SanDiegoCityNews.com  Real Estate--click this title in the side column. High School CIF Swim Championship Finals were held at Rancho Bernardo High School for Division 2   David Kreitzer Lake Hodges Bicycle/Pedestrian Bridge Dedication of this new bridge for The Longest Stress Ribbon Bridge in the World Located between south Escondido and north Rancho Bernardo--near The Rancho Bernardo Community Park    Rancho Bernardo Transit Center has recently opened along Highway 15 inland ~  north to Escondido and south to downtown San Diego   The Fifth Annual 4S Ranch Street Fair   4S Ranch is a large relatively new development of homes and businesses with two new elementary schools and a middle school within the award-winning Poway School District.   Del Norte High School in 4S Ranch near the corner of Camino Del Norte and 4S Ranch Parkway at Deer Ridge Road is scheduled to open in Fall 2009 as part of the Poway School District.    Rancho Bernardo Community Park  ~~  flag remembrance of the October 2007 fires which destroyed over 1,000 homes represented by a flag for each home.   Annual 4th of July parade in Rancho Bernardo--   Bonnie Dumanis, San Diego County District Attorney Running for re-election in the year 2010.   Rancho Bernardo High School Marching Band         Mayor Jerry Sanders held a 2009 budget Town Hall meeting at the Scripps Ranch Libaray.   Also attending was the San Diego Chief of Police. [on the right side of the photo]   The monthly meeting of the Rancho Bernardo Planning Board was held with the guest speaker Bill Anderson, Deputy Chief Operating Officer for Land Use and Economic Development for the City of San Diego.   Mr. Anderson has worked to reorganize his department during the last year and a half.  The focus is now on implementation for results to be achieved.  Important to the city is the the review of the General Plan and the 44 different Community Plans.  High technology is a growing part of the economy of the city of San Diego. At the RB Planning Board meetings, speakers from the offices of government elected officials give updates.   . Spotlight on:  Rancho Bernardo Located in the city of San Diego, California, Rancho Bernardo is a  Master-Planned Community   MEMORIAL DAY  Webb Park, RB  Rear Admiral Richard K. Fontaine, USN Retired Master of Ceremonies Major General Michael R. Lehnert, USMC, Principal Speaker Commanding General, Marine Corps Installations West        Rancho Bernardo began in the 1960s as a development of homes and businesses structured from the start for the entire region of Rancho Bernardo.  Sections were set aside for the home developments as well as for shopping centers and business and industrial areas.    Each home development has a Homeowners Association [HOA] and these associations have governing documents such as Bylaws, CC&Rs [Covenants, Conditions, & Restrictions], and Rules and Regulations.    It is vital that homeowners who are owners and prospective purchasers for property in an HOA read these governing documents to understand their rights and responsibilities.    Bylaws can be updated by the required vote of the current homeowners according to rules in the Bylaws.  A current topic of interest among HOAs is voting requirements, specifically "cumulative voting" AND "Reserve funding requirements."    An excellent Internet web site which is MUST READING for homeowners and purchasers contemplating buying property in any HOA in California is contained on the Internet web site: [an excellent source for a variety of legal topics concerning HOAs] www.davis-stirling.com which is the web site owned by Adams & Kessler LLP, Adrian Adams, Attorney at Law, Los Angeles, CA.       From Adams & Kessler LLP web site on the topic "CUMULATIVE VOTING"--          REMOVING CUMULATIVE VOTING.  Cumulative voting increases the cost and uncertainty of elections and increases the potential for error and legal challenges.  To address this problem, associations should adopt conventional voting systems, i.e., casting no more than one vote for each candidate--the same election process used in city, state, and national elections.         This forces candidates to seek a broader base of support thereby increasing the likelihood that more moderate, business-like candidates, rather than disruptive, fringe candidates, will be elected.  To implement a conventional voting process, associations must amend their governing documents to delete cumulative voting. NEW HOA RESERVE FUNDING  $$$  DISCLOSURES QUESTION: Is there a required amount that must be set aside each year for reserves? Our treasurer wants to have 100%. Most of the members feel this is not necessary and prefer a special assessment when the time came, if we do not have enough reserves. Is there a suggested amount or percentage required at this time? ANSWER. Your treasurer's concern is understandable. Many associations have alarmingly low reserves, which prompted the legislature this year to again increase reserve disclosures and funding plans to avoid "budget busting" special assessments. New Disclosures. It appears the legislature wants 100% reserve funding and amended the Davis-Stirling Act so that boards are now required to make the following additional disclosures: Deficiencies. Disclose any deficiencies in the reserves expressed on a per unit basis. Civ.Code 1365(a)(2)(D) Deferrals. Disclose whether the board plans to defer repairs or replacement of any major component, including a justification for the deferral. Civ.Code 1365(a)(3)(A) Loans. Disclose whether the association has any outstanding loans with an original term of more than one year, including the payee, interest rate, amount outstanding, annual payment, and when the loan is scheduled to be retired. Civ.Code 1365(a)(3)(D) Funding Plan. Prepare and distribute a funding plan that indicates how the board plans to fund the annual contribution to meet the association's obligation for the repair and replacement of all major components. The reserve funding plan must be adopted in an open meeting. Civ.Code 1365.5(e)(5) Beginning January 1, 2009, boards must distribute their reserve funding plan to all members along with the association's annual operating budget, not less than 30 nor more than 90 days before the start of the association's fiscal year. Civ.Code 1365(b) Assessments. If the board determines an assessment increase is required to fund the reserves, the assessment must be adopted in an open meeting and separately from the adoption of the funding plan. Civ.Code 1365.5(e)(5) Form of Disclosures. Prepare and distribute specific reserve funding disclosures that comply with Civ.Code 1365.2.5 The form has changed significantly and boards must comply with the new format. RECOMMENDATION. Boards should not attempt to create their own reserve studies nor should they assign the task to the association's management company. Because of the rising potential liability from improperly funded reserves and inadequate notices, boards should use professional reserve companies for their studies. There are many such companies to choose from and boards should build the cost into their annual budget.     Photo Essay of RB Inn Photo above was the setting filmed as part of a scene in the 2001 film "Traffic" staring Michael Douglas and Catherine Zeta-Jones The neighborhoods of homes in RB   Featuring Bernardo Heights Homes near Bernardo Heights Country Club   Send comments [signed or unsigned] about the web site articles to: Jean Potosky, Editor-Publisher SanDiegoCityNews.com P.O. Box 504033 San Diego, CA  92150       Photos ©2004 - 2009 Jean Potosky  Web site and web domain name ©2004 - 2009 Jean Potosky, All Rights Reserved