Legal Expenses By Kirk Wooldridge, General Manager OVER THE COURSE OF A PAST FISCAL YEARS, the Tahoe Keys Property Owner Association (TKPOA) Board of Directors has faced a variety of legal issues ranging:
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Tahoe Keys Marina & Yacht Club (TKM&YC) violations of the 1991 Superior Court of California – Stipulation Agreement No: 1225 TKM&YC legal cases filed in El Dorado Superior Court SCLT – 4914, SC2020-0148 and SC2017-0140 Lighthouse Shores Claims of violations of the El Dorado Superior Court of California – Court Order SV92-0066 Property Owner and Commercial Water Company Collection Activities Compliance with the Davis-Stirling Act Civil Code Amended and Restated – BYLAWS Project Amended and Restated – Declaration of the Covenants, Conditions and Restrictions (CC&Rs) Project Tahoe Keys Water Company – Rule and Regulations Project Employment Law Claims Perchloroethylene (PCE) Litigation Investigation and Strategy Environmental Law Strategy for the TKPOA required Environmental Impact Report (EIR) for California Environmental Quality Act (CEQA) and Environmental Impact Statement (EIS) for National Environmental Policy Act (NEPA) 1991 Community and Single-Family Home Property Owner Dock Disputes Community Ink Publisher – Legal Claim and Arbitration Fire and Water Damage Claims Architectural Control Rules and Operating Rules Enforcement Legal Strategy against external issues that may impact the Association El Dorado Superior Court – Small Claims Court Cases filed against the Association or against the TKM&YC
As a result of these issues the TKPOA like most California Large Scale Associations from time to time and on an ongoing basis require knowledgeable legal counsel representation. To that end, the TKPOA Board of Directors, Finance Committee and TKPOA Staff struggle each year to determine the association’s budget for legal expenses. The amount allocated, whether $5,000, $10,000, $20,000, $40,000 or more, will depend on the anticipated number of legal issues. Unfortunately, legal expenses are not as predictable or as steady as insurance or utility expenses. Associations could go an entire year with no legal expenses and the next Keys Breeze
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year spend $50,000 or more. The more prudent course is to properly fund this expense line item each fiscal year and hope it will not be needed. The Board of Directors is ultimately responsible for the management and conduct of the affairs of the Association. As of December 16th, 2020, the newly adopted BYLAWS, give the Board of Directors authority through Article 8 – Board of Directors Authority: Section 8.14 Other Powers and Duties. The Board shall have the power to exercise for the Association all powers duties and authority vested in or delegated to the Association and not reserved to members by other provisions of the Governing Documents and undertake any action on behalf of the Association as the Board shall deem necessary or proper in the furtherance of purposes and powers of the interest o the Association and its members. In carrying out this Section 8.14 the Board of Directors will need to consult Professional Advisors such as an Attorney or Legal Firm: 8.2 Consult Professional Advisors. The Board shall have the power to consult with, seek the advice of, and reasonably rely on the advice of attorneys, accountants, and other professionals in carrying out the Board’s authority and responsibility under the Governing Documents and the law, and to pay for such professional services. Many of these legal issues are discussed and documented in the Board of Directors - Executive Session per the Davis-Stirling Act Civil Code and the TKPOA BYLAWS as provided: 6.10 Executive Session. To the fullest extent permitted by law, including Civil Code section 4935, the Board may meet in executive session to confer with legal counsel or to discuss and/or vote upon personnel matters, Member discipline, litigation in which the Association is or may become involved, matters that relate to the formation of contracts between the Association and others, and for the purpose of meeting with a member, upon such member’s request, regarding the member’s payment of assessments. Over the past seven years there have been many legal issues that have confronted the Board of Directors, the timing of these issues is never ideal. In addition to this the Board of Directors has also pro-actively taken on legal issues that have for past Board’s not been a priority to CONTINUED ON PAGE 14
APRIL 2021
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