Keys Breeze November 2018

TKPOA Prevails Again in Contempt of Court Case – TKM&YC vs TKPOA “Free Launching and Retrieval for all Property Owners Restored” PG. 29

2019 ANNUAL BUDGET & DISCLOSURE PG. 16 2019 VACATION RENTAL PROGRAM & TKPOA PERMIT FEE PG. 14

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

NOVEMBER 2018

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

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

A SAMPLE OF ADELE’ S RECENTLY SOLD LISTINGS:

530.545.0888 | 866.541.2200

AdeleLucas.com

SOLD

SOLD

1978 Aloha | $1,120,000

1991 Aloha | $2,375,000

SOLD

SOLD

2003 Kokanee | $971,000

SOLD

16 Lighthouse Shores | $5,750,000

1923 Marconi | $1,095,000

SOLD

SOLD

425 Emerald | $930,000

SOLD

609 Danube | $400,000

SOLD

SOLD

1990 Kokanee | $2,150,000

SOLD

415 Emerald | $965,000

SOLD

AdeleLucas.com

1987 Aloha | $2,100,000

2181 Catalina | $760,000

2021 Kokanee | $1,230,000

BRE# 00838770

president’s letter

2019 President's Letter

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2018 Calendar

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2018 Board Actions Summary

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Where in the Universe is Keys Breeze 7 Bear Boxes

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Text of Proposed Changes: Board Meeting & Board Member Conduct Rules 12 2019 Vacation Rental Program & TKPOA Permit Fee 14 2019 Annual Budget and Disclosure

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Text of Proposed Changes: Rules & Regulations for Water Service 19 TKM&YC vs TKPOA

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starts a new budget year for the Tahoe Keys Property Owners Association (TKPOA). Property owner dues are the primary funding source for all operations, maintenance, and projects for our community. Included in the property owner dues is funding for the Tahoe Keys Water Company. Our water company provides potable drinking water, and water for irrigation and household use. Twenty five percent of property owner dues are to fund the Water Company operations. The water rate paid by Tahoe Keys property owners is a real bargain for the high quality water delivered to our homes.

How does the Tahoe Keys residential "TWENTY FIVE PERCENT water rate compare to other water utilities?

OF PROPERTY OWNER Water rates for other Tahoe water utilities are 1.5 to 4 times higher than Tahoe DUES ARE TO FUND Keys Water Company rates based on water THE WATER COMPANY usage and meter fees. Large water utilities are required by California state law to OPERATIONS." meter all water users including residential customers. Metered water rates are tiered.

The more water used by a water utility customer, the higher the cost per cubic feet or gallons of water used. Water meter fees depend on the size of the water service lateral. Tahoe Keys water is delivered at a flat fee. All residential property owners pay the same for water service from the Tahoe Keys Water Company.

What is the quality of water delivered by the Tahoe Keys Water Company?

Tahoe Keys water is better quality than some bottled water sold by stores.

Water quality test results show that Tahoe Keys water measures 1/2 of the

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: Ron Francis Printed on recycled paper with soy-based inks.

IS THE OFFICIAL PUBLICATION OF THE TAHOE KEYS PROPERTY OWNERS ASSOCIATION

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

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

Kirk J. Wooldridge

General Manager, Ext. 224 Operations Manager, Ext. 228 Keys Breeze

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Administrative Assistant, Ext. 223

Don Havard

Accounting Manager, Ext. 227

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

2018–2019 BOARD OF DIRECTORS

Tom Callahan

Robert Meyers, VICE PRESIDENT

Facilities Manager, Ext. 226

James Brooks

Project Coordinator/ Property Manager, Ext. 241

TAHOE KEYS PROPERTY OWNERS ASSOCIATION

Heather Houston

Jo Ann Wilson

Jim Siegfried, TREASURER Sean Ward, SECRETARY Dennis Daniel, DIRECTOR Jim Woller, DIRECTOR

Bill Spicer

Pool Supervisor (530) 545-4124

Security (530) 545-0847

NOVEMBER 2018

John Gonzales, PRESIDENT

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Rick Wood, DIRECTOR

CONTINUATION

total dissolved solids (TDS) of some national brands of bottled water. Many water utilities deliver water to their customers with TDS concentrations 10 times the level of Tahoe Keys water. A small amount of chlorine is added to Tahoe Keys water (to one of three wells) as required by state permit. Many water utilities add at least 10 times the concentration of chlorine to the water delivered to their customers as applied to one Tahoe Keys well. Tahoe Keys water is very soft in comparison to other water supplies. Many water utilities deliver potable water that is seven times the hardness of Tahoe Keys water. Water that is soft and low in TDS is much better tasting. I often see guests of Tahoe Keys homeowners with purchased bottled water. Tahoe Keys drinking water is so good; it is a waste of time and money to bring bottled water into Keys homes and the bottles add to plastic waste.

The Tahoe Keys Water Company delivers an outstanding product into all of our homes at a very reasonable price. Our Association is very fortunate to have experienced Water Company staff that maintain and operate the Tahoe Keys Water system. Our Water Company Manager, Richard (Rick) Robillard is a licensed professional engineer and certified water system expert. To obtain these licenses, a person must have the education and experience in water treatment and distribution to be certified by State Licensing Boards. Rick and his water operations team are responsible for delivering consistently high quality, great tasting water to Tahoe Keys homes. Through the dedication, knowledge and experience of the Tahoe Keys Water Company operations staff we have water that is safe and good tasting, and their expertise saves money for all of us in Tahoe Keys.

When you see your dues billing statements, remember the bargain you are receiving for your water service. When you see Tahoe Keys staff at the front desk or out working to keep our community beautiful, well maintained, and providing safe and reliable water; thank them. They work hard for all of us.

Respectfully, John Gonzales,

TKPOA BOARD PRESIDENT

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CALENDAR 2018 NOVEMBER 2018 5 6 17 17 20 TBD

ACC Meeting Water Quality Committee Meeting Board of Directors Executive Session Board of Directors Regular Meeting Finance Meeting Waterways Usage Committee

DECEMBER 2018 3 15 15 18 20 TBD TBD

ACC Meeting Board of Directors Executive Session Board of Directors Regular Meeting Finance Meeting Town Hall Forum – TBD Water Quality Committee Meeting Waterways Usage Committee

Custom Boat Docks

9:00 a.m.

10:00 a.m.

8:00 a.m.

2:00 p.m.

10:00 a.m.

TBD

Shoreline General Engineering Inc. Docks Ramps Pile Driving Platforms

9:00 a.m.

8:00 a.m.

2:00 p.m.

10:00 a.m.

TBD TBD TBD

Piers Fencing Welding Custom Railings

530.545.3188

CA LIC # 692692

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

www.docksndeckslaketahoe.com

STEVEN LAPKIN PHOTOGRAPHY 503 914 8025

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www.stevelapkin.com

Keys Breeze

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NOVEMBER 2018

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BOARD ACTIONS SUMMARY

2018 EXECUTIVE SESSION / BOARD OF DIRECTORS MEETING

(OCTOBER 20TH)

By Jo Ann Wilson, Administrative Assistant

OCTOBER 20TH — EXECUTIVE SESSION BOARD ACTIONS

Reviewed eight personnel matters.

Reviewed three member disciplinary matters.

Reviewed ten legal matters.

Reviewed one contract.

Approved the TKPOA Volunteer Appreciation Event for a budget of $2,300.

Approved the TKPOA Staff Holiday Party Proposal for a budget of $3,000.

Approved the Employee Holiday Bonus Program.

Approved the 2019 Work Safe Program.

Approved entering into a tolling agreement for PCE cost recovery, and to get additional advice from Coopers & Scully P.C. regarding protecting TKPOA’s options from other potential defendants. z Approved the Lighthouse (LHS) mediation terms, subject to legal counsel's alternative means of access without utilizing the geometric access. z Approved establishing a Board Subcommittee to include the President, Vice President, and Treasurer to give a recommendation for the General Managers compensation. z Contract review of Article IV Sections 4.01 and 4.02. z z z z z z z z z

OCTOBER 20TH — BOARD OF DIRECTORS MEETING BOARD ACTIONS

z Approved the 2019 Operating Budget Approval (Common, Water Company, Water Quality, Channels & Lagoons) FOURTH DRAFT. z Approved the 2019 Reserve Fund Balances Projections (Common, Water Company, Water Quality, Channels & Lagoons, Coves and Subdivisions) FOURTH DRAFT. z Approved the 2019 Reserve Funding Plan & 30 Year Expenditure Plan (Common, Water Company, Water Quality, Channels & Lagoons) FOURTH DRAFT. z Approved the 2019 Annual Assessments (Common, Water Company, Water Quality, Channels & Lagoons) FOURTH DRAFT. z Approved the 2019 Townhome/Cove and Subdivision Operating Budgets. z Approved the 2019 Townhome/Cove and Subdivision Reserve Funding Plan & 30 Year Expenditure Plan. z Approved the 2019 Annual Assessments Townhome/Coves and Subdivisions. z Approved the Adoption of Proposed Changes to the Tahoe Keys Water Company – Rules and Regulations for Residential and Commercial Water Service. z Approved the Adoption of Proposed Changes to the Tennis and Pickle Ball Court Rules. z Approved the Proposed TKPOA Operating Rules Changes for TKPOA Board Conduct Rules – For 30 Day Membership Review Period. z Approved the 2019 TKPOA VHR Permit and Fee Letter. z Approved the Allocation of funds from the Sale of Cove 5 Unit #3 as submitted with the total allocation of the $20,000 to reflect $16,702.56 to Cove 5, Common $1,876.63, Water Company $896.80 and Water Quality $524.01.

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NOVEMBER 2018

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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.

Don Havard, Panama Canal.

CLEARING GATES

Thank you!

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FIND YOUR EXCELLENCE

Lila Lapanja, Barton Athlete / Patient

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530.600.1976 BartonOrthopedicsAndWellness.com Keys Breeze

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NOVEMBER 2018

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By Architectural Control Committee

T

he City of South Lake Tahoe (CSLT) has granted the Tahoe Keys Property Owners Association (TKPOA) an exemption to the VHR Ordinance for mandatory Bear Box requirements.

The following is a brief history of how we arrived at this exemption.

During 2014, the TKPOA Board of Directors asked the Architectural Control Committee (ACC) to work with staff to draft a Bear/Garbage Management Plan for our Association.

The main reasons for the Board’s action were: 1. The resident bear population in the Tahoe Keys had grown to about nine individual animals.

2. The bears were encouraged to stay in the Keys due to the prevalence of uncontrolled human food sources (open dumpster containers at the pavilion and townhomes, open trash containers on common areas, uncontrolled residential garbage at single family homes), and unacceptable behaviors by some residents and their tenants (allowing bear dens on properties and actual feeding of bears). We even found a bear den under the pavilion!

To address these issues, TKPOA produced the very first comprehensive Bear/Garbage Management Plan by a private entity here in the Lake Tahoe Basin which stated:

2. Property owners, their guests and tenants are encouraged to use animal resistant garbage containers with lock-tops, even on pick-up day. Several species of wild animals can make quite a mess in just few hours when they get into open-topped containers (magpies, raccoons, coyotes, ground squirrels).

3. TKPOA provides a bear-proof dumpster facility for property owners, available 24/7 at the pavilion office.

All trash containers on common areas were converted to bear-proof designs. Townhome developments were required to convert their open dumpsters at centralized locations to bear-proof designs.

4. TKPOA implemented an Information & Education Plan (I&EP) for its members, visitors, guests and tenants.

These handouts are available for download from the TKPOA website or hard copy from the pavilion office.

5. Planting of new fruit trees is prohibited, existing trees may be kept if fruit is harvested and removed when ripe. Outdoor feeding of pets and wild birds and geese is highly discouraged. These too are human provided food sources that can throw-off natures balance.

6. TKPOA Security and ACC compliance officers’ steppedup enforcement for trash violations. If your garbage is unsecured or on the street before 6 a.m. Friday, TKPOA maintenance crews will remove it and a fee of $75 will be charged. ACC can also levy a fine of up to $250 for each occurrence.

1. Garbage must be secured away from access from animals at all times. Garbage may only be set to the curb for pick-up after 6 a.m. on Fridays. An exception was provided for non-garbage landscape and construction materials.

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3. If all TKPOA properties had a double bear box at curbside, in many areas property owners would feel like they are hemmed-in by a “wall-of-steel”. So, this is also an aesthetic consideration.

The results were impressive. The dozens of calls and complaints from homeowners and tenants over bearencounters and break-ins have all but evaporated since 2015. At last count, only 2–3 individual bears could be identified as frequenting the TKPOA portions of the Tahoe Keys.

4. Part of the CSLT ordinance requires multiple-boxes for VHRs, depending upon the allowed over-night capacity.

There are about 300 VHRs in the TKPOA. Enclosures for as many as 2, 4 or even 6 standard trash cans would be required at each VHR property.

So, why did TKPOA ask the CSLT for an exemption from the Bear Box ordinance?

1. Small lots close together—The Tahoe Keys residential developments (single-family and town homes) were designed for high-density use. The lots (parcels) are compact, being generally much smaller than are those found outside the TKPOA. Then consider that up-to 50% of these small (waterfront) lots are actually under the water, in the channels and lagoons. Often there is very little space between lots where they meet at the curb.

2. Putting bear boxes at curbside in areas where driveways of adjacent lots are close presents many problems such as parking access, snow storage, first-responder access, etc.

5. The ACC and Board of Directors correctly determined that TKPOA property owners had several viable options for properly securing and removing human garbage without the need for bear boxes. Property owners renting their properties routinely require cleaning crews to remove garbage between tenant reservations; TKPOA maintains community bear-proof dumpsters 24/7 at the pavilion; South Tahoe Refuse (STR) provides for free drop-off of garbage at its Ruth Avenue facility (easy access for owners and guests leaving town).

6. Bear boxes are the most costly option for storing and removing solid waste. Not only do they cost about $1,000 per double-can enclosure to install, they forever cost about 3–4 times more to service/pick-up.

2019 ARCHITECTURAL CONTROL COMMITTEE MEETING SCHEDULE January 7

February 4

March 4

April 8 & 22

May 6 & 20

June 10 & 24

July 8 & 22

August 5 & 19

September 9 & 23

October 14

November11

December 9

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

SCHEDULE Keys Breeze

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keysboatdocks.com | dgayner@ymail.com

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NOVEMBER 2018

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7. Why are bear boxes more costly to service? The average “stop time” for STR trucks removing garbage set-to-the-curb on pick-up day is about 10 seconds, while the average “stop time” to service a double-can bear box is about 25 seconds due to the bear box needing to be opened (unlocked) and each container checked for contents. Think about a VHR having up-to 4 or 6 cans to check! Then the boxes must be re-secured (locked) before the truck can proceed to the next stop. Now consider that about 60–70% of all single-family homes are unoccupied during any given week. Potentially, if every TKPOA single-family home had one double-can bear box, needing to be checked weekly, year-round, our collection costs would soar!

8. The bottom line for those wanting bear boxes is for personal convenience.

They could avail themselves of the several options for proper storage and removal of garbage. Think of the property owner with a bear box who uses their home 5–10 weeks a year...but expects their surrounding neighbors to “look at” the installation 52 weeks a year, then help pick-up the extra cost of the special servicing STR requires of the bear box.

9. If at some point in the future, STR makes provisions for servicing bear boxes beyond the 20’ front set-back, and is willing to charge that resident the appropriate amount for this extra service, we may be able to make more general use of bear boxes. Currently STR depends on a fee design where all customers underwrite the total cost of collection, much like an insurance company.

10. TKPOA and the ACC are committed to working with our property owners to help them to properly secure and remove the garbage portion of their solid waste. Please check with ACC if you need assistance in this regard. ACC does make allowances for special storage designs, but they are not allowed within the 20’ front setbacks, and may need to be screened from view.

If a homeowner is still interested in installing a bear box, an application must be submitted to the ACC for review. There are ACC concerns as to size and restrictions to location and visibility. Applications are reviewed on a case-by-case basis.

Any questions can be forwarded to Linda Callahan, Architectural Control Department Manager at Lcallahan@tahoekeyspoa.org or by calling (530) 5426444, ext. 239.

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THE 4TH ANNUAL

Tahoe Film Festival

T

he 4th Annual Tahoe Film Fest presented by SWEP, Sierra Watershed Education Partnerships, will take place December 6 through 9 at several different locations through the North Lake Tahoe and Truckee area, including: Incline Village Cinema, Northstar Village Cinema, Truckee Community Arts Center (downtown Truckee) and the Crystal Bay Club.

Tahoe Film Fest brings over 25 environmental and independent feature length and award winning films. Among the many films to be screened at the festival is “Stay Human,” a documentary film by music star, Michael Franti, who will also be at the festival.

What does it mean to be human? What connects people around the globe? How can we celebrate the beauty of love and life in a world turned upside down? These are just a few of the questions world-renowned musician Michael Franti explores in this captivating and stirring documentary.

Opening night of the festival will feature “The Push,” a film directed by North Tahoe local Grant Korgan, an outdoor sports enthusiast, who is recovering from a spinal cord injury. Grant, along with two seasoned explorers, became the first spinal cord injured athlete to PUSH himself 100 miles across the South Pole. Grant Korgan and other local filmmakers will be present at the festival.

Tahoe Film Fest is celebrating the 50th anniversary of “Butch Cassidy and the Sundance Kid.” This film and accompanying documentary about the making of the film will be shown at the festival. The filmmakers of the documentary will be present.

Special guests will be present and special events will be held each evening in Truckee and at the Crystal Bay Club. For information about the films, schedule and to purchase tickets, visit the website at www.TahoeFilmFest.org or visit the Tahoe Film Fest Facebook page.

Purchase tickets online beginning on November 1 or at the door for individual movies for $12 each, or you can purchase an all access pass, online presale only, for $60 (limited supply available). Proceeds from all www.TahoeFilmFest.org ticket sales benefit SWEP’s environmental education programs for our local K-12 youth.

4th Annual Tahoe Film Fest

Over 25 Environmental & Independent Films, Special Events & Special Guests

December 6-9 North Lake Tahoe and Truckee

www.TahoeFilmFest.org for Tickets and Information

All ticket sales benefit Sierra Watershed Education Partnerships Keys Breeze

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NOVEMBER 2018

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NOTICE OF CHANGE IN ASOCIATION RULES

TEXT OF PROPOSED CHANGES

(The entire text of the proposed Board Meeting and Board Member Conduct Rules are new additions to Association Operating Rules)

O

or company who is seeking a business or financial relationship with the Association.

• Seek or obtain preferential treatment for themselves or their relatives, use Association property, services, equipment or business for their own benefit in any material respect, except as is provided to all members of the Association.

n October 20th, 2018 the TKPOA Board of Directors approved the following Board Meeting and Board Member Conduct Rules for a 30 day membership review period. These rules will be considered for adoption at the December 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.

BOARD MEETING AND BOARD MEMBER CONDUCT RULES The Tahoe Keys Property Owners’ Association Board of Directors adopts the following Board meeting and Board Member Conduct rules. These rules are intended to facilitate the Board’s administration of its meetings and to set forth certain director and member protocol.

A. DIRECTOR RESPONSIBILITIES The general duties for directors are to enforce the Association’s governing documents, collect and preserve the association’s financial resources, insure the association’s assets against loss, and keep the common areas maintained and in a state of good repair. To fulfill that responsibility, directors must use their best efforts to: —Regularly attend Board meetings.

—Review material provided in preparation for Board meetings.

—Review the Association’s financial reports.

—Make reasonable inquiry on matters on the agenda before making decisions.

B. DIRECTOR CONDUCT In general, directors must conduct all dealings with third parties, in good faith, and in the best interests of the Association, and to safeguard information that belongs to the association.

1. Private Gain, Self-dealing. This occurs when directors make decisions that materially benefit themselves, spouses, friends, relations, or anyone who shares the person’s residence, at the expense of the Association. Such benefits may include money, privileges, special benefits, overlooking delinquency or violations of the Governing Documents, gifts or any other item of value. Accordingly, no director shall: • Solicit or receive any compensation from the Association for serving on the Board or any committee.

• Negotiate or provide instructions to, or contract with vendors without prior Board approval.

• Solicit or receive, any material gift, gratuity, favor, entertainment, loan or any other thing of value for themselves or their friends or relations, from a person KK ee yy ss BB rr ee ee zz ee

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2. Confidential Information. Directors are responsible for protecting the Association’s confidential information. As such, they may not use confidential information for their personal benefit or that of their friends or relatives. Directors shall not share any confidential information obtained as a Board member with any non-board members or third parties (other than agents, representatives or employees of the Association who also are bound to maintain the confidentiality of the information received).

Confidential information includes, without limitation: • Private or personal information about any Association member.

• Private or personnel information about any of the Association employees.

• Identifying Association members subject to disciplinary matters.

• Personal and specific information about any member’s delinquent assessment account.

• Legal matters in which the Association is or may be involved. Directors may not discuss the merits of pending legal matters in which the Association is involved, with persons not on the Board. Failure to follow these requirements may constitute a breach of the attorneyclient privilege and may result in the loss of confidentiality in the information released.

3. Accuracy of Information. Directors may not knowingly misrepresent facts. All Association data, records and reports conveyed must be accurate and truthful, in all material respects, and prepared in a proper manner.

4. Interaction with Vendors and Management. To ensure efficient management operations, avoid conflicting instructions from the Board to management and avoid potential liability, directors shall observe the following guidelines: • The Board president shall serve as liaison between the Board and management and provide direction on dayto-day matters including but not limited to determining items to be on the agenda for upcoming meetings.

• Directors may not give direction to management,

SNEOP VT EE M M BB EE RR 22 00 11 88

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employees or vendors unless expressly authorized by the Board or these rules to do so.

• No director may interfere with the conduct of the Board during meetings or at any time management or a designated Board member is carrying out the decisions of the Board.

• Directors are prohibited from harassing, threatening, or intimidating management, employees, vendors, directors, committee members, and/or owners, whether orally, in writing, physically, or otherwise.

5. Professional Behavior. Directors are obligated to act with proper decorum during Board meetings or at any time they are carrying out the business of the Association. Although a director may disagree with the opinions of others on the Board, or with the vote of the majority, they must treat all Board members with respect and carry out the decisions of the Board as voted by the majority. Directors shall act in accordance with Board decisions and shall not act unilaterally or contrary to the Board’s decisions. Further, directors are expected to conduct themselves with courtesy toward each other, and toward managing agents, staff, vendors and Association members.

C. BOARD MEETING CONDUCT 1. General Board Meetings are open to Association Members Only. Tenants and guests are not permitted without express approval of the Board of Directors. Any Association Member may attend Association Board meetings unless the Board is meeting in Executive Session. Executive Session topics include: • Litigation • Matters relating to the formation of contracts with third parties • Member discipline • Personnel matters • Or to meet with a member, upon the member’s request, regarding the member’s payment of assessments 2. Association Members in attendance are permitted to address the Board only at the designated Members’ open forum portion of the meeting, or unless otherwise permitted by the Chair of the Board meeting, and at no other time. The Board may establish sign-in procedures or other methods for identifying those members who wish to be heard. Member comments made during Members’ open forum may be noted in the minutes at the discretion of the secretary or Board; however, the official Board Meeting minutes will not contain the Member’s verbatim comments.

3. In order to allow the Board sufficient time to cover the Board meeting agenda items, members will be permitted to speak for up to three minutes, unless the Board grants a member’s request to speak for a longer period of time, or if extenuating circumstances require a longer period.

4. Pursuant to Civil Code with limited exception, the Board is not permitted to discuss or take action on any item that is not on the Board meeting agenda. Therefore, the Board will not comment upon a member’s open forum presentation, or respond to questions raised by a member during the member’s Keys Breeze

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open forum portion of the Board meeting.

5. Directors and Association Members and any other individuals attending the Board meeting shall conduct themselves in a respectful, professional manner. The following conduct will not be permitted: a. Rude or profane language or personal attacks b. Racial, ethnic, gender, religious or age-based comments c. Shouting, yelling, screaming, fist pounding or similar conduct d. Physical threats, including non-verbal communications such as gestures or using body language in such a way as to intimidate. e. Interrupting others recognized by the Chair or otherwise permitted to speak f. Any behavior that is intended to or has the effect of interfering with the orderly business of the Board meeting.

6. Policy Against Tape Recording or Video Taping Board or Association Meetings Board meetings are open to Association members only.

Members in attendance have the right to speak freely without fear or intimidation of being recorded without their consent.

Finally, the Board has the authority to adopt rules regulating conduct of attendees at Board meetings. As such, it is the policy of this Board that taping or recording of Board or Association meetings by members or directors is strictly prohibited D. VIOLATIONS OF BOARD MEETING CONDUCT RULES Directors and Association Members who violate these rules are subject to discipline including, but not limited to: Violation by a member: a. Exclusion or removal from the Board meeting b. Fines c. Other appropriate discipline authorized by law or the Governing Documents Violation by a director: a. Censure b. Removal as an officer of the Board c. Recall by the membership, and, d. Legal action e. Other appropriate discipline authorized by law or the Governing Documents Any action knowingly taken by a Director in violation of this Policy may result in a loss of Directors and Officers liability coverage or indemnity for that director in the event of a claim.

Any Association Member in violation of this Policy may be subject to fines, penalties, or other discipline.

Adopted by majority vote of the Board this _____ date of ____________, 2018 Dated: _________________________________________ PRESIDENT Dated: _________________________________________ Secretary

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2019

VACATION RENTAL PROGRAM

& TKPOA Permit Fee

By Heather Houston, Operations Manager

I

n 2016, the Tahoe Keys Property Owners Association (TKPOA) Board of Directors adopted the Owner, Renter, and Vacation Policy, Rules, and Regulations, which outline nuisance operating rules specific to TKPOA’s vacation rental program, including a requirement for all vacation rental properties within the Keys to obtain an annual TKPOA Rental Permit for a fee paid to TKPOA. For the 2019 calendar year, the permit fee has increased to $400 as approved as part of the 2019 Annual Budget at the October 20th, 2018 Board of Directors Meeting. Each year the TKPOA provides property owners through the annual billing and the Annual Disclosure a mailing of all the fees. If property Owners join during the calendar year they are still responsible for the entire fee, and will not be offered a prorated fee. TKPOA VHR Permit Applications will need to be filled out by all property owners acquiring a new TKPOA VHR Permit and current TKPOA VHR Permit holders needing to update or change information on the current permit application on file. Once a property owner pays the fee and fills out a new application, if needed, TKPOA will issue a permit that must be displayed in a front window of the rental property. The Architectural Control Committee agreed that the existing vacation rental posting requirement is for a “permit” not a “sign” consequently no change is required to our “Sign Restrictions”. Nor is this a violation of the CC&R

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Article VIII Section -7 Sign, on page 41.

Current California Case Law on this issue has indicated a “good faith estimate that would be sufficient to determine this charge or fee”, and this action has also been reviewed by TKPOA Legal Counsel. There is no legal requirement that a comprehensive study or investigation is conducted to determine this fee, and keep in mind to provide a comprehensive study would require additional TKPOA Staff/Board time at a cost. The TKPOA Board of Directors is allowed to implement this annual fee based on the provisions of the Davis-Stirling Act Civil Code section§5600. Duty to Levy Assessments; Fees to Defray Costs. “An association shall not impose or collect an assessment or fee that exceeds the amount necessary to defray the costs for which it is levied.”

An Association can adopt different rules and fees for property owners who engage in short-term rentals.

The Tahoe Keys Property Owners Association Rental Permit annual fee will be provided each year to the TKPOA property owners through a separate annual billing if you have applied for or have a current City of South Lake Tahoe (CSLT) Vacation Rental Permit. If you will not be renting your home as a Vacation Rental, TKPOA will need written documentation from the property owners stating that you will no longer be renting your property, even though you have applied for and have a City of South Lake Tahoe (CSLT) Vacation Rental Permit.

The TKPOA Front Desk operations has staffing at the TKPOA Pavilion offices open from 8:30 a.m.–4:30

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p.m. seven days a week, Monday through Sunday. The Front Desk hours are to accommodate property owners, property owners guests, and vacation rental guests.

Currently our process to sell Recreational Passes is not an integrated Point of Sale system, so the tracking of the types of “Guests” these passes are sold to is through a manual system at the point of sale and also tracked at the point of entry at the indoor and outdoor pools. The TKPOA Member ID and Recreational Pass Policy, Fees and Indoor/Outdoor Pool Performance Tracking can be found on the TKPOA website at www.tkpoa.org.

Our TKPOA Maintenance, Landscaping, Water Company, Water Quality, and Security Department respond to issues and concerns that occur in our overall community, our common areas and townhome common areas that are at times the result of impacts from vacation renters, from nuisance issues to damage to TPKOA property or homeowner property. This is documented through Security Incident Reports, Maintenance Work Orders, Water Company and Water Quality Work Orders, Police Reports, Insurance Claims, Member Letters and Lawsuits filed against the TKPOA. As part of providing improved enforcement of the “Owner, Renter, and Vacation Policy, Rules, and Regulations” moving forward TKPOA Staff has worked towards better classification of these nuisance calls.

This is a public relations process at best, and often times this depends on the cooperation of the actual occupants

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alleged of a nuisance complaint to provide the TKPOA Staff with accurate information.

Letters and invoices will be going out to all “Vacation Rental” TKPOA property owners based on the City of South Lake Tahoe Vacation Rental Permit list, with the $400 annual fee due by December 31, 2018. Once a property owner pays the fee and returns their permit application(s) if needed, TKPOA will issue a permit that must be displayed in a front window of the rental property. (Permits are not transferable). For those property owners whom have not submitted payment, in accordance with the “Owner, Renter, and Vacation Renter Policy, Rules, and Regulations,” the Board of Directors may decide to hold a disciplinary hearing to consider imposing a fine and/or suspending member rights, which may include suspension of member I.D. cards and Short Term Recreational day passes sold to renters of the delinquent property, for non-payment of the 2019 Vacation Rental Permit fee.

The adopted and approved “Owner, Renter, and Vacation Policy, Rules and Regulations are available on the TKPOA website at www.TKPOA.com, and at the TKPOA Pavilion Office. The goal of this adopted Policy, Rules and Regulations is to improve the TKPOA property owners knowledge and compliance to “Owner, Renter, and Vacation Policy, Rules and Regulations”, by themselves, their family property owners and their guests.

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2019 Annual Budget

& DISCLOSURE

By Kirk Wooldridge, General Manager

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he 2019 Annual Budget was approved at the Saturday October 20th, 2018 Board of Directors Regular Board Meeting. Preparation of the budget that was approved followed six months of work that began in April and is the result of significant efforts by the Tahoe Keys Property Owners Association (TKPOA) Staff, the Finance Committee, the Cove Advisors, and the Board of Directors.

The “Budget� actually consists of 19 operating budgets and 20 reserve funding plans. The operating budgets address the planned operating revenues and expenses for the four major funds (Common, Water Company, Water Quality, and Channels & Lagoons), 12 townhouse subdivisions, and four single-family subdivisions.

Each year, the Association must distribute an "Annual Budget Report" and an "Annual Policy Statement" these items and additional required items are included in TKPOA Annual Disclosure. According to TKPOA Bylaws ARTICLE XII, Member assessment Obligations and Association Finances, Section 5: Budgets and Financial Statements: (a) A pro forma operating budget for each fiscal year consisting of at least the following information shall be distributed to Members not less than 45 nor more than 60 days prior to the beginning of the fiscal year: (i) Estimated revenue and expenses of the Association on an accrual basis; (ii) The amount of the total cash reserves of the Association currently set aside for the future repair or replacement of, or addition to, those major components of the Common Areas and Common Facilities which the Association is obligated to maintain and for contingencies; (iii) An estimate of the current replacement cost of the estimated remaining useful life of, and the methods of funding to defray repair or replacement of, or additions to, those major components of the Common Areas and Common Facilities which the Association is obligated to maintain; (iv) A general statement setting forth the procedures used by the Board of Directors in the calculation and establishment of reserves to defray the cost of repair, replacement or additions to major components of the Common Areas and Common Facilities which the Association is obligated to maintain.

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ANNUAL BUDGET & DISCLOSURE

On October 31st, 2018 the TKPOA Annual Disclosure was mailed out to all property owners. All these required Disclosure documents must be distributed by "First-class mail, postage prepaid, registered or certified mail, express mail, or overnight delivery by an express service carrier." (Civil Code §4040.), however upon written consent of members, associations may distribute documents and disclosures electronically, currently the TKPOA has decided to mail the Disclosure Documents.

The Davis-Stirling Common Interest Development Act is the California Civil Code and (Section §5300 and §5570) contains the detailed Disclosure requirements and the deadlines for most of these required items.

In addition to the required items the TKPOA has included some additional information to further lend explanation to the documents required. The following items are included in the 2019 Annual Disclosure the TKPOA Property Owners will be receiving by mail: 1. Disclosure Documents Index - Civil Code §5300 2. Pro Forma Operating Budget - Civil Code §5300 3. Notice of Assessment Increases - Civil Code §5615 4. 2019 Budget and Assessment Summary - Civil Code §5300 5. Assessment Collection Policy - Lien and Collection Policy Civil Code - §5730, §5310 6. Notice of Assessments, Foreclosures and Payment Plans - Civil Code §5730, §4040(b) 7. Arbitration/Mediation of CC&Rs Disputes - Civil Code §5925 8. Membership Lists - Civil Code §5210, §5200 (a) (9) 9. Member Contact Information - Civil Code §4041, §5650(a), §5660

10. Secondary Address Notification Request - Civil Code §5650(a), §5660 11. Electronic Communication Authorization Form Corporations Code §20 12. Insurance Coverage Summary - Civil Code §5300 (a)-(b) 13. Architectural Changes Notice - Architectural Guidelines and Procedures - Civil Code §4765 14. Notice of Intention to Adopt or Change Rule - Civil Code §4360 15. Monetary Penalties Schedule - Civil Code §5850 16. TKPOA Fee Schedule 2019- Civil Code §5850 17. Board Minutes Access - Notice of Right to Minutes of Board Meetings - Civil Code §4900 18. Notice of Document Request Costs - Civil Code §5210 19. Official Communications for the Association - Civil Code §5310 20. Notice of Regular Board Meetings - Civil Code §4920, Corporations Code §5016 21. Disclosure requirements of Business & Professions Codes Section 11500 – 11506 22. Assessment and Reserve Funding Disclosure Summary - Civil Code §5570 23. Annual Update of Reserve Study - Civil Code §5570 24. Direct Debit Payment Authorization Agreement For the 2019 Budget the Common, Water Quality, Water Company and Channels & Lagoons, total assessment is a slight increase by 16.6%. The reasons for this increase has achieved through the following significant changes with the Common budget revenue overall increased by 14.4% over the 2018 Budget in the

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following areas: Vacation Rental Fees 28.9%, the projected sales of the Lake Tallac Parcel for $200,000 and 3.5% in Assessment Revenue. There is no cash carry over income for the 2018 Fiscal Year. The overall year-to-year changes in the operating budget expenses represent an overall 14.4% increase in operating cost.

The following Common expenses increased over the 2018 Budget that are significant, Telephone/Internet by 37.5%, Homeowner Communication by 25.0%, Administrative Wages by 4.9%, Health Insurance by 14.5%, Business Meetings by 150.0%, Gate Access Cards by 100.0%, Collection Costs by 100.0%, Recreation Supplies by 20.0%, Maintenance Wages by 4.1%, and Landscape Wages by 12.9%. Some significant decreases are budgeted as follows, Workers Compensation – Administration decreased by -49.8/%, Payroll Overhead decreased by -57.1%, Admin Outside Services decreased by -24.4%, Workers Compensation-Security decreased by -58.8%, Workers Compensation-Recreation decreased by -38.6%, Workers Compensation-Maintenance decreased by -38.4%, and Bad Debt decreased by -50.0%.

The 2019 Water Quality Budget increased overall by 17.1% compared to the 2018 Budget. Total Revenue increased by 17.1% due to increased Assessment Revenue. The following expenses increased significantly, Legal by 100.0%, Lab Expense by 100.0%, Wages by 16.9%, Payroll Taxes by 39.6%, and Workers Compensation by 16.9%.

The 2019 Water Company Budget increased overall by 27.0% compared to the 2018 Budget. Total Revenue increased by 27.0% due to increased Assessment Revenue, and a Meter Water Usage Billed increase of 15.7%. The following expenses increased significantly, Legal by 100.0%, Electricity by 15.5%, Wages by 25.4%, Payroll Taxes by 24.1%, Health Insurance by 35.3%, Taxes – IRS, CA, CSLT by 30.9%, and Cash Replenishment by 100.0%. The following expenses decreased overall significantly, Professional Services decreased by -29.7%, Vehicle Expense decreased by -34.3%, Wages-Stand By decreased by -49.2%, Workers Compensation decreased by -19.5%, and Business Tax/License decreased by -58.7%.

The TKPOA has 302 landlocked properties, 164 properties that are non-lagoon front, and 138 properties are also non-lagoon front and are members of Tahoe Keys Boat and Harbor Association (TKB&HA). At the October 20th, 2018 Regular Board Meeting the Board of Directors approved charging these properties the same Water Quality Assessment and Channels & Lagoons Assessment as lagoon front properties, as well as Common and Water Company Assessments. Those properties that are members of the TKB&HA will receive a “Boat Slip Credit” per the 1991 Legal Agreement – Water Quality Billing.

The TKPOA Staff and Board of Directors is continually making efforts to monitor and manage costs, and evaluate the services provided to property owners and their guests to achieve the best impact for the expenditures budgeted.

The 2019 Annual Disclosure, complete detailed budgets [that include all Cove Budgets] and reserve fund reports are available from the Association’s business office located at 356 Ala Wai Blvd., South Lake Tahoe, CA 96150, Telephone (530) 542-6444.

These reports will be provided to property owners within five (5) working days of their request, at the expense of the property owner.

Questions on the 2019 Annual Disclosure, budget, reserve funds, or other information can be provided by contacting the TKPOA Office, at 356 Ala Wai Blvd., South Lake Tahoe, CA 96150, Telephone (530) 542-6444, or email at kwooldridge@ tahoekeyspoa.org, or on the TKPOA website www.tkpoa.com.

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Notice of Change in Association Rules

TEXT OF PROPOSED CHANGES The TKPOA Board of Directors approved to adopt the following changes to Association Operating Rules at the October 20th, 2018 Board of Directors Regular meeting. These changes were noticed for a 30 day member review period in the August issue of the Keys Breeze.

Purpose and Effect of Proposed Rule Change To further clarify the Rules and Regulations for Water Service TAHOE KEYS PROPERTY OWNERS ASSOCIATION RULES AND REGULATIONS FOR WATER SERVICE (Adopted October 20th, 2018)

SECTION 1 DEFINITIONS 1.1 “ACC” shall mean the Tahoe Keys Property Owners Association Architectural Control Committee.

1.2 “Board” shall mean the Board of Directors of the Tahoe Keys Property Owners Association.

1.3 “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.

1.4 “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.

1.5 “City” shall mean the City of South Lake Tahoe.

1.6 “Company” shall mean the Water Department of the Tahoe Keys Property Owners Association, also known as the “Tahoe Keys Water Company.”

1.7 “Company Manager” shall mean the Manager of the Water Department of the Tahoe Keys Property Owners Association.

1.8 “General Manager” shall mean the General Manager of the Tahoe Keys Property Owners Association, as appointed by the Board of Directors.

1.9 “Individual Assessment” shall mean a “Special Individual Assessment” as described in Article V of the CC&Rs. 1.10 “Member” shall mean a member of the Tahoe Keys Property Owners Association, as defined in Article III, Section 1 of the Bylaws.

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1.11 “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.

1.12 “Owner” shall mean the record owner of a property receiving water service.

1.13 “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.

1.14 “TKPOA” shall mean the Tahoe Keys Property Owners Association.

1.15 “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 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 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

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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 nonMembers 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.

3.4

3.5

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 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.

3.3 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 Keys Breeze

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3.6

3.7

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 thenexisting 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 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.

4.2 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

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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.

4.3 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.

4.4 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.

4.5 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.

4.6 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

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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, 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 Keys Breeze

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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 crossconnections exist.

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.

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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 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 RATES, 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.

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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, 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.

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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

* 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 Keys Breeze

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a meter calibration charge of $ 400.00 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 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

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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 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 Keys Breeze

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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.

9.12 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.

9.13 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 thirtysix (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.

9.14 Conditions for Reconnection. If Water Service is disconnected pursuant to this Section, the Water Service shall not be reconnected until any and all delinquent

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Water Service charges, disconnection and reconnection charges and all other applicable fees and costs, have been paid.

9.15 Lien on Member’s Property. Delinquent Water Service 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:

March 20 – June 30 and September 1 – November 30: 1.5 inches per week

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: Keys Breeze

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Even Numbered Street Addresses:

Monday, Wednesday, and Friday.

Odd Numbered Street Addresses:

Sunday, Tuesday, and Thursday.

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 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 a.m. and 9:00 a.m.

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.

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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 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 Keys Breeze

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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 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

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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 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 Keys Breeze

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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.

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TKPOA PREVAILS AGAIN in the “Contempt of Court Order” Case - TKM&YC vs TKPOA (SLTL-4914) “Free Launching and Retrieval for all TKPOA Property Owners Restored”

By Kirk Wooldridge, General Manager

O

n June 7th, 2018 the Tahoe Keys Property Owners Association (TKPOA) re-filed a petition with the Superior Court of California – County of El Dorado – Cameron Park, CA , Case No: SCSLT4914 asking that the Tahoe Keys Marina and Yacht Club LLC (TKM&YC) show cause why it and its agents should not be held in contempt of this Court pursuant to Section 1209 (a)(5) of the California Code of Civil Procedure for the willful defiance of the Court’s September 6th, 1991 Stipulated Judgement (Superior Court Case SLTL-4914) and the Stipulation placed on the record on August 30th, 2017 and placed in a formal Stipulation and Order entered on November 14th, 2017.

The 1991 Stipulated Judgement Section IV – 4 on Page 12 states: 4. Boat Ramp: Those TKPOA members and Tahoe Keys Beach and Harbor Association (TK&BHA) members shown as members upon the then current year membership lists provided to TKM&YC by TK&BHA and TKPOA have the nonexclusive right to launch and retrieve boats (a) owned by such member or (b) shown upon the then current year membership list as to be used by such member in such year during TKM&YC's regular business hours, without charge by or compensation to TKM&YC, using the boat ramp now or hereafter located upon the land described in Exhibit A-1 and for such purpose to use the roadways now or hereafter located upon the land described-in Exhibit A-1, the size and type of boats being so launched and retrieved being limited to the size and type of boats which TKM&YC is then permitting members of the public to launch and retrieve using the boat ramp.

TKM&YC may relocate the boat ramp and roadways but shall always, at its sole expense, maintain a boat launching ramp in good and useable condition upon the property described in Exhibit A-1 for such use by TKPOA members and TKB&HA members and use by such others as are permitted such use by TKM&YC. The Stipulation and Order entered on November 14th, 2017 states as follows: 1. TKM&YC agrees to the imposition of a $1,000 sanction. Payment of the sanction is stayed on condition of compliance with the 1991 Stipulated Judgment in case no. SC SLT 4914.

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2. The parties acknowledge validity of the 1991 Stipulated Judgment in case no. SC SLT 4914 and reaffirm their commitment and obligations to comply with the terms of that stipulation.

3. Effective upon entry of this settlement into the record of this proceeding, TKM&YC agrees to open the ramps for launching and retrieving of vessels without charge to members of the Tahoe Keys Property Owners Association in accord with the 1991 Stipulation.

4. TKM&YC agrees to refund to the members of the TKPOA who are declarants in this action the launch fees reflected by the receipts exchanged between the parties no later than September 8th, 2017 for the following named individuals: (a) Mr. Agahi; (b) Mr. McKinney; (c) Mr. Olivo; (d) Mrs. Donmoyer; (e) Mr. Acri; (í) Mr. Dotson; (g) Mrs. Roberts; (h) Mr. Slavensky; and (i) Mrs. Jolley.

The Court retains jurisdiction over the 1991 Stipulated Judgment in case no. SC SLT 4914 pursuant to Section 24 thereof, and hence this Stipulation, as well as under Code of Civil Procedure 664.6.

Shortly after the August 30th, 2017 hearing, the TKM&YC charged TKPOA members a fee called “Pollutant/Milfoil Removal Fee” for every vessel that they launched at the Marina. Based on this action by the TKM&YC, the TKPOA Board of Directors directed TKPOA Legal Counsel to go back to Court again to enforce the 1991 Stipulated Judgment and the Stipulation and Order entered on November 14th, 2017.

On October 10th, 2018, the trial was held at the Superior Court of California - County of El Dorado – Cameron Park,

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NOVEMBER 2018

CA. The TKPOA was represented again

by Attorney Art Zorio, Brownstein Hyatt Farber Schreck, LLP (“BHFS”). He delivered his opening statement as requested by the Judge, and proceeded to plead the merits of the case with 43 exhibits and eight witnesses testifying.

At the October 10th, 2018 hearing Honorable Judge Thomas Smith – Superior Court of California – County of El Dorado – Cameron Park, CA ruled the 1991 Stipulated Judgment, Section IV(4) was clear that the TKM&YC “holds the obligation to allow the [TKPOA] owners to launch and retrieve their boats at no charge.” The Court further stated that the TKM&YC charging TKPOA members for use of the boat ramp (other than for the Tahoe Only sticker provided by the TRPA) was a violation of the Court’s orders and the TKM&YC is in contempt.

The TKM&YC is required to open the ramps for launching and retrieving of vessels without charge to the members of the TKPOA in accord with the 1991 Stipulated Judgement.

The Judge also ruled the TKPOA can file and be awarded Legal Fees for the Contempt of Court Case filed against the TKM&YC. The full certified transcript TKPOA vs Horton and the TKM&YC (SC-SLT4914) from October 10th, 2018 can be reviewed on the TKPOA website at www.tkpoa. com following this link: under “Litigation” https://www.tkpoa.com/documents/ category/86-litigation.

The TKM&YC was represented on October 10th, 2018 by Attorney Thomas M. Papez - Thomas Papez Law Offices, Robert Spinnato – General Manager TKM&YC, and Kim Plencer – President – Royce Realty & Management Inc. Attorney Thomas Papez, provided the court with three exhibits and two witnesses.

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