Keys Breeze August 2018

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AUGUST 2018

Tahoe Key s P r oper t y O wne r s A s s oc ia t ion

Board of Directors Election PG. 12

SEEKING VOLUNTEERS FOR ANNUAL HOMEOWNER PICNIC PG. 25 PROPOSED RULES AND REGULATIONS FOR WATER SERVICE PG. 27 Lighthouse Shores Pedestrian Gate and Beach Access PG. 10 356 Ala Wai Boulevard South Lake Tahoe, CA 96150

Tahoe Keys Property Owners Association

PRSRT STD U.S. POSTAGE PAID RENO, NV PERMIT NO. 200


Tahoe Keys Specialist You Know Me. And I Know the Tahoe Keys.

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1978 Aloha | $1,120,000

1991 Aloha | $2,375,000

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2003 Kokanee | $971,000

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16 Lighthouse Shores | $5,750,000

1923 Marconi | $1,095,000

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425 Emerald | $930,000

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609 Danube | $400,000

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1990 Kokanee | $2,150,000

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1987 Aloha | $2,100,000

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2021 Kokanee | $1,230,000

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president’s letter Hi all,

T

Pickleball Court Is Now Open!

17

Dealing with Problem Boards

18

Annual Homeowners Picnic

19

Accounting Report

22

Seeking Volunteers for Homeowners Picnic

25

his will be my last president’s update. First I would like to thank all who have supported me in the last four years. My entire time on the board, I feel I have always listened to everyone and then try and make the best decision for the benefit of 1,529 homeowners. This doesn’t always go the way everyone wants but I feel that is what I am here to do. I don’t believe a board member should ever try and push their own personal agenda. As you have seen, I have been someone who feels important matters should go out for a vote of the members. This is your community. I believe in following the rules, even though I might not agree with them all, they are here for the betterment of our "...I HAVE BEEN SOMEONE community. As I always say, the only thing I WHO FEELS IMPORTANT have personally gotten out of being a board member is a headache. MATTERS SHOULD GO I hope the new and future board members will continue to work hard to OUT FOR A VOTE OF THE make the Tahoe Keys a wonderful place for all. I think our property values are at the MEMBERS. THIS IS YOUR highest point and we need to keep them there. COMMUNITY." There is still a lot of work to be done. It truly takes a lot of hours and a commitment to be a board member. We don’t get paid, we put in a lot of hours and we take a lot of abuse when people are misinformed or don’t agree with us. I hope people in the future will take this very seriously before committing. I listened to some of the candidates running for the board the other

TKPOA Water Department Customer Letter

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CONTINUED ON PAGE 6

Rules and Regulations for Water Service

27

President’s Letter

3

2018 Board Actions Summary

4

Important Notice

6

Calendar 2018

7

STAT Program Graduates

8

ACC Rule of the Month: Sign Regulations

9

Lighthouse Shores Pedestrian Gate and Beach 10 2018–19 Board of Directors Election and Town Hall Forum

12

Notice of Annual Meeting

14

Where in the World is Keys Breeze? 15 Notice of Change in Operating Rules— Text of Proposed Changes 16

The Keys Breeze Magazine PUBLISHING DISCLOSURE NOTICE The Keys Breeze is the official monthly publication of the Tahoe Keys Property Owners Association (TKPOA), which is located at 356 Ala Wai Blvd., South Lake Tahoe, CA 96150. Each membership parcel receives one subscription to the Breeze mailed to a domestic address. Cost to produce and distribute this publication is offset by advertising revenues and budgeted funds. The inclusion of advertising in this publication does not constitute an endorsement or recommendation by the Tahoe Keys Property Owners Association or its Board of Directors of the projects, services or views contained therein FOR ADVERTISING OPPORTUNITIES please contact Kathy Hess-Slocum at Just Imagine Marketing and Design (775) 846-5656, kathy@justimaginemktg.com. COVER PHOTO CREDIT: General Manager Kirk Wooldridge Printed on recycled paper with soy-based inks.

IS THE OFFICIAL PUBLICATION OF THE TAHOE KEYS PROPERTY OWNERS ASSOCIATION

ADMINISTRATIVE OFFICE HOURS

8:30 a.m. to 4:30 p.m. Daily

Kirk J. Wooldridge

General Manager, Ext. 224

Rick Robillard, PE

Water Co. Manager, Tahoe Keys Water Company (530) 542-6451

Front Desk Attendant Dial 0

Linda Callahan

Architectural Control Dept. Manager, Ext. 239

2017–2018 BOARD OF DIRECTORS

Tom Callahan

Pat Disney, VICE PRESIDENT

Maintenance Manager, Ext. 226

Bonnie Halleran, PRESIDENT Jim Siegfried, TREASURER

James Brooks

Natalie Collin, SECRETARY

Bill Spicer

Sean Ward, DIRECTOR

Pool Supervisor (530) 545-4124

Operations Manager, Ext. 228 |

Accounting Manager, Ext. 227

Project Coordinator/ Property Manager, Ext. 241

TAHOE KEYS PROPERTY OWNERS ASSOCIATION

Keys Breeze

Administrative Assistant, Ext. 223

Don Havard

356 Ala Wai Boulevard South Lake Tahoe, CA 96150 (530) 542-6444 p (530) 541-2521 f tkpoa.com

Heather Houston

Jo Ann Wilson

Security (530) 545-0847

AUGUST 2018

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Jim Woller, DIRECTOR John Gonzales, DIRECTOR


ACTIONS SUMMARY 2018 BOARD SPECIAL EMAIL EXECUTIVE SESSION

(JUNE 20TH)

EXECUTIVE SESSION / BOARD OF DIRECTORS MEETING (JULY 21ST)

By Heather Houston, Operations Manager and Jo Ann Wilson, Administrative Assistant

JUNE 20TH — SPECIAL EMAIL EXECUTIVE SESSION BOARD ACTIONS z Approved: Four Pickleball Courts at Pavilion Beach Tennis Court. Zaino Tennis Courts Inc. to resurface and install four Pickleball courts for $6,000 to be funded out of the Common Reserves Fund.

JULY 16TH — EXECUTIVE SESSION BOARD ACTIONS z Reviewed: Seven personnel matters. z Reviewed: One member disciplinary matter. z Reviewed: 16 legal matters, including two ongoing issues with the Tahoe Keys Marina and Yacht Club (TKM&YC). z Reviewed: Status of 20 contracts. z Approved: June 16th, 2018 Executive Session Minutes. z Approved: Review of Agenda Scheduling for TKPOA Board of Directors Meeting on September 1st, 2018. z Approved: Reviewing the 2019 Financial Budget Schedule and Deadlines in August. z Approved: Board Budget Sub-Committee for 2019 Budget to include Jim Siegfried, Bob Cliff, and John Gonzales. z Approved: Contract to be executed as needed for California Tahoe Conservancy (CTC) Corpyard – Geotechnical Investigation – Marvin E. Davis and Associates, Inc for $8,550 to be funded from the Common Reserves. z Approved: An Additional $6,200 for Sugar Pine Engineering for CTC Corporation Yard Construction Plans Contract to be funded from the Common Reserve. z Approved: Contract for TKPOA Member Online Payment Services with PayLease vendor services. z Approved: Contract for Marvin E. Davis Engineering and Project Management Support for the Shoreline Protective Project for counsel. $14,116 to be funded from the Common Reserves. z Approved: TKPOA Staff to contract for new legal counsel for general matters with Richardson Ober Professional Attorneys.

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JUNE 21TH — BOARD OF DIRECTORS MEETING BOARD ACTIONS z Approved: TKPOA Tennis Court/Pickleball Rule Change for a 30 day member review period for publishing. z Approved: TKPOA Water Service Rules and Regulations for property owners and commercial customers for 30 a day member review period for publishing or mailing. z Approved: Lighthouse Shores (LHS) Road Paving Project with LHS funding the entire project. z Approved: Tahoe Keys Lagoon Restoration Project – Application for Approval to Reduce Aquatic and Nuisance Plant Species for the Tahoe Regional Planning Agency (TRPA) EIR/EIS Application. z Approved: Reserve Expenditure Request (RER) Cove 2 Upper Deck Railing and Painting. z Approved: Reserve Expenditure Request (RER) Cove 3A Boat Dock Painting. z Approved: Reserve Expenditure Request RER) Islander lll Roof Treatment and Repair. z ACC Appeal: Denied homeowner appeal of ACC Boat Dock Application for 2012 Marconi Way. z ACC Appeal: Denied homeowner appeal of Delinquent Account Disciplinary Determination. z ACC Appeal: Denied homeowner appeal of ACC Determination for 467 Lido Drive.

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PRESIDENT’S LETTER |

continued from page 3

night and have many concerns about some of them. Some seem to want to take us back instead of moving us forward. They feel spending any money is bad even if it will benefit the Keys. They were against a lot of the things that the majority of members voted in favor of. They don’t understand what a reserve account is for and want special assessments instead. Special assessments are for unplanned or emergency projects. Reserves are for planned projects which both the CTC Land Exchange and the Beach Protective Structure projects were. Some people want to undo all that has been done to enhance our properties based on their 30 year old information. This all should concern the majority of you, as it will affect you and your property values in the future. Some also want to reduce staff and do not respect our general manager. This has caused issues in the past and is how we lost many good general managers and staff members. I would be happy to share my concerns and thoughts to anyone interested. Please contact the front desk on how to reach me. I will continue to go to meetings and stay informed. I hope I have served you well. Thank you, Bonnie Halleran,

TKPOA BOARD PRESIDENT

TO TAHOE KEYS PROPERTY OWNERS ASSOCIATION (TKPOA) OWNERS and GUESTS The Pavilion Beach will be closed from Monday, July 23rd, until Friday, September 14th, 2018 from the TKPOA Pier to the West Property Line. This is for your safety, and non-interference with the Pavilion Beach Shoreline Protective Structure Project. If you have any questions, or concerns you may contact: TKPOA Security at (530) 545-0847 Jim Brooks at (530) 542-6444, ext. 241 Tom Callahan at (530) 542-6444, ext. 226

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NOTICE OF ANNUAL MEETING 6

In accordance with the Bylaws and the adopted Election and Voting Rules of the Tahoe Keys Property Owners


AUGUST 2018 6 6 10 18 18 20 21 29 31 TBD

ACC Meeting Water Quality Committee Meeting Waterways Usage Committee Board of Directors Executive Session Board of Directors Regular Meeting ACC Meeting Finance Committee Meeting Finance Committee/ Budget Second Draft Cove Advisory Round Table Meeting Town Hall Forum

9:00 a.m. 10:00 a.m. 9:00 a.m. 9:00 a.m. 3:00 p.m. 9:00 a.m. 10:00 a.m. 10:00 a.m. 1:00 p.m. 6:00 p.m.

CALENDAR 2018

SEPTEMBER 2018 1 2 2 5 14 15 15 17 18 TBD TBD TBD

Annual Election Meeting – Results announced at 1pm 9:00 a.m. 55th Annual Membership Meeting 9:00 a.m. 55th Annual Homeowner Picnic 12:00 p.m. ACC Meeting 9:00 a.m. Annual Meeting of Board of Directors (Organizational Meeting) TBD Board of Directors Executive Session 9:00 a.m. Board of Directors Regular Meeting 3:00 p.m. ACC Meeting 9:00 a.m. Finance Committee Meeting 10:00 a.m. Town Hall Forum 6:00 p.m. Water Quality Committee Meeting TBD Waterways Usage Committee TBD

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NOTE: ALL MEETINGS WILL BE HELD AT THE TKPOA PAVILION, 356 ALA WAI BLVD., SOUTH LAKE TAHOE UNLESS OTHERWISE NOTED.

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STAT Program Graduates By Linda Callahan, Architectural Control Department Manager

A

nother group of Tahoe Keys Property Owners Association (TKPOA) employees has participated in the South Tahoe Action Team (STAT) training held by the South Lake Tahoe Fire Department (SLTFD). The Program is designed for the training of community members by the SLTFD as responders during times of crisis. Curriculum includes eight hours of instruction taught by members of the SLTFD in instruction of the Incident Command structure, emergency first aid, lifting and moving techniques, use of fire extinguishers, flood safety and building collapse. Graduates may be called upon in times of a natural disaster, large scale emergencies and in times of need

within the South Lake Tahoe area. Living in the Tahoe Basin brings with it the potential for large scale emergencies such as high winds, heavy snow, flooding, wildfire and even avalanche in certain areas. These types of emergencies will overwhelm local resources. The STAT program is the first of its kind in the Tahoe Basin. TKPOA employee STAT participants for the recent session are: Greg Turle (Architectural Control) and Mario Alvarez (Landscape). These employees join a group of existing TKPOA STAT members. The next STAT class will be offered in the fall of 2018. We will publish the dates as they become available. TKPOA members are encouraged to participate.

CLASSES CLASS OF JANUARY 2016 Tom Callahan, Facilities Manager Jim Yorkey, Maintenance Staff Gary Kirchubel, Security Staff Kirk Wooldridge, General Manager CLASS OF FEBRUARY 2018 Linda Callahan, ACD Manager Don Havard, Accounting Manager Daniel Armijo III, Security Staff Mark Peterson, Security Staff Mark Ford, Security Staff PAST CLASS Gail Johnson, Security Staff

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ACC Rule of the Month: By Linda Callahan, Architectural Control Department Manager

Sign Regulations C) Rental signs for long-term leases, or for terms longer than one month, are allowed in the window for solicitation of long-term tenants.

15.08 SIGN REGULATIONS: A) No more than one “For Sale” sign per property is allowed, except that property as water frontage, in which case an additional “For Sale” sign may be placed in the window on the water front side. Signs shall not exceed 216 square inches or 12” x 18”. B) Townhouses may have one sign located over the garage or in the window except properties with water frontage, which may have an additional sign in the window of the water front side. Signs shall not exceed 216 square inches or 12” x 18”.

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D) Temporary “Open House” signs are permitted between 10:00 a.m. and 6:00 p.m. daily. Permanent “Open House” signs are not permitted. E) No signs of any kind are permitted on the medians of Tahoe Keys Blvd., Ala Wai Blvd., or 15th Street F) One political sign, no larger than 216 square inches in size, can be placed on an individual’s property, thirty (30) days prior to an election date and must be removed the day after the election date.

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LIGHTHOUSE SHORES PEDESTRIAN GATE AND BEACH By Kirk Wooldridge, TKPOA General Manager

TKPOA property owners using the photo Member Access card issued by TKPOA. This card is not transferrable; it is not to be loaned or used by anyone other than the property owner to whom it is issued. If you have lost your card or wish to have another one issued, please visit our office. • There are no dogs, or other pets or bicycles allowed, no exceptions. This is clearly posted on the gate and there are bike racks inside the gate. • Access through this gate is allowed from 7:00 a.m.–9:00 p.m. except during the summer, during which time the hours will be extend to 10:00 p.m.

A

s summer is approaching we would like to remind all property owners of the rules associated with the use of the gate at Lighthouse Shores (LHS) Lot C, and Lot A. Through recent Tahoe Keys Property Owners Association (TKPOA) Security Patrols there have been numerous violations of this Superior Court Case SV-920066 Judgement of TKPOA Property Owners and their guests in violation of the following: • Bringing dogs or other pets into LHS Lot C and Lot A on or off leash. • Allowing Guests or Vacation Renters to use their TKPOA Member Photo ID card for access to • LHS Lot C and Lot A without the immediate presence of the TKPOA Member • Trespassing on the adjacent LHS Properties, by walking past posted “No Trespassing” Signs.

THE RULES

The rules are straightforward TKPOA Members should observe the following provisions pursuant to Superior Court Case SV-92-0066: • TKPOA Members with a valid TKPOA Member Photo ID card and guests in the immediate presence of their sponsoring member will be permitted access. Access is only permitted to Keys Breeze

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NO DOGS

No Dogs or other pets allowed in LHS. Based on TKPOA Security Patrols and pedestrian gate Member Card reader identification system, the TKPOA has issued warning notices to those members that have accessed the LHS pedestrian gate with dogs. The TKPOA Board of Directors will continue to utilize the Member Discipline process in accordance with Civil Code Section 5855 and TKPOA Bylaws Article VI, Membership Rights Section 5, Article IX, Duties and Powers of the Board Section 1(r), and TKPOA Declaration of Covenants, Conditions and Restrictions (CC&R’s) Article XII, Breach or Default, Section 6 (a-f), to enforce this Superior Court Case SV-92-0066 Judgement, related governing documents and rules.

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Please remember dogs must be on leashes throughout the TKPOA per El Dorado County Ordinance Title 6 – Animals, Chapter 6.04. General Provisions, Section 9.46.600. For the safety of your dog, TKPOA members and their guests please keep your dog on a leash.

NO TRESPASSING

When entering through the LHS pedestrian gate, you are on Lot C which is a narrow lot with Pope Marsh on the left and private residences on the right. TKPOA does not own the properties to the right of Lot C. This is private property and No Trespassing per California Penal Code 602PC. The City of South Lake Tahoe Police Department will be called for trespassing on these properties. The TKPOA has clearly marked the property lines on the right of the lot. The left side of the lot has a chain link fence all the way down to the beach on the Pope Marsh side. Lot C can be used to access Pope Marsh on the left, however access to the beach on the right is prohibited as this is private property and to do so is considered trespassing (CA 602PC). Access to the right is also a dead end at the West Channel Bulkhead. During Lake Tahoe high water events like we are currently experiencing there is typically no Public Trust beach access. To access Lot A at the end of the LHS roadway at the West Channel

Bulkhead, you should walk down the LHS paved roadway. The TKPOA is requesting that all property owners please respect these rules so that we can all enjoy this privilege of accessing Lot C and Lot A. Continued violations and flagrant abuse of these rules could result in legal claims against the TKPOA and potential gate closures. Pursuant to the Superior Court Case SV-92-0066 Judgement the TKPOA is responsible for the maintenance and security obligations in enforcing this judgement, and at this time the enforcement of these violations including trespassing violations on the adjacent LHS property will be pursued. The LHS pedestrian and vehicle gate are under continuous surveillance and all TKPOA Member Photo ID Card access is recorded so it is easy to track any violations. Once the violations are identified with the responsible Property Owners through the Member Discipline Hearing process, TKPOA Property Owners could face their individual and property Member Photo ID card access privileges suspended, Member Photo ID Cards confiscated, and potential fines. For additional questions please contact the TKPOA front desk at (530) 542-6444, Monday through Sunday 8:30 a.m.–4:30 p.m. Additional information is also available on the TKPOA website www.tkpoa.com, or contract TKPOA Security at (530) 545-0847.

LIGHTHOUSE SHORES 2018 ARCHITECTURAL CONTROL COMMITTEE MEETING SCHEDULE January 8

February 5

March 20

April 9 & 23

May 7 & 21

June 4 & 18

July 9 & 23

August 6 & 20

September 5 & 17

October 8

November 5

December 3

All meetings are held at the Pavilion and begin at 9:00 a.m. unless otherwise posted. ACC application submittals are due by noon Wednesday prior to the meeting date. For more information please contact Linda Callahan, ACD Manager, at (530) 542-6444, ext. 239 or lcallahan@tahoekeyspoa.org. Keys Breeze

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2018/19

BOARD OF DIRECTORS ELECTION AND TOWN HALL FORUM By Kirk Wooldridge, TKPOA General Manager

F

or the 2018–2019 Board of Directors Election, there are four board positions up for election. For this election we have twelve candidates running on the ballot and they are: Dennis Daniel, Craig Meyers, Robert Meyers, James Reed, Joe Sherry, Jim Siegfried, David Taylor, Ren Valencia, John Veth, Donna Walker, Ken Weitzman, and Rick Wood.

TOWN HALL FORUM

On July 19th, 2018 the Tahoe Keys Property Owners Association (TKPOA) held a Town Hall Forum at the TKPOA Pavilion from 6:00 p.m. - 8:00 p.m. We are pleased to report that we had over 60 interested Property Owners in attendance, with standing room only. The following candidates attended the Town Hall Forum and answered questions from the TKPOA Property Owners in a rotating panel format: Robert Meyers, David Taylor, Ren Valencia, Donna Walker, Ken Weitzman, and Rick Wood. The Property Owner audience questions that where asked of all Candidates present are as follows: 1. Explain why you are interested in serving as a TKPOA Board Member and what qualifications you have to serve as a Board Director? 2. Explain your goals for the Association as a Board Director? 3. Do you have any Water Treatment experience? 4. Do you own or operate a full time or part time, vacation rental in the Keys? If so, how many properties? 5. Where do you stand on the proposed ban on Vacation Home Rentals (VHR’s)? 6. What do you think of the following past Board Actions? 1) Lake Tallac Purchase, 2) Aquatic Invasive Species (AIS) Program Special Assessment, and 3) Pavilion Beach Shoreline Protective Structure Project? 7. Do you feel the current Board has moved our Association in the right direction? And Why? 8. There has been turnover of Managers and Board Members that has had a negative effect on the TKPOA progress. It has been Keys Breeze

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my experience that Board Members need a year to complete a cycle of work and to really become effective at their jobs. Would you support an amendment to the CC&R’s to extend the Board Term to 3 or 4 years. 9. Where do you live? 10. What are the top three “Issues” you want to take on in the first year of your term? In addition to these full Candidates panel questions there where individual questions for some of the Candidates as follows: two for Robert Meyers, one for David Taylor, one for Ren Valencia, and one for Rick Wood. The following TKPOA Board Candidates provided an RVSP notification in advance that they could not attend the July 19th, 2018 Town Hall Forum: Joe Sherry, Jim Siegfried, and John Veth. The following TKPOA Board Candidates did not provide an RVSP notification in advance that they could not attend the July 19th, 2018 Town Hall Forum: Dennis Daniel, Craig Meyer, and James Reed. A big “Thank You” goes out to the TKPOA Board Candidates that participated and those TKPOA Property Owners that attended the Town Hall Forum. An impromptu poll at the end of the meeting resulted in a unanimous by a show of hands from the TKPOA Property Owners that attended that thought this was an informative and useful Town Hall Forum.

2018 BOARD ELECTION

The Board of Directors two year terms that are ending this year are; Bonnie Halleran – President, Pat Disney – Vice President, Natalie Collin - Secretary, and Jim Siegfried – Treasurer and their terms end on September 1st, 2018. Board Members which still have one year left on their two year term are John Gonzales, Sean Ward, and Jim Woller and their terms end in 2019.

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The balloting period for this election will close at 9:05 a.m. on Saturday, September 1st, 2018. If you elect to return this Voting Ballot by mail, the ballot must be received no later than 3:00 p.m. on Friday, August 31st, 2018. If you elect to return this ballot in person at the Pavilion Office, the Voting Ballot must be inserted into the ballot box prior to 3:00 p.m. on Friday, August 31st, 2018. If you elect to return this ballot at the Board Meeting, it must be turned into the Inspector of Elections no later than 9:05 a.m. on Saturday, September 1st, 2018. Four Board of Directors seats are up for election. Please do not vote for more than four candidates. If you vote for more than four candidates, none of your votes in the director election will be counted. Once your Secret Ballot is cast, it cannot be revoked. A Secret Ballot is "cast" when it is received at the location designated by the Inspector of Elections. A Board of Directors meeting will be held Saturday, September 1st, 2018 at 9:00 a.m. at the TKPOA Pavilion located at 356 Ala Wai Blvd, South Lake Tahoe, CA. The Election Ballots will be opened and counted at this board meeting by the Inspector of Elections and designated volunteers. At 1:00 p.m. on Saturday, September 1st, 2018 the Director Election results will be announced and during this Board meeting the Directors will be seated. The 55th Annual Membership Meeting will be held as planned on Sunday, September 2nd, 2018 at 9:00 a.m. at the TKPOA Pavilion. If you have not received your Secret Ballot please contact Administrative Assistant Jo Ann Wilson at jwilson@tahoekeyspoa.org or (530) 542-6444, ext. 223 and we will have one mailed to you. For any additional questions on the 55th Annual Membership Meeting or Director Election, contact Kirk Wooldridge, General Manager, at (530) 542-6444, ext. 224 or email at kwooldridge@tahoekeyspoa.org.

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I

n accordance with the Bylaws and the adopted Election and Voting Rules of the Tahoe Keys Property Owners Association, the 55th, Annual Membership Meeting will be held on Sunday, September 2nd, 2018 at 9:00 a.m. in the TKPOA Pavilion located at 356 Ala Wai Boulevard, South Lake Tahoe, CA 96150.

The purpose of the meeting is to hear reports on the state of the Association and to introduce the newly-elected Association Directors for the 2018–2020 terms. The meeting will be convened promptly at the time noticed above. We hope all members will attend the meeting.

NOTICE OF ANNUAL MEETING

YOUR AD HERE!

In accordance with the Bylaws and the adopted Electio and Voting Rules of the Tahoe Keys Property Owners Association, the 55th, Annual Membership Meeting will b held on Sunday September 2nd, 2018 at 9:00AM in the TKPOA Pavilion located at 356 Ala Wai Boulevard, Sou Lake Tahoe, CA 96150.

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The purpose of the meeting is to hear reports on the sta of the Association and to introduce the newly-elected Association Directors for the 2018-2020 terms.

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The meeting will be convened promptly at the time notic above. We hope all members will attend the meeting.

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WHERE IN THE universe IS KEYS BREEZE? Attention all TKPOA Homeowners Submit your photo and win!

S

how us where you read the Keys Breeze. Winners will be chosen and given a $20 gift certificate to South Lake Brewing Company. All images must be submitted electronically. JPEG files are the preferred format and the size needs to be no less than 1 MB. By submitting your photo, you are giving us permission to reprint in Keys Breeze. Please email submissions to Heather Houston at HHouston@tahoekeyspoa.org. Stacey Harris relaxing on Anini Beach, Kauai.

Thank you!

IMPORTANT NOTICE TO TAHOE KEYS PROPERTY OWNERS + GUESTS

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THE VENICE DRIVE TENNIS COURTS WILL BE CLOSED

MONDAY, JULY 23RD, THROUGH FRIDAY, AUGUST 3RD, 2018

If you have any questions, or concerns you may contact: Jim Brooks (530) 542-6444, ext.241 Tom Callahan (530) 542 6444, ext. 226

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NOTICE OF CHANGE IN OPERATING RULES

TEXT OF PROPOSED CHANGES (Deletions are shown in strikethrough type and additions in boldface underlined type)

O

n July 21st, 2018 the TKPOA Board of Directors approved the following changes to the Tennis and Pickleball Court Rules for a 30 day membership review period. These rules will be considered for adoption at the September 15th, 2018 Board of Directors Meeting. If you would like to provide any feedback to the Board prior to approval, please email your comments to Jo Ann Wilson, Administrative Assistant at JWilson@ tahoekeyspoa.org, or submit them in person at the TKPOA Pavilion Office.

Purpose and Effect of Proposed Rule Change To further clarify the Tennis Court and Pickleball Court Rules as stated in the TKPOA Operating Rules Article 2: Association General Rules Section 400: Tennis Court and Pickleball Court Rules

No food and/or glass, alcohol containers allowed in the court area. No roller blades, skateboards and or bicycles permitted.

Only TKPOA Members with a valid Member I.D. Card may use the Tennis and Pickleball Courts. Guests must be accompanied by a Member with valid Member I.D. Card to use the Tennis and Pickleball Courts. Members with a valid Member I.D. may bring up to three (3) guests to use the Tennis and Pickleball Courts, Card holder must be present. Renters may purchase Day Use Passes at the Pavilion office to use Tennis and Pickleball Courts. Courts may be used for Tennis and Pickleball play only. Hiking Shoes, boots, and sandals and any other shoes which mark the courts are not allowed. A maximum of four players per court are allowed. Nonplayers must remain outside of court fences at all times. Keys Breeze

Court hours are from Sunrise a.m.-Sunset p.m.; The Venice Courts are open until 10 p.m.

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No person under 14 permitted without an adult. Pets are not allowed in Tennis and Pickleball Courts with the exception of service dogs. Service dogs should be kept away from playing area for their safety and the player’s safety. Do not abuse the net or other equipment. Court availability is on a first come, first served basis. Please limit playing time so others may use the courts. When the Courts are full everyone must rotate to allow those waiting an opportunity to play. Tahoe Keys Property Owner’s Association is not responsible for any accidents and/or injuries while using this facility. Pickleball is permitted at the Pickleball Pavilion Courts only. AUGUST 2018

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PICKLEBALL COURT IS NOW OPEN! 4 New Dedicated Pickleball Courts What is Pickleball?

By Jo Ann Wilson, Administrative Assistant

A

t the Saturday, June 16th, 2018 Board of Directors Meeting the Board approved the resurfacing of the Pavilion Beach Tennis Court to change to two Pickleball Courts, instead of the one Tennis Court. In reviewing the Zaino Tennis Courts Inc. proposal it was recommended rather than two Pickleball Courts we resurface and add the nets for four Pickle Ball Courts. Approximate additional cost is $6,000 to be funded from the Common Reserves Fund. On Friday, June 22nd, 2018 a Special Board of Directors Email Meeting approved Zaino Tennis Courts Inc. to resurface and install four Pickleball Courts at the Pavilion Beach Tennis Court. The corresponding agendas and minutes can be found on the TKPOA website at www.tkpoa.com. Also, all Board Actions are re-capped in each monthly edition of the Keys Breeze.

Pickleball is a fun paddle sport created for all ages and skill level that combines elements of badminton, tennis, and table tennis. Two or four players use solid paddles to hit a perforated ball, similar to a Wiffle Ball, over a net. The rules are simple and the game is easy for beginners to learn, but can develop into a competitive, fast-paced game for experienced players. For official game rules visit ifpickleball.org (International Federation of Pickleball).

TKPOA Hours for Tennis and Pickleball Open 7 Days a Week: 6 a.m.–10 p.m. Any comments or questions can be directed to Jim Brooks, Project Coordinator,Property Manager at (530) 542-6444, ext. 241 or JBrooks@tahoekeyspoa.org.

PICKLEBALL 101

PADDLE

A mix of pingpong, badmitton and tennis with more than 2.8 million players in the U.S. (2017)

RULES: • Only serving side may score after a fault. • Serve is underhand. • Ball must bounce one time per side.

PICKLEBALL (3" plastic)

WINNER: • First to 11 (must win by 2). NON-VOLLEY ZONE (KITCHEN): • Players may not enter (prevents slam shots). SOURCE USAPA.ORG, PICKLEBALLKITCHEN.COM

Keys Breeze

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DEALING WITH PROBLEM BOARDS

H

aving worked with boards for over 30 years, there are five types of bards. They almost always fall into one of the following categories:

1. Bad Boards 2. Dysfunctional Boards 3. Marginal Boards 4. Good Boards 5. Exceptional Boards BAD BOARDS: Fortunately, truly bad boards are few in number. They tend to be self-serving and driven by personal agendas. It has been my experience they don't follow legal advice and I eventually withdraw from representation (a polite way of saying I fire them). Once their path of destruction is visible to everyone, they usually get sued or thrown out of office, or both. A good board is then elected to clean up the mess. DYSFUNCTIONAL BOARDS: Dysfunctional boards consist of directors who are at each other's throats. Nothing gets done because they are too busy fighting each other. There are strong personalities on differing sides of every issue and they are unyielding in their opinions. Sometimes they hate each other and engage in personal attacks. Each side develops a following and splits the community. Feelings run deep and it takes years to recover from the strife. Fortunately, dysfunctional boards are also few in number. MARGINAL BOARDS: There are a fair number of marginal boards. Their directors serve because no one else will. They put in their time and try to avoid difficult decisions. They minimize rule enforcement and avoid spending money. They rationalize that doing nothing keeps dues down. Many owners get frustrated with such boards but not enough to volunteer their own time to Keys Breeze

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serve on the board. It's not until some crisis hits that more qualified volunteers step up. GOOD BOARDS: Most boards are good boards. They volunteer their time, address community issues, and generally make good decisions. They enforce the rules, repair the common areas, and fund the reserves. However, they can be slow to act and sometimes make mistakes. Even so, they care about the membership and their intentions are good. EXCEPTIONAL BOARDS: Exceptional boards are not the norm. Being on top of everything all the time, consistently communicating with members, responding quickly to complaints and never making mistakes is not sustainable. I've worked with many such boards over the years but the demands on their time and constant criticism from a minority of perpetually unhappy owners eventually wears them down. All five categories have their detractors. Unhappiness with bad, dysfunctional and marginal boards is fully justified. If members have such boards, they should do something about it. Complaints about good and exceptional boards are most often from owners who don't like rules. They go ballistic when the board enforces rules against them. Too often they engage in whisper campaigns against directors and threaten lawsuits. They run up the association's legal bills and bully people until they get what they want. They complain endlessly about their "bad" board while directors struggle to bring the scofflaws into line.

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55 Years!

Join us to celebrate the Annual Homeowners Picnic SUNDAY, SEPTEMBER 2ND, 2018 Noon to 4:00pm Tahoe Keys Pavilion Beach Over Four Guests $6 Adults and $2 Children

Food, Beer, Music, Raffle Prizes, and Fun!

Serving Hamburgers, Hot Dogs, Veggie Burgers, Pulled Pork, Pasta Salad, Sweet Beans, and Fruit Salad

Music Provided by IKE & MARTIN

356 Ala Wai Blvd., South Lake Tahoe, CA 96150 530-542-6444 TAHOEKEYSPOA.COM

For more information or to volunteer call 530-542-6444 Ext. 223 Keys Breeze

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guest of Lora Knight, the owner. Smith will present a signed copy of her book Vikingsholm, a guide she authored, to every guest. Guest’s meet at DL Bliss State Park at 5 p.m. to drive into Emerald Bay. Seating is limited and reservations are required.

EVERYTHING YOU NEED KNOW ABOUT TAHOE IN ONE PLACE. Day and nightlife events, shopping deals, farmers markets, live music, happy hours, and things to do, from all around Lake Tahoe. Get it all on your desktop or mobile device!

GO ONLINE TODAY

tahoe.com

EVENTS Trivia Nights • Monday, August 13th, 6:30 p.m. • South Lake Brewing Company. Farmers Market • Tuesday, August 14th through October 9, 8:00 a.m.—1:00 p.m. • El Dorado County Certified Farmers’ Market Association. Tuesday mornings at the American Legion Hall parking lot. Tuesday Night Blues - Tuesday, August 14th 8:00 pm, Harrah's Lake Tahoe, Harrah’s is heating up the night every Tuesday, with free Blues shows, live at Casino Center Stage. Longtime Northern Nevada musician Buddy Emmer will showcase local and regional headliner artists as they front Emmer’s smokin’ band with some of the best blues music around.Show time is 8 p.m. every Tuesday. Yoga at Kiva Beach • Wednesday, August 15th, 8:00 a.m. • Tahoe Outdoor Yoga. Excited to be back to teaching Outdoor Tahoe Yoga for Summer 2018! I will be offering community free/ donation based yoga classes at Kiva Beach on Wednesdays for all of August. Check out the site for more details: http://www.ericahartnick.com/ current-schedule/ Facebook: Tahoe Outdoor Yoga Instagram: TahoeOutdoorYoga

Erica Hartnick (503) 515-3088 cellerica@yogatrade. comericahartnick.com Friends' Book Club - Wednesday, August 15th, 3:00 p.m. • South Lake Tahoe Library. Please join us at 3 p.m. on the third Wednesday of each month as we read and discuss a variety of critically acclaimed books. We meet in the Library conference room. Refreshments will be served. For more information, please call Jeanne Benin at 541-1371. AUG. 15TH: Lost City of the Monkey Gods by Douglas Preston SEPT. 19TH: Astrophysics for People in a Hurry by Neil deGrasse Tyson OCT. 17TH: Norwegian by Night by Derek B. Miller NOV. 14TH: The Trespasser by Tana French (please note that this is on the second Wednesday) DEC. 19TH: Your favorite book or poem to share. Conversation With History: Living at Vikingsholm • Wednesday, August 15th, 5:00 –7:30 p.m. • Sierra State Parks Foundation. Join us for a special evening at Emerald Bay State Park and the incomparable Vikingsholm castle. Following a unique “behind the scenes” tour, guests will enjoy wine from Lucchesi Winery and hors d’oeuvres in the courtyard of Vikingsholm. Helen Smith will host an informal conversation about her experiences spending 14 summers at Vikingsholm as a Keys Breeze

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Beer Yoga at the Beach Retreat • Thursday, August 16th, 4:30 p.m. • Tahoe Beach Retreat & Lodge,. Join us for a refreshing beer yoga and some relaxing yoga poses to unwind from work, stretch after hiking, paddle boarding or parenting. We will be using our beer as a balance weight, a prop, and a pleasure! Just a fun way to enjoy a beer, some yoga, and some good company at the Beach Retreat. Allow Yoga Mama Gina’s light sense of humor and loving presence fill you back up after a draining week. Start your weekend off right with an intention of self care. Much unconditional love and rainbow butterflies. Live at Lakeview • Thursday, August 16th, 4:30–8:30 p.m., • South Lake Tahoe Events. Live at Lakeview is a free weekly concert series hosted at Lakeview Commons, in the heart of South Lake Tahoe. Every Thursday (June 21-August 30) the event hosts live music and art on the beach, along with a variety of local merchants and delicious food options plus amphitheater-style seating and breathtaking views of Lake Tahoe from the beer garden. Proceeds from the beer garden will continue to support South Tahoe BMX Association. August 16th — SkaGrass: World’s Finest with Lonesome Locomotive August 23rd — Folk: Caitlin Jemma & The Goodness with The Daily Fare August 30 — Reggae: Surprise Performance TBA with VTA plus Seth Hall, Miki Rae & Robbie Dub 28th Annual Gambler's Poker Run • Saturday, August 18th, 8:00 a.m.–9:00 p.m., South Lake Tahoe Events. Registration & Main Camp are located 25 miles south of South Lake Tahoe, CA., near Markleeville, at junction of Hwy. 4 & Wolf Creek Rd. on the east fork of the Carson River at

AUGUST 2018

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the Centerville Flat Campground. Enjoy beautiful Toiyabe National Forest, in the heart of the Sierras, with free dry camping. South Lake Tahoe Flea Market • Sunday, August 19th, 8:00 a.m.– 5:00 p.m. • South Lake Tahoe Events. The Tahoe Flea Market is held Saturday & Sunday May through September at Hwy. 50 and Elks Club Dr., one mile South of the airport. 100 spaces,new and used goods, arts and crafts, produce, and more 2018 Tamba Rose to Toads • Sunday, September 2nd, 6:00 a.m.–7:00 p.m., South Lake Tahoe Events. Over 62 miles in length with 8,000+ feet of climbing and 10,000+ feet of descent, this is the most amazing (and tough) mountain bike ride. What started off as a hair-brained idea with a few friends many years ago, preTAMBA rebirth, is now one of our signature events attracting crazy people from all around the country. It takes most people all day to complete the ride while showcasing some of the best trails linking Tahoe's North Shore from Mount Rose down to Lake Tahoe's South Shore ending on the famous Mr. Toads Wild Ride. It’s not a race but the ride can be as intense as you want it to be, join us and be part of something awesome! Kids' Nature Journal Club • Saturday, September 8th, 10:00 a.m., South Lake Tahoe Library,. Do you love Lake Tahoe and the outdoors? Come learn skills for exploring the natural world around you and how to capture your adventures in a nature journal. We’ll learn to see more when we’re out in the wilderness, try to identify what we encounter, and practice drawing and writing about all of it! Some materials will be provided but bring a notebook and pen if you have them and make sure to dress for the weather—we’ll be going out exploring! Sponsored by Friends of the Library.


New Green Tariff Offers 100% Renewable Energy! By John Friedrich, Liberty Utilities

I

n July, the California Public Utilities Commission (CPUC) approved Liberty Utilities’ application for a Green Tariff, which will allow interested customers to meet their electricity usage for their home or business with 100% renewable energy. It will be available to our customers once the CPUC approves the actual tariff, expected in early fall. When customers sign up for the Green Tariff, they will be assigned output from Liberty’s Luning solar facility. Liberty Utilities in turn develops new renewable energy projects to replace the output that is taken by Green Tariff customers. The initial rate to participate is 1.66 cents/kWh, which could be adjusted as the price of new renewable energy sources continues to come down. “The Green Tariff is an exciting new program that helps our customers be powered by 100% clean, renewable energy today,” explains John Friedrich, Liberty Utilities’ Territory Manager of Business and Community Development.“ Every customer who signs up for the Green Tariff is voting for a 100% clean energy future, and gives us cause to build new solar and other renewable energy projects.” Customers will be added to the Green Tariff John Friedrich is Liberty Utilities’ on a first-come, first-served basis, up to the Territory Manager of Business and limit of Luning’s production which is forecast Community Development and has at approximately 145 million kWh per year. lived in the Lake Tahoe area for To sign up for this new rate when it becomes years with his family. He is a strong available, call our local customer service advocate for renewable energy. representative at 1-800-782-2506.

Follow us at Twitter@LibertyUtil_CA

It’s easy to be green and save money too! We offer a variety of programs for residential and commercial customers to save energy and money — and help our environment.

Local and Responsive. We Care. Twitter@LibertyUtil_CA

And, many of these programs are at no cost to you! Visit www.libertyutilities.com and click on the “Smart Energy Use” link at the top or call 1-800-782-2506. Keys Breeze

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Accounting

Report By Don Havard, Accounting Manager

T

he Assessment Payment Schedule is located towards the back of every Keys Breeze. Assessments are due on a quarterly basis as indicated in the Assessment Payment Schedule. No other payment plans have been approved by the board, so please pay your assessment in full according to the schedule.

QUARTERLY ASSESSMENT

DUE ON:

DELINQUENT AFTER:

1st Quarter 2nd Quarter 3rd Quarter 4th Quarter

January 1st April 1st July 1st October 1st

January 30th April 30th July 30th October 30th

Quarterly statements are mailed out as a courtesy, however, assessment payments are due even if the statement is not delivered by your mail courier. Mail payments to:

Tahoe Keys POA P.O. Box 1026 Roseville, CA 95678-8437

Meetings and Approvals

The Board of Directors approved the May and June 2018 Financial Statements at the meeting held on July 21st, 2018. The Finance Committee monthly meeting was held on July 24th, 2018. The committee reviewed the following reports prepared by TKPOA staff: • June 2018 Financial Statements • 2018 2nd Quarter Variance Report, comparing actual 2nd quarter results to the budget. • 2019 Budget Development Calendar with changes as indicated below. • Proposal for accepting dues payments online through the TKPOA website.

$2,500 as a group and record as a Reserve item • Reclassify Water Quality legal expenses related to LRWQCB approvals to the AIS Reserve fund • Recommending to the Board of Directors that the TKPOA absorb, for the first year, then re-evaluate, the $1 per member cost for the online payment system that is to be implemented. 2019 Budget Development Calendar Date Changes: • Board Subcommittee meeting to review 1st Draft: August 14th, 2018 change to August 16th, 2018 • Finance Committee meeting to review 2nd Draft: August 28th, 2018 changed to August 29th, 2018 The next Finance Committee Meeting is scheduled for August 21st, 2018 at 10 a.m. at the TKPOA Pavilion.

The committee approved the following: • Reclassification of computer expenses that exceed Keys Breeze

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TAHOE KEYS PROPERTY OWNERS ASSOCIATION OPERATING AND RESERVE FUNDS NET INCOME RESULTS AS OF JUNE 31, 2018 (ACCRUAL BASIS)

Operating Funds (Year to Date) FUND

INCOME

EXPENSE

Annual Expense Budget % Remaining Budget NET INCOME

BUDGETED EXPENSE

Reserve Funds (Year to Date)

PERCENTAGE %

NET INCOME

TKPOA COMMON Common

$1,081,424

$1,047,547

33,877

$2,083,308

49.7%

-5,282

Water Quality

235,734

179,233

56,501

402,676

55.5%

(130,921)

Water Company

216,853

269,484

(52,631)

507,179

46.9%

36,533

TKPOA TOTALS

$1,534,011

$1,496,264

$37,747

$2,993,163

50.0%

-99,670

SUBDIVISIONS Cove 1

$24,121

$21,988

$2,133

$46,044

52.2%

(96,408)

Cove 2

23,219

19,644

3,576

40,861

51.9%

22,166

Cove 2A

32,305

31,389

916

62,122

49.5%

(37,084)

Cove 3A

22,362

23,411

(1,049)

45,201

48.2%

(74,253)

Cove 3B

21,136

21,030

106

42,748

50.8%

15,498

Cove 3C

40,050

36,801

3,249

77,632

52.6%

9,295

Cove 4

21,009

13,729

7,280

42,507

67.7%

(3,441)

Cove 5

94,972

77,551

17,421

173,336

55.3%

52,676

Islanders I

11,349

11,150

199

22,025

49.4%

13,699

Islanders II

19,159

19,407

(248)

38,420

49.5%

24,270

Islanders III

39,643

36,048

3,595

75,627

52.3%

14,475

Tahoe Marina Shores

57,695

56,157

1,539

116,146

51.6%

11,782

Lighthouse Shores

18,798

9,516

9,282

37,623

74.7%

18,979

PineStone East

3,507

560

2,947

3,434

83.7%

25,436

PineStone West

382

373

9

746

50.0%

319

1,382

1,372

10

2,713

49.4%

4,929

$431,089 $1,965,100

$380,124 $1,876,388

$50,965 $88,712

$827,185 $3,820,348

54.0% 50.9%

2,339 -$97,331

12

50.0%

PineStone 3

SUBDIVISION TOTALS ASSOCIATION TOTALS Operating Months Remaining

6 Keys Breeze

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TAHOE KEYS PROPERTY OWNERS ASSOCIATION OPERATING AND RESERVE FUND BALANCE RESULTS AS OF JUNE 31, 2018 (ACCRUAL BASIS)

FUND

OPERATING

RESERVE

TKPOA Common

$186,484

$206,492

Water Quality

$-

$117,560

Water Company

215,367

221,604

TKPOA TOTALS

$420,996

$840,783

SUBDIVISIONS Cove 1

$62,282

$283,096

Cove 2

55,918

145,201

Cove 2A

48,029

140,470

Cove 3A

32,694

436,592

Cove 3B

32,415

332,924

Cove 3C

52,954

337,523

Cove 4

36,059

235,041

Cove 5

$(7,041)

659,108

Islanders I

43,700

203,105

Islanders II

35,463

181,866

Islanders III

25,842

610,735

Tahoe Marina Shores

67,383

82,693

Lighthouse Shores

87,218

258,015

PineStone East

9,055

29,295

PineStone West

4,161

9,825

PineStone 3

28,451

28,510

SUBDIVISION TOTALS ASSOCIATION TOTALS

$614,583 $1,035,579

$3,974,000 $4,814,783

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SEEKING VOLUNTEERS FOR HOMEOWNERS PICNIC Save the Date—Sunday September 2nd, 2018 By Heather Houston, Operations Manager

T

he 2018 Annual Homeowners Picnic will take place on Sunday, September 2nd, 2018 from noon to 4 p.m. We anticipate 1,100 members to attend. The picnic will be held at the TKPOA Pavilion in the outdoor area next to the outdoor pool and the large park area next to the office. There will be food, beer, wine, soft drinks, games and music by Ike and Martin for the entire family to enjoy. As done in previous years, members will receive four meal tickets for the buffet at no charge and guest tickets for parties over four will be available for purchase, $6 for adults and $2 for children. Additional tickets may be purchased with cash or credit card at the front desk inside the Pavilion Office. Volunteers are needed to help in the production of the Annual Homeowners Picnic. The activities include planning and organizing the event with TKPOA staff and caterers, providing service at planned dessert, wine, and beer stations, and assistance monitoring entrance to the event. If you are interested please contact Administrative Assistant Jo Ann Wilson at (530) 542-6444, ext. 223 or JWilson@tahoekeyspoa.org.

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Michael@TahoeKeysRealty.com CA Broker# 01374418

www.TahoeKeysRealty.com for more info Keys Breeze

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TAHOE KEYS PROPERTY OWNERS ASSOCIATION RULES AND REGULATIONS FOR WATER SERVICE

On July 21st, 2018 the TKPOA Board of Directors approved the following new rules for Tahoe Keys Water Company Rules and Regulations for a 30 day membership review period. These rules will be considered for adoption at the September 15th, 2018 Board of Directors Meeting. If you would like to provide any feedback to the Board prior to approval, please email your comments to Jo Ann Wilson, Administrative Assistant at JWilson@tahoekeyspoa. org, or submit them in person at the TKPOA Pavilion Office. Purpose and Effect of Proposed Rule Change To further clarify the Rules and Regulations for Water Service.The following text is newly proposed rules for the Tahoe Keys Property Owners Association.

main lines and laterals connect with the Townhouse foundations, as well as such lines within the Common Areas and servicing the Common Facilities; in all other cases, all water supply and conveyance infrastructure that is (i) upstream and inclusive of the Company’s valve on an unmetered connection or (ii) upstream and inclusive of the meter on a metered service connection, with such infrastructure including but not limited to service laterals, waterlines, valves, meters, wells, treatment systems, and other facilities used to provide water service. 1.16 “Water Service” shall have the meaning pursuant to Section 3.1 of these Rules and Regulations. 1.17 “Water User’s System” shall mean all facilities and infrastructure downstream of the termination of the Company Water System.

SECTION 2

SECTION 1 1.1 1.2 1.3 1.4

1.5 1.6 1.7 1.8 1.9 1.10 1.11 1.12 1.13 1.14 1.15

DEFINITIONS “ACC” shall mean the Tahoe Keys Property Owners Association Architectural Control Committee. “Board” shall mean the Board of Directors of the Tahoe Keys Property Owners Association. “Bylaws” shall mean the Restated Bylaws of the Tahoe Keys Property Owners Association, as such Bylaws may from time to time be supplemented, amended, or modified. “CC&Rs” shall mean the First Restated Declaration of Covenants, Conditions and Restrictions, recorded June 11, 1991 in the Office of Recorder of the County of El Dorado at Book 3570, Page 131, as such CC&Rs may from time to time be supplemented, amended, or modified. “City” shall mean the City of South Lake Tahoe. “Company” shall mean the Water Department of the Tahoe Keys Property Owners Association, also known as the “Tahoe Keys Water Company.” “Company Manager” shall mean the Manager of the Water Department of the Tahoe Keys Property Owners Association. “General Manager” shall mean the General Manager of the Tahoe Keys Property Owners Association, as appointed by the Board of Directors. “Individual Assessment” shall mean a “Special Individual Assessment” as described in Article V of the CC&Rs. “Member” shall mean a member of the Tahoe Keys Property Owners Association, as defined in Article III, Section 1 of the Bylaws. “Non-Member” shall mean an individual or entity which is not a member of the Tahoe Keys Property Owners Association, as defined in Article III, Section 1 of the Bylaws. “Owner” shall mean the record owner of a property receiving water service. “Rules and Regulations” shall mean these Rules and Regulations for Water Service as adopted by the Board, and as may be amended from time to time. “TKPOA” shall mean the Tahoe Keys Property Owners Association. “Company Water System” shall mean the following: in the case of a Townhouse Subdivision, all water supply and conveyance infrastructure upstream of the point where the Keys Breeze

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GOVERNANCE 2.1 Board of Directors. The Board shall be responsible for setting rates, adopting Rules and Regulations, hearing appeals and providing direction to the General Manager. 2.2 Company Manager. The Company Manager shall oversee all activities of the Company to furnish Water Service, under the supervision of the General Manager. 2.3 Control and Management. The Company Water System shall be under the exclusive control and management of the Company, and no connection or Water Service shall be made or obtained except in accordance with the provisions of the CC&Rs, Bylaws, and these Rules and Regulations. 2.4 Applicability of Rules and Regulations. Except where otherwise provided, these Rules and Regulations shall apply to all Owners, including both Members and non-Members receiving Water Service from the Company. 2.5 Except as otherwise provided herein, terms with initial capital letters have the same meaning as set forth in the CC&Rs.

SECTION 3 GENERAL CONDITIONS OF WATER SERVICE 3.1 Water Service. The Company will exercise reasonable care and diligence to deliver to the Owners a continuous and sufficient supply of potable water at a proper pressure and to avoid shortages or interruptions in service. The Company, however, shall not be liable for interruptions, shortages, or insufficient supplies, fluctuations or variations in pressure, or any related losses or damage. The Owners are solely responsible for any infrastructure that is downstream of the Company’s valve on an unmetered service connection or downstream of the meter on a metered service connection. 3.2 Company Not Responsible for Damage or Loss to Owner. The Company will not be responsible for any loss or damage resulting from the installation, maintenance, operation or use of any appliances or other equipment by an Owner; nor for any damage to persons or property resulting from the maintenance, repair or operation of the Company Water System, where the Company has not been negligent or engaged in willful misconduct in connection with such maintenance or repair or operation; nor for any damage to

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3.3

3.4

3.5

3.6

3.7

persons or property caused by leakage due to conditions on the Owner’s property, by failure or defects of pipes, or by high or low pressure or flow. Unauthorized Water Use. Any Owner found taking water from or through the Company Water System without the Company’s approval and authorization (including if said Owner takes such water as a result of cutting or otherwise tampering with any lock or other mechanism placed by the Company on a meter or valve to prevent use of water) will be assessed a fine up to five hundred dollars ($500.00), as determined by the Company Manager, in addition to any charges for the quantity of water taken and for the damage done to the Company Water System. In addition, the Company reserves the right to seek criminal prosecution under California Penal Code sections 624 and 625 for such unauthorized water use. Written notice of the assessment of such fine shall be given by personal service or by registered or certified mail. Interruptions and Shortages in Service. The Company expressly reserves the right to interrupt Water Service when necessary to repair, maintain or install water lines, meters and other facilities, and restrict, allocate or apportion water supplies as necessary under then-existing conditions. Separate Service Connections. Each residential unit shall maintain a separate Water Service connection. Where, contrary to the requirements of this Section, two or more townhomes or units owned by different persons are found to be supplied through the same Water Service connection and/ or metering device, the person or entity who owns the lot or parcel initially entered by the Water Service connection shall disconnect or abandon the Water Service to the lots or parcels owned by other persons. The Owner who owns the residential unit for which there is no separate Water Service connection may apply to the Company for a separate Water Service connection and pay all associated fees, costs and expenses. Service Calls. Where access to the Owner’s premises for maintenance or other service is required and the Owner must be present for such service call, the Company will offer to schedule the service call during a four-hour period. Where unforeseen or unavoidable circumstances prevent the Company from making the scheduled service call, the Company will make a diligent effort to notify the Owner of the delay and then make the service call within a newly agreed two-hour period. If the Owner fails to honor the service call appointment, the Company may assess a fifty dollars ($50.00) fee on the Owner’s next water bill, in the case of a non-Member Owner, or as an Individual Special Assessment, in the case of a Member. Owner Requests for Temporary Shut-Off. An Owner may request a temporary shut-off of Water Service by giving at least 24 hours’ notice on the business day preceding the requested shut-off. Charges will be assessed in accordance with the applicable fee schedules for service calls.

SECTION 4 COMPANY WATER SYSTEM 4.1 Ownership of Facilities on Owner’s Premises. All components of the Company Water System are the property of Keys Breeze

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4.2

4.3

4.4

4.5

4.6

the Company. No rent or other charge will be paid by the Company where the Company Water System facilities are located on an Owner’s property. Location of Waterlines and Water Meters. The Company may locate or relocate valves, water meters and waterlines from the main to the property being served at such locations, whether in a public right-of-way or on the Owner’s private property, as determined by the Company at its absolute and sole discretion. Right of Entry by Company. The Company shall have the right of ingress and egress across any property that receives Water Service from the Company at reasonable times for any purpose reasonably related to the installation, maintenance, repair, and replacement of waterlines and water meters and reading of water meters. Damage to the Company Water System. An Owner shall not damage the Company Water System. Any damage caused by the Owner shall be repaired by the Company at the Owner’s cost and expense. Company Access to Service Connections. 4.5.1 The Company shall have access to an Owner’s property during reasonable hours for the installation, maintenance, operation or removal of the Company’s service lateral, meter, meter box or other equipment located on the property, and for the reading of any meter situated on that property. A Water User’s System may be inspected at all reasonable times by authorized Company representatives. 4.5.2 The Owner shall maintain his or her premises such that the Company’s valve and meter are free from landscaping and fully accessible at all times to Company personnel. The Owner is prohibited from tampering with, modifying, or in any way manipulating the Company’s valves or meters. Failure to comply with this Section 4.5.2 is punishable by the enforcement procedures in Section 12. Owner’s Responsibility for Company Property. The Owner will be charged for damage to any part of the Company Water System on Owner’s premises, or otherwise due to the Owner’s negligence or willful conduct, including, but not limited to, cutting or otherwise tampering with any lock or other mechanism placed on a valve or meter by the Company to prevent use of water through that meter. An Owner should promptly notify the Company in the event of a leak or other problem with the Company Water System. All damage which, after investigation by the Company, is determined to be the responsibility of an Owner, will also be billed to that Owner. For purposes of this Section 4, an Owner is responsible for the acts of the Owner’s tenants, contractors, employees or agents

SECTION 5 NON-MEMBER OWNERS 5.1 Water Service to Non-Members. The Company shall provide Water Service only to Members, except when otherwise required by law, including but not limited to Water Service to existing non-Members. 5.2 Compliance with Rules and Regulations as a Condition of Water Service. As a condition of receiving Water Service,

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non-Member Owners must comply with these Rules and Regulations. 5.3 Metering Device. Each Owner who or which is not a Member shall provide access for the Company to install a metering device capable of measuring the volume of water delivered on at least a monthly basis. 5.4 Company Water Meter Responsibility. The Company shall own the water meter and be responsible for the installation, repair and maintenance and replacement of all water meters, including risers, boxes and appurtenances. Such responsibility, as described in this Section, ends at the discharge side of the water meter. 5.5 Access to Meter. The non-Member Owner shall maintain access to the meter at all times. On occasions where access is not possible, the Company shall estimate consumption. Estimated use shall be verified during a subsequent meter reading period and any shortfall of use or over-estimate of use shall be adjusted in the next bill.

SECTION 6 CROSS CONNECTIONS 6.1 Backflow Prevention Policy. No Water Service connection shall be installed or maintained by the Company unless the water supply is protected, as required by California laws and regulations and this Section. Service of water shall be discontinued by the Company if a backflow preventer required by this Section is not installed, satisfactorily tested, and maintained, or if it is found that a backflow prevention assembly has been removed, or bypassed, or if an uncontrolled cross-connection exists. Service will not be restored until such conditions or defects are corrected in accordance with the requirements of this Section. 6.2 Effective Date. By January 31, 2019, any backflow prevention device required by this Section must be installed. 6.3 When Required. An approved backflow prevention assembly shall be installed by an Owner on each Water Service connection to a Water User’s System wherever the following conditions exist: 6.3.1 In the case of an Owner having an auxiliary water supply which does, or may contain, pollution or contamination, and which is not approved by the Company Manager or other authorized representative. If the Owner elects to abandon the auxiliary water supply, the backflow control shall not be required under this Section. 6.3.2 In the case of property on which any industrial wastes, industrial fluids system or any other pollution or contamination is handled in such a fashion as to create an actual or potential hazard to the Company Water System, including the handling of process waters and waters originating from the Company Water System which have been subject to deterioration in quality. 6.3.3 In the case of property having (1) cross-connections that cannot be corrected and controlled; (2) intricate plumbing and piping arrangements; or (3) where entry to all portions of the property is not readily accessible for inspection purposes, thereby making it impracticable or impossible to ascertain whether or not cross-connections exist. Keys Breeze

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6.3.4 In the case of a property having a hydronic heating system, such hydronic heating system will not be considered a condition requiring the installation of a backflow prevention assembly if the system is a “closed loop system” that is not connection to the potable water system for the provision of make-up water. To be considered a closed loop system, exempt from these backflow prevention assembly requirements, the hydronic heating system must have a stand-alone reservoir for make-up water and a double-walled heat exchanger. To be exempt from the backflow prevention assembly requirements, a hydronic heating system must be approved by the Company Manager. 6.4 Location of Device. Any backflow prevention device required under this Section must be installed at or near the property line or immediately inside the building being served, and in all cases, upstream of the first branch line leading off the Water Service line. 6.5 Type of Device Required. The type of backflow prevention device required shall depend upon the degree of hazard which exists, as follows: 6.5.1 In the case of an Owner having an auxiliary water supply which does, or may contain, pollution or contamination, the Company Water System shall be protected by an air-gap or a reduced pressure principle backflow prevention assembly. 6.5.2 In the case of any property where there is a pollutional hazard, but not a health hazard, if introduced into the Company Water System, the Company Water System shall be protected by an approved double check valve or a reduced pressure principle backflow prevention assembly. 6.5.3 In the case of any property where there is any material dangerous to health which is handled in a fashion that creates an actual or potential hazard to the Company Water System, the Company Water System shall be protected by an air-gap or a reduced pressure principle backflow prevention assembly. 6.5.4 In the case of any property where there are uncontrolled cross-connections, the Company Water System shall be protected by an air-gap or a reduced pressure principle backflow prevention assembly at the Water Service connection. 6.5.5 In the case of interties with other water purveyors without equivalently controlled cross-connections, such intertie will be removed. 6.6 Testing. It shall be the duty of the Owner at any property where backflow prevention assemblies are installed to have certified inspections and operational tests performed on such backflow assemblies at least once per year. In circumstances in which the Company deems the degree of hazard to be great enough, it may require certified inspections and operational tests at more frequent intervals. The Owner shall notify the Company in advance when the tests are to be undertaken so that the Company’s inspector may observe the inspection and tests if so desired. A copy of the results of the testing required by this Section 6.6 shall be provided to the Company. These backflow prevention assemblies shall be repaired, overhauled or replaced, and retested at the expense of the Owner whenever they are determined

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by the Company to be defective, improperly installed or improperly located. All repair and replacement parts shall be equal in quality to those supplied by the manufacturer of the backflow prevention assembly being repaired or replaced. No backflow prevention assembly may be altered in any way from its manufacturer’s design, material, or operational characteristics. 6.7 Existing Backflow Prevention Assemblies. All existing backflow prevention assemblies which do not meet the requirements of this Section, but were approved when installed and which have been properly maintained shall, except for the inspection and testing requirements under Section 6.6, be excluded from the requirements of Section so long as the Company Manager has determined that they will satisfactorily protect the Company Water System. Whenever an existing backflow prevention assembly is moved from its location, requires more than minimum maintenance, or when the Company finds that its maintenance constitutes a health hazard, the existing backflow prevention assembly shall be replaced by a backflow prevention assembly meeting the requirements of these Rules and Regulations.

SECTION 7 ÇRATES, ASSESSMENTS AND CHARGES 7.1 Determined by the Board. Water Service rates, assessments, and charges shall be determined by the Board in accordance with the CC&Rs, Bylaws, and Board-adopted resolutions. Such water assessments and water rates are intended to recover revenues sufficient to adequately fund Company operations, maintenance, capital replacement expenditures, and reserves, while keeping assessments and rates as low as possible and maintaining a prudent level of reserves. 7.2 Responsibility for Payment. 7.2.1 Payment for all Water Service charges, fees, and assessments shall be the responsibility of the Owner. 7.2.2 Notices and billing shall be sent to the Owner. Notices and bills may, upon written request, be mailed to a tenant or persons other than the Owner. Such an arrangement will not alter the Owner’s responsibility for payment as set forth in these Rules and Regulations. 7.3 Place and Method of Payment. The place and method of payment of all Water Service charges, fees and assessments shall be in the manner prescribed by the Company. 7.4 Member Assessments. 7.4.1 Members shall pay for Water Service on a quarterly basis through flat rate assessments calculated in accordance with the CC&Rs, Bylaws, and these Rules and Regulations, and as set forth in the Annual Disclosures. Members shall be assessed in advance for the billing period. Assessments for Water Service will reflect operating expenses and reserve contributions for the Company. The Company Water System is supplied by blended sources of water and in setting assessments for Water Service, TKPOA has no obligation to establish different assessments based on the source of water supply for particular areas, villages, sub-associations or buildings. 7.4.2 Delinquencies shall be collected in accordance with TKPOA’s Collection and Full Pay Policy for Assessments, Keys Breeze

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and other resolutions and policies as may be adopted by the Board. 7.5 Charges to Non-Members. 7.5.1 Rates and Service Charges. Non-Member Owners shall pay a per gallon commodity rate, a capacity charge for operating expenses, and a capacity charge for reserve contributions. The per gallon commodity rate shall be paid by non-Member Owners for the measured volume of water at each metered service connection. The commodity rates and capacity charges shall be as approved by the Board. 7.5.2 Billing. Non-Member Owners shall be billed for Water Service on either a quarterly or monthly basis, with the payment due date set forth in each bill. 7.5.3 Late Charges. A late charge of ten dollars ($10.00) or ten percent (10%), whichever is greater, will be charged for any bill that is not paid within fifteen (15) calendar days of the due date. 7.6 Water Connection Fees. Water connection fees shall be billed upon the applicant’s connection to the Company Water System, or at such earlier time as determined by the Company.

SECTION 8 SCHEDULES OF CHARGES, RATES AND FEES 8.1 Schedule 1 – Non-Member Water Rates. 8.1.1 Operating – Commodity Rate $.001423/gallon 8.1.2 Operating – Capacity Charge (per meter per month) 0.75-inch $7.00 1-inch $11.70 1.5-inch $23.30 2-inch $37.30 3-inch $81.60 4-inch $147.00 6-inch $327.00 8-inch $560.00 8.1.3 Reserve – Service Charge (per meter per month) 0.75-inch $15.60 1-inch $25.90 1.5-inch $51.70 2-inch $82.70 3-inch $181.00 4-inch $326.00 6-inch $724.00 8-inch $1,241.00 8.2 Schedule 2 – Water Connection Fees. 8.2.1 New Domestic Water Service. Connection Fee one-inch: $3,500.00* Meter Set Charge: $388.00 Administration Fee: $150.00 Water Capacity Charge: $48.00 * Sizes larger than one-inch subject to additional charges to be determined by the Company Manager 8.2.2 Private Residence Fire Line Water Service. Connection Fee one-inch: $3,500.00* Administration Fee: $150.00 Water Capacity Charge: $48.00

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* Sizes larger than one-inch subject to additional charges to be determined by the Company Manager.

8.3 Schedule 3 – Water Service Call Charges for Service Calls During Regular Working Hours. There shall be no charge to an Owner for a service call made during regular working hours, as those hours are listed on the Company’s website. 8.4 Schedule 4 – Water Service Call Charges for Service Calls Outside Regular Working Hours. For a service call outside the Company’s business hours, the Owner shall be charged a flat fee of $150, plus an additional $75 per hour for the Company’s time in excess of two hours. 8.5 Schedule 5 – Temporary Fire Hydrant Permit Fee and Rates (For Construction Use). Temporary Fire Hydrant Permit Fee: $ 150.00 Temporary Fire Hydrant Metered Rate: $ 0.001423/gallon 8.6 Schedule 6 – Meter Calibration Charges. If a customer requests calibration of a meter, the customer shall pay a meter calibration charge of $ ___ if the meter is accurate to within +/- 95%. If the meter is not accurate to within +/95%, then no meter calibration charge will be owed.

SECTION 9 DELINQUENCIES, Penalties, and disconnection 9.1 Applicability. For the purpose of this Section, any cost, fee, charge, or penalty shall be referred to as a “Water Service charge” or “Water Service charges.” 9.2 Remedies are Cumulative. No remedy for collecting and enforcing Water Service charges in this Section 9 shall be deemed exclusive but shall, wherever possible, be cumulative with all other remedies in these Rules and Regulations and with all other remedies at law or in equity and may be used alternatively, or in any combination. 9.3 Enforcement. The Company declares that the procedures of this Section 9 are established as a means of enforcing the terms and conditions of these Rules and Regulations, and not as a penalty. 9.4 Liability for Violations. Any person violating any of the provisions of these Rules and Regulations shall be liable to the Company for any expense, loss or damage incurred by the Company by reason of such violation and for abating, enforcing, administering and monitoring compliance with these Rules and Regulations. Such expense, loss or damage shall be deemed a Water Service charge pursuant to this Section 9. 9.5 Billing of Penalties and Other Costs. The penalties, disconnection and reconnection fees and other fees and costs as provided for in this Section may be billed at the time such penalties, disconnection and reconnection costs and other fees and costs are incurred or accrue, or upon the next billing period, as determined by the Company. 9.6 Designation and Application of Payments. If partial payment is made upon a bill which includes delinquent charges or penalties, the partial payment shall be applied in the following order: penalties as applicable, delinquent charges as applicable, and current charges. The Owner may make a written dispute concerning any or all of a bill for Water Service charges, and the Company shall keep a record of all such Keys Breeze

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disputes. 9.7 Delinquency. Bills shall identify the due date when payment must be received by the Company. If any bill is not paid on or before the due date, the charges on the bill shall be delinquent. If a payment is made on a particular component of the bill for Water Service charges prior to the due date, in accordance with Section 9.6, above, the charges for that particular component of the bill paid shall not be delinquent. 9.8 Returned Check Charge. Charges for any Water Service provided for in these Rules and Regulations shall be subject to an additional charge in the amount of fifty dollars ($50.00) for each payment by check which is dishonored for any reason. 9.9 Payment Agreements. 9.9.1 Authority. Only the General Manager or the Company Manager may enter into an agreement modifying payment obligations on any unpaid balance of delinquent Water Service charges. The agreement shall be on the terms as determined in the Company’s sole discretion, but shall not exceed a period of twelve (12) months. 9.9.2 Stay. The Company shall not engage in any collection activities, including disconnection of Water Service and enforcement of liens, during the term of any such payment agreement, provided the payment agreement is not breached and the Water Service charges in each subsequent billing period are timely paid. 9.9.3 Breach. If there is a breach of any term of the payment agreement, as reasonably determined by the Company, the Company may immediately initiate or resume any and all collection and enforcement activities and disconnection procedures. 9.10 Disconnection of Water Service. The Company may disconnect Water Service for a violation of these Rules and Regulations or for failure to pay delinquent Water Service charges, by following the procedures set forth below. 9.10.1 First Written Notice. At least thirty (30) days prior to disconnection of Water Service, the Company shall mail a written notice with return receipt requested to the Owner describing the delinquency or violation, how it can be resolved, and the date and time that Water Service will be disconnected if the delinquency is not resolved. 9.10.2 Second Written Notice. At least five (5) days prior to disconnection of Water Service, the Company shall mail a written notice with return receipt requested to the Owner describing the delinquency or violation, how it can be resolved, and the date and time that Water Service will be disconnected if the delinquency is not resolved. 9.10.3 48-Hour Telephone Warning. At least forty-eight (48) hours prior to disconnection of Water Service, the Company shall make a reasonable effort to contact the Owner by telephone or in person to notify the Owner that Water Service will be disconnected by a specified date and time if the delinquency described in the prior written notices is not resolved. 9.10.4 Disconnection of Water Service. Termination of Water Service due to delinquent charges must occur on a weekday and when the Company’s office is open. 9.11 Complaint or Dispute Review. Upon receipt of a complaint

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9.12

9.13

9.14

9.15

following the posting of the notice required by Section 9.10, the Company shall conduct a review or investigation, or both, of such complaint. The review shall include consideration of whether a correction agreement to correct any violation or a payment agreement to amortize any unpaid charges should be permitted in lieu of the authorized disconnection. Prohibition of Disconnection of Service. The Company shall not disconnect Water Service under the following circumstances: 9.12.1 During the pendency??? of an investigation by the Company of an Owner dispute or complaint; 9.12.2 For a residential Water Service connection, if 1) the Owner presents a certification of a licensed physician that disconnection of Water Service will be life threatening to the Owner or the Owner’s tenant, 2) the Owner is financially unable to pay for Water Service within the normal payment period, and 3) the Owner is willing to enter into a payment agreement with the Company with respect to all charges that the Owner is unable to pay. Disconnection and Reconnection Charges. Property as to which Water Service charges become delinquent and are disconnected shall not be reconnected until all the following charges have been paid to the Company. 9.13.1 Estimated Cost. The Company shall estimate the cost of disconnection and reconnection, including all direct and indirect costs. 9.13.2 Deposit of Estimated Cost. The estimated cost must be deposited with the Company in the form of cash, money order, or cashier’s check before the property is reconnected. 9.13.3 Actual Cost. The Company shall determine the actual cost of disconnection and reconnection. The actual cost of disconnection and reconnection in excess of the estimated cost deposit shall constitute a Water Service charge and be added to the next billing. The amount of the estimated cost deposit in excess of the actual costs, if any, shall be credited against future required deposits, charges, and penalties. 9.13.4 Deposits for Disconnected Non-Member Water Services. Whenever Non-Member Water Service charges become delinquent and are disconnected, the Company may also require payment of a deposit before Water Service is reconnected. The Company may retain such deposit in an amount equal to one-fourth (1/4) the Owner’s annual Water Service charges for the preceding calendar year. The utility deposit shall be held for thirty-six (36) months or until termination of Water Service, whichever is earlier, and then applied to the Owner’s Water Service charges, or at the request of Owner, refunded if the account is paid in full. Any unapplied portion of the utility deposit shall be refunded at the termination of Water Service. Conditions for Reconnection. If Water Service is disconnected pursuant to this Section, the Water Service shall not be reconnected until any and all delinquent Water Service charges, disconnection and reconnection charges and all other applicable fees and costs, have been paid. Lien on Member’s Property. Delinquent Water Service Keys Breeze

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charges, including, without limitation, penalties, disconnection and reconnection charges, may be added to and become part of a Member’s Individual Assessment. If payment is not made on or before the due date set by the Board for payment of Individual Assessments, the Association may place a lien on the Member’s property in accordance with the CC&Rs, including without limitation, Article IV, Section 9. 9.16 Civil Action. Delinquent Water Service charges, fees and costs may be collected by any action in a court of competent jurisdiction against a person or persons responsible for payment of the Water Service charges. 9.17 Judicial Enforcement of Lien. The Company may bring an action in any court of competent jurisdiction to enforce or impose any lien on real property for Water Service charges, together with all fees and costs. 9.18 Fees and Costs as Additional Charge. If any legal proceeding is brought by the Company to collect Water Service charges, including an action for declaratory relief, a preliminary or permanent injunction or any collection and enforcement action provided in Section 9 of these Rules and Regulations, the Company shall be entitled to recover reasonable attorneys’ fees, costs and expenses which may be incurred by the Company in pursuing such legal action. Such attorneys’ fees, costs and expenses shall be deemed a Water Service charge pursuant to this Section 9. 9.19 Finding of the Board. The Board finds that the estimated cost of collecting and administering delinquent Water Service charges and losing the use of funds approximate the penalties, liabilities and disconnection and reconnection charges provided in these Rules and Regulations. 9.20 Relief by Board. The Board may find, in its discretion, that any provision of these Rules and Regulations may be suspended or modified as applied to a property and may grant relief from that provision as applied to that property.

SECTION 10 WATER CONSERVATION RULES 10.1 Irrigation Limits. Irrigation shall be calibrated and scheduled to deliver no more than the following: 10.1.1 March 20 – June 30 and September 1 – November 30: 1.5 inches per week 10.1.2 July 1 – August 31: 2.0 inches per week 10.2 Irrigation Scheduling. Subject to the exemptions below, landscape irrigation is permitted only on designated irrigation days, as follows: 10.2.1 Even Numbered Street Addresses: Monday, Wednesday, and Friday. 10.2.2 Odd Numbered Street Addresses: Sunday, Tuesday, and Thursday. 10.2.3 Landscape irrigation on Saturday is prohibited. 10.3 Exemptions from Irrigation Schedule. The following activities are not subject to the Irrigation Schedule set forth in Section 10.2: 10.3.1 Irrigating through a drip irrigation system. 10.3.2 Hand-watering with an automatic shut-off nozzle. 10.3.3 Irrigation of newly planted sod, within twenty-one (21) days from the date of installation. 10.3.4 Irrigation of seeded lawns, whether the lawn has been seeded through hydro-seeding or other means, within

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thirty (30) days from date of seeding. 10.3.5 Irrigation of plants in beds, whether annuals or perennials, within fifteen (15) days from the date of planting. 10.4 Prohibited Activities. No Owner, nor an Owner’s tenant, contractor, employee or agent may engage in any of the following activities: 10.4.1 Landscape irrigation between 6:00 am and 9:00 am. 10.4.2 Allowing water to flow over the ground surface or from sprinklers onto surfaces that are not able to absorb water or onto neighboring properties. 10.4.3 Use of a hose without an automatic shut-off nozzle. 10.4.4 Use of water to wash sidewalks, driveways, parking areas, tennis courts, decks, patios, or other improved areas. 10.4.5 Any activity prohibited by federal, state, or local law or regulation.

SECTION 11 NEW OR INCREASED WATER SERVICE 11.1 Dual-Service Lines Prohibited. A domestic Water Service line and private residence fire service line must be through separate lines installed from the Company Water System. All water connections existing as of August 1, 2017 are exempt from this requirement until the occurrence of a “qualifying event.” The following events shall be considered qualifying events requiring compliance with this Section 11.1: (a) application for new domestic Water Service, new private resident fire line service, or modification of an existing service connection size; (b) the Company’s receipt of notification from the City, or an applicant, that an application has been made for a building permit; (c) the Company’s knowledge and visual confirmation that the Owner has begun construction on a remodel, addition, or new construction; and (d) sale of the property to a new Owner. 11.2 Backflow Prevention Device. If reasonably necessary to protect the Company Water System, the Company may require the installation of a suitable backflow prevention device in accordance with the requirements of Section 6. 11.3 Size of Service Line. Each Owner is responsible for choosing the size of the Water Service line or fire suppression system line. If either line is not properly sized and the Company needs to reinstall a different-size line, the Owner shall be charged for parts and reasonable labor costs of the reinstallation. 11.4 Payment of Fees, Assessments and Charges. The Company shall not be obligated to provide Water Service to any applicant for Water Service until approval of the Company and after any and all fees, charges and past due amounts owing to the Company and associated with the property to be served have been paid in full. 11.5 Application for New Domestic Water Service. To initiate domestic Water Service, the Owner must provide the following to the Company: an application on the Company-approved form; a copy of the recorded grant deed showing the Member’s ownership of the property; payment of fees as set forth in these Rules and Regulations; and two (2) full size plan sets approved by the City Building Department and showing (i) the required domestic Water Service line size and location on the parcel, (ii) the total number of water supply fixture Keys Breeze

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units required according to the Uniform Plumbing Code, (iii) the required water demand, and (iv) the location of Water Service. 11.6 Application for New Private Residence Fire Service. To initiate private residence fire service the Owner must provide the following to the Company: an application on the Company-approved form; a copy of the recorded grant deed showing the Member’s ownership of the property; payment of fees set forth in these Rules and Regulations; and two (2) full size fire sprinkler system plan sets that have been approved by the City Fire Department and the City Building Department and including (i) the size of required private residence fire line service, (ii) the required backflow prevention device, and (iii) the location of the fire service line and fire service. 11.7 Modification of an Existing Service Connection Size. If an Owner desires to modify the size of an existing Water Service connection or private fire service connection, the Owner must provide the following to the Company: an application on the Company-approved form; a copy of the recorded grant deed showing the Member’s ownership of the property; and payment of fees set forth in these Rules and Regulations or as otherwise updated by the Company. 11.8 Fire Hydrant Permits. A Member wishing to use a fire hydrant for water on a temporary basis for construction activities may file an application on a Company-approved form. A fee for issuing each fire hydrant permit shall be collected by the applicant and a construction meter installed. The applicant shall pay for all fire hydrant water used in accordance with Section 8.5. 11.9 Criteria for Application Approval. If there is sufficient water and capacity available in the Company Water System to meet the requested service and the applicant has complied with these Rules and Regulations and other Company requirements, and is not delinquent in any amounts owed to the Company at the time of application, the Company shall approve the application for new or modified service. 11.10 City Approval Required. Notwithstanding the above, the approval of connection to the Company Water System will be null and void if construction of the applicant’s project is not approved by the City for the proposed improvement to be served by the Company; or if the City voids or cancels the application or permit for construction of the proposed improvement to be served by the Company. 11.11 No Water Transfers. Water connections may not be transferred from one parcel to another. 11.12 Credits for Previous Service. Credits for previous service will not be given if the previous service has been terminated.

SECTION 12 VIOLATIONS AND ENFORCEMENT 12.1 Violation. A violation of these Rules and Regulations shall be addressed according to the procedures below. All persons shall be strictly responsible for any and all acts of their agents, employees or independent contractors performed pursuant to the provisions of these Rules and Regulations. 12.2 Termination of Service. As a method of enforcing the provisions of these Rules and Regulations, the Company shall have the power to disconnect Water Service. The Company shall comply with the procedures provided in Section 9

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regarding disconnection of Water Service. 12.3 Public Hazard. In the event a violation of these Rules and Regulations results in an imminent public hazard or menace, including but not limited to low temperatures that threaten the integrity of the Company Water System, the Company Manager, or the Company Manager’s designee, may enter upon the premises without notice and take any action and incur costs and expenses as may be necessary to abate such hazard, including, but not limited to, disconnection of Water Service. The actual costs or reasonable value of any action taken and any costs and expenses shall be a Water Service charge payable by the Owner. 12.4 Delegation of Enforcement Authority. The TKPOA Security Department or TKPOA Architectural Control Department, as agents for the Company, are authorized to undertake any of the enforcement procedures set forth in this Section. 12.5 Infraction Not Requiring Immediate Corrective Action. In the event the Company becomes aware of an infraction that does not necessitate immediate corrective action, the Owner responsible for the violation will receive written notice thereof. Such notice will (i) describe the non-complying condition, (ii) request that the Owner correct the condition within a reasonable time specified in the notice, and (iii) advise the Owner of applicable appeal rights. The Owner will not be subject to fines during the reasonable time period specified in the notice. 12.6 Infraction Requiring Immediate Corrective Action. In the event the Company becomes aware of an infraction that necessitates immediate corrective action, the Company may undertake immediate corrective action in accordance with the procedures below: 12.6.1 First Notice of Violation. The first notice of violation will be issued to the Owner. This notice must state the nature of the violation and request that the Owner either (i) resolve the violation within a specified time period, which shall not be less than five (5) days or more than fourteen (14) days, or (ii) inform the Company of a timeframe by which the violation will be corrected. The notice shall also describe the consequences for non-compliance, including applicable fines. To avoid imposition of fines pursuant to the procedures below, the Owner must notify the Company when the violation has been corrected. A re-inspection of the property shall be conducted to verify compliance and shall be recorded in the file for that property. 12.6.2 Second Notice of Violation. Any violation that is not resolved according to the deadline set forth in the First Notice of Violation is subject to fines and penalties in the amount set forth in the TKPOA Annual Disclosure for the calendar year in which the first notice of violation was sent. A second notice of violation will be sent via certified mail stating that within seventy-two (72) hours of delivery or attempted delivery of the notice, the Owner must either remedy the violation(s) or contact the Company informing them of the date by which compliance will be achieved. 12.6.3 Third and Final Notice of Violation. If a violation has not been resolved according to the deadline set forth in the Second Notice of Violation, a Third and Final Notice of Violation will be sent via certified mail informing Keys Breeze

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the Owner that the violation has not been resolved and that at a specified date and time, the ACC will hold a hearing to consider imposing a fine. The hearing before the ACC shall be set no fewer than ten (10) days after delivery or attempted delivery of the Third and Final Notice of Violation. At the hearing, the Owner has a right to appear and address the ACC. If a fine is imposed, the Owner shall be notified in writing of the decision within fifteen (15) days following the ACC’s decision. 12.6.4 Recurrent Violations. In the event an Owner has already committed at least two (2) prior violations for which First Notices of Violation have been issued, the ACC may at its discretion bypass the First Notice of Violation and Second Notice of Violation and start the enforcement process with the issuance of a Third and Final Notification. 12.6.5 Due Date for Fines. For non-Member Owners, fines imposed pursuant to these Rules and Regulations are due by the due date for the next water bill, or an alternative later date set at the Company’s sole and absolute discretion. For Member Owners, fines imposed pursuant to these Rules and Regulations are due by the date set by the Board for the payment of Individual Assessments. Individual Assessments imposed upon a property are due by the date set by the Board of Directors. If the payment is not made on or before this date, the TKPOA, in accordance with its collection policy, may place a lien on the Member Owner’s property.

SECTION 13 APPEALS 13.1 Appeals. Any Owner may appeal a Company decision by filing a written appeal with the Company Manager, in a form approved by the Company, within ten (10) days from the date of any decision made in accordance with the provisions of these Rules and Regulations. 13.2 Committee Review. At an Owner’s request, an appeal may be considered first by a committee, consisting of two (2) members of the Board appointed by the Board President for an informal review. After reviewing the appeal, the committee shall provide the Owner with written notification of its recommendation. The committee’s recommendation will be reported to the Board at a duly called regular or special meeting of the Board. Based upon the committee’s recommendation, the Owner may pursue or withdraw his or her appeal to the entire Board. 13.3 Board Review. Notwithstanding whether a request for review by a Board committee is made as provided in Section 13.2, an appeal may be made directly to the entire Board at a duly called regular or special meeting of the Board. After reviewing the appeal, including any recommendation by a Board committee, the Board may, in its discretion, affirm, reverse, or modify the decision and impose such conditions as it deems appropriate. The Board’s decision shall constitute a final decision on the matter.

AUGUST 2018

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A trusted name in Tahoe Keys real estate for over 30 years.

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A trusted name in Tahoe Keys real estate for over 30 years.

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