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Business Operations - Section 2000
Table of Contents
Investment Policy
Budget
Water Trust Agreement
Assessment Policy and Procedure
Unnumbered Policy Statements
Investment Policy
Purpose of Investment Policy
The purpose of this statement is: to state in a written document the
Board members' attitudes, expectations, objectives, and guidelines
in the investment of the Associations assets; to establish
formalized criteria to monitor, evaluate, and compare performance
results on a regular basis; to comply with all fiduciary, prudent,
and due diligence requirements that reasonable people would utilize;
to encourage effective communications between Board members and the
investment advisor; to establish a clear understanding between
decision makers for the fund and any investment advisors employed to
assist or manage fund assets; and to provide guidance and
limitations in the investment of fund assets. In addition this
statement provides the Board with an opportunity to articulate and
formulate individual and consensus sentiments regarding the
management of the Associations' funds and provide continuity among
decision makers and a reference for future considerations. Finally
it provides a context for the quality as well as the quantity of
investments results to be monitored.
Statement of Responsibilities
It shall be the responsibility of the Board to develop sound and
consistent investment policy guideline which will be used in
formulating corresponding qualified investment advice and to
authorize expenditures, prepare a budget, and oversee the
appropriate investment of the Association's funds. The Board also
shall be responsible for considering acceptable investment
alternatives, establishing investment goals, and defining the
investment time horizon and the expectations for the fund's
performance. The investment policy objectives, goals, and guidelines
that follow represent the current consensus of the Board members'
philosophy regarding the investment of the assets. Furthermore, it
is the responsibility of the Board to review and possibly revise
from time to time the investment policy statement to reflect the
members' attitudes, expectations, and objectives.
Fund Description
The Oak Shores Community Association investment account will be
funded by annual dues and special assessments by the Board and a
vote of the community members. The purpose of this investment
account is to provide funds for maintenance, upkeep, renovations,
etc. of the Association.s roads, public facilities, and common
areas.
Investment Guidelines
The portfolio is to be managed as a short - to - intermediate term
fixed income account. High levels of risk are to be avoided. The
fund shall primarily invest in cash equivalents and short-term bonds
or bond funds, with maximum maturities not to exceed five (5) to
seven (7) years and invest in high quality securities with an S&P or
Moody"s rating no less than AA or Aa respectively or securities
deemed to be equivalent rating by the Board and its financial
advisor. With the exception of US Treasuries and insured money
market funds, no issue shall comprise more than ten percent (10%/ of
the investment portfolio. Money market funds may for short period of
time (not to exceed thirty [30] days) exceed the one hundred
thousand ($100,000) dollar FDIC limit, pending prudent investments.
Investment Performance Review & Evaluation
The investment advisor shall provide the Board with confirmations of
all securities and brokerage transactions and securities positions
held in the account for the Association. Investment performance
shall be reviewed and evaluated not less than once a calendar year,
with the date and time to be determined by the Board.
Adopted: 03-18-89
Revised: 04-20-96
Formerly known as Appendix U
Budget
The Association budget shall be prepared annually from the best
possible estimates provided by the Association administrative staff.
The Manager shall determine the manner in which the budget is
prepared and shall establish a schedule for the budget adoption
process in accordance with time requirements. Budget preparation
shall reflect policies that are compatible with the long range goal
of the Association.
The budget shall show a complete plan and itemized statement of all
proposed expenditures and estimated revenues for the ensuing fiscal
year, together with a comparison of revenues and expenditures for
the existing fiscal year.
Public Hearing and Availability of Proposed Budget
Tentative budget approval shall be Oct. 15
The proposed budget, showing expenditures, cash balances and all
revenues, shall be made available for public inspection at least
three (3) days before the public hearing date.
The Board shall hold a public hearing on the Proposed budget on or
before third Saturday of October for the purpose of permitting any
Association member to appear and speak to the budget or any item on
the budget.
The public hearing on the budget will conclude when there are no
requests for further hearing on file. The final adoption of the
budget shall not take place until the hearing is concluded.
Adoption of the Budget
On or before Nov. 1, the Board shall adopt the final budget,
including any tax requirements.
Adopted: 09-17-94
Presentation and Review of Budget
The Oak Shores Community Association budget document developed under
the guidance of the Manager and the Treasurer for each new fiscal
year will be presented to the Board at the October Board of
Directors meeting preceding the fiscal year. The budget will
reviewed at the following May meeting.
The purpose of this midyear review is to allow the community to
assess the Board's performance in establishing and controlling the
budget.
Adopted: 10-19-96
Water Trust Agreement
Whereas, it is known by certain parties that a trust agreement
exists that defines the reason for the establishment of the
Nacimiento Water Company and it's responsibility to provide a water
system to serve the Oak Shores Community Association.
Whereas, the trust agreement was executed in good faith by General
Resources Development Company (Trustor) for the benefit of the Oak
Shores Community Association (Trustee) to assure a continued water
supply.
Whereas, the Board of Directors of the Oak Shores Community
Association felt that the trust agreement is valid. however, there
may be a time in the future where the issue will have to be
addressed.
Adopted 3-20-93
Formerly known as Appendix V
Assessment Policy and
Procedure
Whereas, Oak Shores Community Association C.C. & R.'s, Article V
establishes the obligation, purpose, method, and basic procedure for
assessing each owner of a lot or living unit within Oak Shores; and
Whereas, Oak Shores Community Association C.C. & R.'s Article VI
defines the means available to Oak Shores Community Association for
collecting nonpayment of such assessments; and
Whereas, the California Civil Code, Section 1730, as adopted in
1983, now requires that homeowner association Board of Directors
shall prepare and distribute to all members a written statement as
to an association's policies and practices in enforcing the lien
rights or other legal remedies for the default in the payment of its
assessments against its members within 60 days prior to the
beginning of the next fiscal year; therefore,
Resolved that, the following policy and procedure is hereby adopted
by the Oak Shores Community Association, Inc.:
Written notice of the amount of an assessment, regular or special,
shall be sent to every owner of record not less than 30 days prior
to the due date for payment of same. The due date shall be set forth
in said notice.
Assessments not paid within 30 days after the due date shall be
delinquent, shall bear the legal allowable interest from the due
date, and shall bear a late charge penalty.
Assessments not paid within 60 days after the due date shall be
subject to an action at law against the member who is personally
obligated to pay the same. This may involve the filing of a lien
against the property and subsequent foreclosure sale, in accordance
with the provisions of the California Civil Code, Sections
2924,2924(b), 2924(c). Legal action may also be taken against the
delinquent member in the Small Claims and Municipal Court system.
Lien filing charges, attorney fees, and all other costs related to
the collection of the delinquent assessment shall be added to the
interest and late charges.
Membership privileges in Oak Shores Community Association, such as
voting rights, rental permits, and use of Oak Shores Community
Association facilities (campground, marina, clubhouse, etc.) shall
be suspended until delinquent assessments, interest, late charges,
and costs are paid.
Upon payment of all delinquent assessments and related charges and
costs. Oak Shores Community Association shall release outstanding
liens, foreclosures, and other legal actions, and restore full
membership privileges to the property owner.
Adopted: 02-15-86
Annual assessments are due and payable January 1st, delinquent
February 1st with a 10% penalty assessed. March 1st each delinquent
account will be handed to the Oak Shores Community Association
attorney for collection with attorney fee, 10% and lien filing and
releasing fees to be assessed.
Adopted: 02-15-86
Unnumbered Policy Statements
04-19-75 Delinquent dues to be followed by filing liens. Foreclosure
proceedings to begin within 90 days after filing lien. (Only on the
advice of attorney.)
08-28-76 Oak Shores VFD to show assets, for auditing purposes, in
Oak Shores Community Association's books; Oak Shores Community
Association's name to show on bank accounts, insurance, etc.
RESCINDED 1/17/98
09-11-77 Realtors are allowed to meet prospective clients or guests
at Reception Center (gate) to show property within Oak Shores.
08-20-78 Contractors not to be issued gate passes.
04-20-80 All important Oak Shores Community Association documents
such as all legal/historical papers or computer records to be stored
in a safe, fire proof deposit box.
05-18-80 Fine system approved; to be posted and distributed at gate.
11-23-80 Unpaid fines to be included in annual assessment statement.
If unpaid, one gate card may be be recorded [issued] and/or lien may
be placed on property.
02-15-81 Treasurer and Manager to manage CD's and other accounts.
Problems are to be submitted in writing to Board for consideration.
08-16-81 Real estate agents' agreement form to be filed at gate.
02-21-82 All delinquent accounts to be charged legal interest.
03-21-82 Manager authorized to sign checks up to $1000.
08-21-83 All materials purchased with General Fund money, which
belongs to all Oak Shores Community Association members, to be used
on Common areas only, as designated by Oak Shores Community
Association management. DELETED 1/17/98
11-20-83 Funds raised by Recreation Committee to be deposited in
Recreation Reserves with earned interest at end of year.
09-18-83 Oak Shores Community Association to be responsible for
painting fire hydrant.
03-18-84 Two Oak Shores Community Association slips reserved: One
(1) for Fire Department and One (1) for Oak Shores Community
Association Maintenance pontoon boat. Violators to be fined $50.00.
04-15-84 No money to be transferred from reserve funds without Board
approval; approval can't be granted until after actual expenditures
are posted.
01-21-89 Capital depreciation standard adopted.
03-16-91 The books of accounts available to the membership to be:
the General Ledger in it's entirety, the Cash Receipts, Journal
Summary Sheet and Accounts Payable Journal Summary Sheet.
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