Notice of Board of Directors Vacancy

PROPERTY OWNERS ASSOCIATION 356 ALA WAI BOULEVARD • SOUTH LAKE TAHOE CA 96150 530-542-6444 • TAHOEKEYSPOA.ORG

February 24th, 2020

The Tahoe Keys Property Owners Association (TKPOA) has one vacancy on its seven-member volunteer Board of Directors and will be accepting Nomination Forms from qualified members in good standing of the Tahoe Keys Property Owners Association. The Board of Director vacancy is for the remainder of the 2019–2020 Board Term until September 2020.

Interested applicants must submit a Self-Nomination Form and a resume showing relevant experience no later than 4:30 p.m. on March 16th, 2020 in order to be considered. Forms and resumes can be submitted by mail to 356 Ala Wai Boulevard, South Lake Tahoe, CA 96150, in person at the TKPOA Office at the same address, or by email to ALaTella@tahoekeyspoa.org. Please call (530) 542-6444, ext. 223 for further information.

A subcommittee of the Board of Directors may interview interested applicants between April 13th, 2020– April 17th, 2020 and they may identify the top three candidates for interview by the full Board of Directors at its April 18th, 2020 Executive Session.

An appointment to fill the vacant director position, as allowed under Article VII, Section 6 (e) of the TKPOA Bylaws, will be considered at the regular meeting of the Board of Directors to be held on April 18th, 2020 at 2:00 p.m., at 356 Ala Wai Boulevard, South Lake Tahoe, CA 96150.

TKPOA BYLAWS ARTICLE VII Board of Directors Section 6.Vacancies on Board of Directors. (e) Filling of Vacancies: Vacancies on the Board of Directors shall be filled by a majority vote of the remaining directors though less than a quorum, or by a sole remaining director unless the vacancy is created through removal of a director in which case the vacancy shall be filled by the affirmative vote of a majority of the Members represented in person or by proxy at a duly held meeting of the Members or by written ballot in accordance with Article IV, Section 5 hereof.

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Minutes are not required or recorded for these meetings.

The Board of Directors have only scheduled Forums when they feel there are important topics for discussion or a TKPOA Committee has an important topic to present. The TKPOA is communicating these Town Hall Forums, the topics and the dates scheduled via: the Keys Breeze, flyers posted at the Pavilion, on the TKPOA website www.tkpoa.com, and through our email eblast list so it is important that you have a current email listed in our data base to receive these messages. Please contact the front desk to update or add your email to our data base and receive email eblasts from TKPOA. The TKPOA VHR Permit Program started at the March 18th, 2016 Board of Directors Regular Open meeting, when the Board adopted the “Owner, Renter, and Vacation Policy, Rules, and Regulations.” This policy requires all TKPOA property owners that utilize their property as a Vacation Rental, to pay an annual fee for a TKPOA VHR Permit. These TKPOA property owners are also required to obtain a City of South Lake Tahoe

development process. During this process decisions are required to be made to provide a “net zero” Annual Budget and provide the level of service to all TKPOA property owners as agreed upon by the Board of Directors. The budget process starts in June and ends in October each year with numerous meetings from Finance Committee Meetings, Board Meetings, and Joint Board Meetings with the Finance Committee and Regular Open Board Meetings that are open to all property owners to attend.

TKPOA VACATION HOME RENTAL PERMITS 2017 Actual 2018 Actual 2019 Budget 2019 Actual 2020 Budget

VHR PERMITS – TOWNHOMES

VHR PERMITS – SINGLE FAMILY HOMES

VHR PERMITS – TOTAL

108 100 94

73

94

202 190 181

157

181

310 290 275 230 275

(CSLT) Vacation Rental Permit. The goal of this program is to increase the enjoyment of the Tahoe Keys for all property owners, their family members, and guests. Notification of the TKPOA VHR Permit Annual Fee is provided each year to the TKPOA members through the annual billing and the Annual Disclosure mailing. If members join during the calendar year they are still responsible for the entire fee, and will not be offered a prorated fee. TKPOA property owners who have been identified as a VHR based on the CSLT’s Vacation Rental Permit list will also receive a letter, invoice and additional information on TKPOA’s VHR Permit Program. There are a number of important issues the TKPOA Board of Directors, Finance Committee and TKPOA Staff review each year as part of the Annual Budget Since the City of South Lake Tahoe VHR program started in 2016, the TKPOA has monitored and learned the activities and the effect this program has on the TKPOA as a business and on our property owners use and enjoyment of their property. Needless to say, it has been in evolving process with a lot of moving parts and ongoing changes that have brought us to this point.

The Board of Directors approved a $700 Annual Fee for 2020 at the October 19th, 2019 Board of Directors meeting. The Vacation Rental Fee of $700 per property is for the administration and support of vacation rental properties, enforcement of the “Owner, Renter, and Vacation Policy, Rules and Regulations,” and to defray the increased costs of operating and maintaining TKPOA’s Common Amenity Facilities.

TAHOE KEYS PROPERTY OWNERS ASSOCIATION Year Cost Per Unit Period 2016 125 6 Months 2017 250 YEAR 2018 350 YEAR 2019 400 YEAR 2020 700 YEAR

The TKPOA Board of Directors has implemented this annual fee based on the provisions of the Davis-Stirling Act Civil Code section§5600. Duty to Levy Assessments; Fees to Defray Costs. Pursuant to this code section, the Association is authorized to assess fees to offset costs, as it has done in this instance. The leading Court opinion of Watts vs. Oak Shore Community Association supports the authority of California community associations to assess charges or fees based upon a good faith estimate of the costs to the association. An association is authorized to adopt and impose fees for property owners who engaged in short-term rentals. “An association shall not impose or collect an assessment or fee that exceeds the amount necessary to defray the costs for which it is levied.” California Case Law has allowed California Associations the ability to provide a good faith estimate that would be sufficient to determine this charge or fee.

The Watts opinion specifically details the Courts support for an association’s ability to set rental fees. In fact, the Court rejected a similar attempt to label a “garbage fee” as a Civil Code Section 4355 Operating Rule. “The garbage fee is not a regulation. It is simply a cost the Association passes through to the owners of the developed lots. Watts claims the Board adopted or increased fees and fines by simply including them in the budget. But he cites no authority prohibiting the Board from adopting or increasing fees and fines in that manner. ”Based upon the above case law and existing Civil Codes, a “good faith estimate is sufficient to determine a charge or fee.”

The TKPOA Managers and Supervisors utilized the following documentation and TKPOA systems to determine the current and past “Good Faith Estimates” over the years: • Based on tracking with our Recreational Pass Computer System, and Pool Sign In Sheets • Based on tracking with the Security Reporting Security System SAL or Security Activities LogBased on tracking frequency of recordable events manually in certain departments that are reported on monthly

• Based on percentage allocation of work load and time spent • Based on reporting for PAYCHEX time keeping system • Based on work order reporting, expense tracking from our TOPS Property Management System, and monthly financial reporting • Based on our Accounting Reporting and Reserve Data Based Management Software

The 2020 VHR Permit Fee “Good Faith Estimate” was discussed and reviewed with the TKPOA Board of Directors prior to setting the 2020 VHR Permit Fee of $700, with direction from the Board to review and reconcile the costs as presented by the TKPOA staff. A copy of this TKPOA 2020 VHR Permit Fee – Good Faith Estimate, and the Town Hall Forum Presentation is available on the TKPOA website at www.tkpoa.com, under the Documents File, Finance Committee - Budgets, and Budget 2020 File.

The Good Faith Estimate and procedural approval of this fee have also been reviewed and approved by the Association’s legal counsel.

The Board of Directors will review the 2020 VHR Permit Fee of $700, during the January–April time period as a noticed agenda item for the Regular Open Board Meetings at 2:00 p.m. on Saturday. [January 18th, 2020, February 15th, 2020, March 21st, 2020 and April 18th, 2020]. As of now, the Board is requiring the payment of $400 for the 2020 VHR Permit Fee by December 31st, 2019. The remaining $300 of the 2020 VHR Permit Fee of $700 will be under review and, if approved, will be due by April 18th, 2020. The Board of Directors is also discussing scheduling another Town Hall Forum in late March or early April 2020.

To receive additional information on TKPOA’s VHR Permit Program please contact Operations Manager Heather Blumenthal at (530) 542-6444, ext. 228 or via email at hblumenthal@tahoekeyspoa.org. You can also contact the TKPOA front desk at (530) 542-6444 Monday through Sunday 8:30 a.m.–4:30 p.m.