Association current Executive Board, each serving a minimum of three (3) years with staggered terms. (6/09) Pension Plan: Association / GEMLS BOD concurred assuming responsibility for the Fidelity and NextStep fees associated with the employees 401K Pension Plan, according to their established proportionate share (Assoc. 35% / 65% GEMLS). Target Wealth Management fees to continue to be the responsibility of participating employees.

(12/13) The Bakersfield Association of REALTORS® (the Association) and its wholly owned subsidiary, the GEMLS share personnel, office space, utilities, equipment, supplies and other ordinary and necessary business expenses. The Association and GEMLS shall share common expenses on a fair and equitable basis. Costs of personnel shall be based on the time each personnel spends on Association and GEMLS matters. Allocations of common costs and expenses may be based on reasonable estimates and determined by and reviewed by the Strategic Planning and Finance Committee. The Association may charge GEMLS reasonable rent on the portion or percentage of the building reasonably determined to be used by GEMLS as determined by the Strategic Planning and Finance Committee.

(12/13) Annual Audit: The Association will have an outside CPA conduct an annual audit of the corporation’s finances, which may be the same CPA conducting the wholly-owned subsidiary’s, the GEMLS’ audit.

(BAK 4/10/19) Directors in agreement with Corporate Attorney and CPA, affirmed conculsion not to consolidate Association’s and Foundation’s financial statements for audit purposes.

(BAK 4/10/19) – Directors approved establishing a Morgan Stanley account for long-term investment funds with a Risk Profile Level #3. Operational Funds to be maintained at a local

institution at best interest bearing instrument.

(BAK 6/19/19) – Directors approved designation of signors for establishment of Investment Account with Morgan Stanley as follows: CEO, President Elect, Vice President and Secretary Treasurer.

(BAK 6/19/19) - Policy adopted in which notice of all general and special session meetings, along with agenda and support documentation, shall be distributed 72 hours prior to the scheduled date of the meeting to ensure participants have an adequate opportunity to prepare.

(BAK 6/19/19) – Poloicy adopted to Increase lease fees for GEMLS Occupancy, calculated at $1.18/ sf for our 10,000sf building, utilizing 65% of space (previously calculated at $.77/sf) retroactively from July 1, 2018 to June 30, 2019. An increase of $32,040 ($60,000 up to $92,040).

(BAK 6/19/19) – Policy adopted approving FFE (Furniture, Fixtures and Equipment) assessment to GEMLS in amount of $30,000 to cover shared furniture, equipment and computers at GEMLS 65%. Estimated for budget purposes with a year-end adjustment to actual, calculated at 65% of annual depreciation for capital assets in use (irrespective of book value) during that year. FFE assessment retroactive July 1, 2018 to June 30, 2019.

ADMINISTRATION/STAFF (9/03) Staff granted 21 days of vacation after 20 years of employment. (5/05) Employee retirement contribution/allocation changed to two entry dates per year (January and July) and add “will be eligible if employee retires during the plan year”.

(12/13) Adoption of Record Retention and Destruction Policy (copy attached).

(12/13) Software Licenses: Any software installed in the organization’s computers must have appropriate licenses.

AWARDS COMMITTEE/ RECOGNITION (7/98) (7/10) Members will be able to submit nominations for Affiliate of the Year Award. One honoree will be selected by a polled vote of the Board of Directors and Committee Chairs. Award to be made to individuals, not firms. Eligible persons will be associated with Affiliate offices. Award to be announced at Inaugural. Judging based on: 50 points professional reputation, knowledge of industry and service to our clients; 30 points services and contributions made to the Association, and 20 points services and contributions to the community.

(10/98) (7/10) Title of awards program to be R&S Awards. Judging of Salesperson of the year based on: 30 points service to the real estate industry, 20 points cooperation with other offices & REALTORS®, 20 points number of sales, 20 points professional reputation, 10 points service and contributions to community. Judging for REALTOR® of the year based on: 40 points professional reputation; 30 points service and contributions to organized real estate, 30 points service & contributions to community, state and nation.

GOVERNANCE (2/05) Adopt amendment to Article IX of Bylaws, Dues and Assessments, regarding computation of dues for the Designated REALTOR® to comply with NAR mandate. Our bylaws provide that the BOD, at any regular or special meeting, may approve amendments to the bylaws which are mandated by NAR policy.

(1/08) Board of Director’s agenda to provide opportunity for member comment at beginning of Board meeting.

(8/10) Association Bylaws Article IX Section 3 – Dues payable amended to allow for local dues to be paid on a fiscal year basis (C.A.R. and NAR portion of the dues to continue on a calendar year basis)

(8/10) Directors unanimously approved recommended policy and procedure changes to nominating process to allow for contested elections.

(11/12) Conflict of Interest Policy Adopted

(1/13) Board & Leadership Guidelines (including Responsibilities, Engagement) as set forth in document presented on 1/29/2013.

(1/13) Confidentiality of Documents and Conversations as

set forth in Bakersfield Association of REALTORS® Confidentiality Agreement.

(12/13) Antitrust Compliance: The Bakersfield Association of REALTORS®, Inc. has a policy that the corporation and its members fully comply with California and United States antitrust laws. The Association will provide information to members on real estate antitrust issues on a regular basis, which will occasionally be published in the Bakersfield Association REALTOR® Magazine.

(12/13) Authority Policy: It shall be the policy of this corporation that any communications on behalf of the corporation shall be official, at the direction of the president, board or staff. No statements shall be made, either verbal or written that conflict with the position or policy of the corporation. Leadership should understand, that by virtue of their position, that statements may be perceived by the public as official and on behalf of the corporation. To control official communications, stationary and business cards shall be for the use of the elected president and staff only. Members of the board and committees may not use the corporation’s stationary. Staff will prepare letters sent on behalf of the organization with a copy remaining in the office. Exceptions may be made to the policy so long as the purpose of the letter is made known and approved by the board in advance.

(12/13) Association Policy Document adopted. (3/12) Bylaws Amended: Article 10, Section 4. Limited Number of Directors from One Firm. The number of persons from the Board of Directors from any real estate brokerage firms shall be limited to two. In the vent that any Director (including and Officer) during the term of office becomes employed or affiliated as a broker, owner, or independent contractor with a real estate brokerage firm that already has two persons currently serving on the Board of Directors, then the three directors from that firm shall meet and determine which of the three shall resign as a Director within thirty (30) days of the disqualifying event. If one of the three directors fails to resign within the thirty day period, then the office of the director who changed firms shall be declared vacant and the replacement director shall be appointed as provided in Section 7 of this article III. For purposes of this Section 4, all real estate brokerage firms with separate office locations which either (a) engage in joint marketing activities with respect to agents and/or listings, (b) jointly recruit agents, and/or (c) do not compete against one another in the same manner as independent firms, shall be treated as a single real estate brokerage firm even if the two firms are separate legal entities and/or have different Designated REALTORS® .

REALTOR® GOVERNMENT RELATIONS (RGR) (10/12) 2013 NAR Golden “R” Renewal in the amount of $2000, regardless of level of recognition received. (Golden R renewal is $5000; Sterling R is $1000). (2009 Association became NAR Golden “R” at initial level of $5000 with $2000 annual renewal.)

(6/16) Crystal R Renewal, $2,500

MEMBERSHIP (12/01) Association to discontinue selling real estate forms to the public.

(4/04) Association to open on Monday mornings at 9 a.m. to allow for one-hour staff meeting.

(9/08) Dues billing to include REALTOR® RAF fair share and Housing Affordability Fund above the line. January 10 late fee held over to end of month, at which time, $150 late fee to be assessed for unpaid dues.

(2/09) Effective with 2011 dues billing cycle, the Association will recover from our members, a late fee assessed by C.A.R. for late payment of the C.A.R. dues.

(1/08) Upon member’s cancellation of membership for non-payment, if reinstated within one (1) year’s time, a fee of $100 for local and $150 for NAR/ C.A.R. will be assessed. If a member’s dues are not paid by January 31, of any given year, the licensee’s status will be changed to nonmember sales and the broker will be assessed the required fees. Broker will have 30 days to pay outstanding non-member sales fees or return their license. If correction is not completed within 30 days, office will be subject to suspension until in compliance with Association bylaws.

GRIEVANCE/PROFESSIONAL STANDARDS (12/02) Association to continue sending notice of ethics/ arbitration complaints against salespersons to their current Designated REALTORS® .

(9/04) Establish cooperative agreements with neighboring association(s) (Fresno/Tulare, Antelope Valley, Tehachapi and Lake Isabella) and be bound to and to enforce any disciplinary action rendered against one of our members by the association that agrees to cooperate. If legal expense incurred, the association whose member(s) are involved in the complaint would need to reimburse the cooperating association. (12/09) Request for Hearing Continuance assessment increased to $500 for second request.

(2/10) Administrative fee charged to respondent if found in violation of a Code of Ethics Article increased from $250 to $500.

(06/11) If a member is found in violation of the Code of Ethics a second time within a three (3) year time period, the member’s name, the fact that the member has been found in violation of the Code of Ethics, the Article(s) violated, and the discipline imposed, shall be published in the official communication vehicle of the Association. Such publication shall not include the name of the firm the member is, or was, licensed or affiliated with. In cases where the member’s name is similar to another Association member’s or MLS Participant’s or Subscriber’s name, the member’s real estate license number or office address (or both) may also be published.

(8/13) Ethics Citation Policy Adopted

(8/13) Ethics Request for Review/ Rehearing increased from $250 to $500

(8/13) Arbitration Processing Fee & Request for Review increased from $250 to $500

(12/13) Ethics Citation Fine Schedule Adopted Adopted 12/3/2013