Keys Breeze July 2020

2020 BOARD OF DIRECTORS ANNUAL ELECTION “CANDIDATES NIGHT” PG. 12 MEMBERSHIP VOTE FOR EAST CHANNEL EAST BULKHEAD REPLACEMENT PROJECT PG. 16

2021 BUDGET PROCESS PG. 28

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

JULY 2020

Tahoe Key s P r oper ty Owner s Ass oc iation

Tahoe Keys Specialists 2019 #1 in Sales for Tahoe Keys

Working Together for You. ADELE LUCAS

CHRIS HERNANDEZ

BROOKE HERNANDEZ

530.545.0888 | 866.541.2200

530.318.6946 | 775.588.6130

530.314.9766 | 775.588.6130

AdeleLucas.com NV# 0029180 CA# 00838770

RealTahoeEstates.com NV# 145419 CA# 01477359

RealTahoeEstates.com NV# S.0071297 CA# 01477800

Move Safe Certified Our team is using the best tools, technology, and practices to help keep clients safe during COVID-19.

Here Are Your Tahoe Keys 2nd Quarter Statistics:

SINGLE FAMILY SOLDS: AVG. SOLD PRICE: SOLD DOM: % OF ASKING PRICE: ACTIVE (CURRENTLY): MEDIAN LIST PRICE: AVG DOM:

2ND QTR

20

TOWNHOUSES

9 $1,025,000 ($438/sq. ft.)

164 94.5% 15 $1,199,000 ($559/sq. ft.)

SOLDS: AVG. SOLD PRICE: SOLD DOM: % OF ASKING PRICE: ACTIVE (CURRENTLY): MEDIAN LIST PRICE:

100

6 $441,333 ($348/sq. ft.)

70 95% 6 $546,800 ($610/sq. ft.)

90

AVG DOM:

SOLD

2ND QTR 20

SOLD

SOLD

PROPERTIES THAT WE’VE RECENTLY SOLD: 2042 Aloha | $940,000

PENDING

2155 Catalina

439 Ala Wai #161 | $210,000

PENDING

PENDING

544 Tahoe Keys Blvd

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PENDING

218 Beach Dr

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JULY 2020

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2020 Aloha | $1,015,000

2

555 Tahoe Keys Blvd #3

Low inventory and high demand...

It’s time to list!

A FEW OF OUR CURRENT LISTINGS CONTACT US FOR PRICING

On a deep and wide channel with a boat dock, mature landscaping and natural light. Four bedrooms, two living rooms and a two-car-garage.

Rare lakefront work of art with handcrafted furniture and stairway, sandy beach and boat dock.

Unique buildable Tahoe Keys lot fronting Lake Tallac.

Outstanding four bedroom, three bath home backing to Wildlife Sanctuary with a boat slip at the Beach & Harbor Association.

Make us your choice.

president’s letter IT’S TAHOE, DON’T LIKE THE WEATHER, WAIT AN HOUR AND IT WILL CHANGE President’s Letter

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Signs of Cold Water Immersion

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2020 Board Actions Summary

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ACC Rule of the Month

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Where in the Universe

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TKPOA Calendar

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Town Hall Forum

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Notice of Annual Meeting

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Annual Director Election Rules

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Membership Vote for East Channel East Bulkhead Replacement Project 16 Public Safety Power Shutoff

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Davis Stirling Civil Code § 4041

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TKPOA “Contempt of Court Order" Case 24 Candidate’s Night in the Tahoe Keys 24 Accounting Report

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2021 Budget Process

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Electronic Communications

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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 Keys 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 at (775) 846-5656, kathy@justimaginemktg.com.

COVER PHOTO: Jim Brooks Printed on recycled paper with soy-based inks.

AS I SIT WRITING THIS ARTICLE for the Keys

Breeze magazine, I reminisce back many years ago when I first laid eyes on the Tahoe Keys. Like today, an afternoon thunder storm shook the earth and lighting danced IF YOU DON’T LIKE THE across the skis. “Wait an hour and the weather will change,” said our enthusiastic COVID-19 REGULATIONS, real estate agent. Looking at the dark gray JUST WAIT A DAY AND waterways, I was skeptical but sure enough, the storm cleared, the sun came out, THEY WILL CERTAINLY and believe it or not, the water appeared CHANGE. a beautiful blue. We were so enthralled with the beauty of the Tahoe Keys, we immediately bought a home, one that was to become our full-time residence. For those who personally know me, this was before I developed an allergy to that white stuff you all call snow. But that’s a topic for another day.

How ironic the same saying relating to weather, could hold true through many of life’s challenges. If you don’t like the COVID-19 regulations, just wait a day and they will certainly change. Don’t like the local city rules CONTINUED ON PAGE 22 The Keys Breeze Magazine IS THE OFFICIAL PUBLICATION OF THE TAHOE KEYS PROPERTY OWNERS ASSOCIATION

ADMINISTRATIVE OFFICE HOURS

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

Kirk J. Wooldridge

General Manager, Ext. 224

Heather Blumenthal

Operations Manager, Ext. 228

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Administrative Assistant, Ext. 223

Don Havard

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

TAHOE KEYS PROPERTY OWNERS ASSOCIATION

Vacant

Daniel Larson

Water Company and Water Quality Manager (530) 542-6451

Accounting Manager, Ext. 227

Front Desk Attendant Dial 0

Linda Callahan

2019–2020 BOARD OF DIRECTORS

Architectural Control Dept.

Manager, Ext. 239

Joe Sherry, PRESIDENT

Tom Callahan

Jim Siegfried, TREASURER

Facilities Manager, Ext. 226

James Brooks

Robert Meyers, VICE PRESIDENT Sean Ward, SECRETARY

Project Coordinator/ Property Manager, Ext. 241

Steven Shepherd, DIRECTOR

Bill Spicer

Melvin Meyers, DIRECTOR

Pool Supervisor (530) 545-4124

Security (530) 545-0847

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Michael Keller, DIRECTOR

BE WATER SMART THIS SUMMER

SAFETY TIPS: • • •

Hypothermia is a risk in Tahoe’s snow-melt waters.

Slowly adjust to the cooler water by taking your time to get in.

Distance perception is distorted on the water.

Do not try to swim from boat to shore without floatation devices.

UV radiation exposure increases 4%-5% every 1,000 feet above sea level.

Apply and reapply sunscreen every 2 hours.

bartonhealth.org

LEVEL III

Trauma Center 530.541.3420

Lake Tahoe’s Only Level III Trauma Center

775.589.8900 bartonhealth.org/urgentcare

SUMMER IS HERE, and locals

Signs of Cold Water Immersion

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and visitors alike are ready to get out and enjoy Lake Tahoe. Before taking a plunge, there are important precautions to keep in mind with water surface temperatures and cold water immersion.

Lake Tahoe’s temperatures are on the colder side at the beginning of the summer, ranging between 50–60 degrees Fahrenheit.

Although these temperatures will continue to rise to 65–75 degrees as the days get hotter and summer carries on, keep in mind that symptoms of cold water immersion can occur at water temperatures as warm as 77 degrees. There are four stages to cold water immersion, how to address them, and when to seek medical attention:

STAGE 1: Initial Cold Shock

Sudden immersion into cold water can cause immediate, involuntary gasping for air, panic, and vertigo as well as create changes in your body's blood pressure and heart rate. The sensation of taking your breath away can result in panic and inhalation of water and drowning. If you do fall in or enter the cold water, attempt to get control of breathing and try not to panic. Focus on floating with your head above water, until the initial cold shock phase passes. If it doesn’t pass, it’s time to get out of the water.

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STAGE 2: Short-term Swim Failure

Swim failure occurs anywhere from 3–30 minutes following the initial cold water shock. In this phase, the muscles and nerves in the legs and arms will begin to cool quickly, causing strength and movement to drop significantly. Even if they’re in good physical condition, this stage of cold water immersion can render a person unable to pull themselves out of the water or keep their head above the water. It’s recommended to not swim alone in Lake Tahoe, and if you or someone you’re with experiences short-term swim failure, place your body in a floating position if possible and get to shore or aboard a watercraft quickly to begin the rewarming measures.

STAGE 3: Long-term Immersion Hypothermia

Hypothermia sets in after 30 minutes of cold water exposure, depending on the water temperature; as cold water causes the body to lose heat 25 times faster than cold air. Hypothermia is a cooling of the body’s core temperature caused by active heat loss and the failure of the body to produce more heat. Recognize signs of hypothermia to help identify its early onset: shivering slurred speech; cold and bluish lips, skin and fingernails; loss of feeling in extremities; confusion; dizziness and rigidity in extremities. If hypothermia is suspected, take action by starting rewarming measures and seek medical attention by calling 911 or going to the closest medical facility.

STAGE 4: Post Immersion Collapse

It’s important to note that post immersion collapse can occur at any point. Your body is still in danger while being rescued from cold water or after. Cardiac arrest after cold water immersion occurs due to the collapse of the arterial blood pressure. Along with hypothermia, possible water in the lungs due to inhalation, or coagulation issues due to cold and thickened blood.

To have a fun, safe time on the water, practice simple “dos” and “don’ts” such as making sure to wear a personal flotation device at all times.

If you’re operating a boat, ensure there are life jackets for every passenger aboard. Avoid jumping off large rocks into deep water, as this runs the risk of increased cold water immersion and trauma, based on the height of your jump.

If you or someone you’re with is experiencing symptoms of cold water immersion or hypothermia and rewarming measures can’t be met as soon as possible, it is vital to seek medical attention or call 911. Barton Health’s emergency department is safe, accessible, and available around the clock for Lake Tahoe’s residents and visitors alike.

Kristi Kimball, RN, BSN, is the Trauma Program Manager at Barton Health. Barton’s Level III Trauma Center provides medical services for trauma care and the immediate availability of emergency medicine physicians, surgeons, nurses, lab and x-ray technicians, and life support equipment 24-hours a day.

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2020

BOARD ACTIONS SUMMARY

By Heather Blumenthal, Operations Manager

JUNE 20TH – EXECUTIVE SESSION BOARD ACTIONS • Reviewed nine personnel matters.

• Reviewed two member disciplinary matters, including an ACC Appeal Hearing.

• Reviewed four legal matters, including ongoing issues with the Tahoe Keys Marina.

• Scheduled an Emergency Executive Session Meeting for Monday, June 22nd, 2020 to address the Board Recall Petition Scheduling and items not addressed during the June 20th Executive Session.

JUNE 20TH – BOARD OF DIRECTORS MEETING BOARD ACTIONS • Approved the March 2020 and April 2020 Financial Statements.

• Appointed Bob Cliff, Jim Siegfried, Sean Ward, Bryan Welsh, and Joe Sherry to the 2021 Budget Subcommittee.

• Approved a member event reservation request.

• Approved Mountain View Lawn and Garden for the Islanders 2 Bulkhead Repair Project for $12,000 plus a $1,200 contingency for a total of $13,200 to be funded from Islanders 2 Reserves.

• Approved the replacement of the East Garmish Ramp Dock for the Water Quality Department for $3,300 to be funded from Water Quality Operating Budget account number 59300.

• Appointed Tania Green – Notary Public as Inspector of Elections for the East Channel East Bulkhead Replacement Project Vote.

• Approved Shoreline General Engineering for the Cove 3B Dock Project for $10,000 plus a $1,000 contingency for a total of $11,000 to be funded from the Cove 3B Reserve Fund.

• Approved the purchase of Water Quality and Security Department Radios for $5,419.83 to be funded from Water Quality Reserve Funds.

• Approve the electronic payments and transfers for June 2020 as presented.

• Approved the TKPOA Vision Ad Hoc Subcommittee Charter as presented.

• Appointed Bryan Welsh, Julie Manrao, James Ritchy, Stu Roberson, Nate Summer, Steve Jacobs, Bob Cliff, and Denise Belisle to the VHR Program Ad Hoc Committee.

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By Linda Callahan, Architectural Control Department Manager

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

B) Townhouses may have one sign located over the garage or in the window except properties with water frontage, which may have an additional sign in the window of the water front side. Signs shall not exceed 216 square inches or 12" x 18".

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

D) Temporary “Open House” signs are permitted between 10:00 a.m. and 6:00 p.m. daily. Permanent “Open House” signs are not permitted.

E) No signs of any kind are permitted on the medians of Tahoe Keys Blvd., Ala Wai Blvd., or 15th Street.

F) One political sign, no larger than 216 square inches in size, can be placed on an individual’s property, thirty (30) days prior to an election date and must be removed the day after the election date.

read the signs!

K eKyes y sB rBe reezee z e

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J UJ LUYL Y2 022002 0

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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 at the end of the year and given a $25 gift certificate to Chicken in a Barrel. 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 Blumenthal at HBlumenthal@ tahoekeyspoa.org.

Thank you!

Michael Keller in Kailua.

Get more exposure for your business!

Advertise in Keys Breeze!

For more information about rates please call Kathy Hess-Slocum at 775-846-5656 or email kathy@justimaginemktg.com.

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Looking to buy or sell in the Tahoe Keys?

Contact Michael Keller for proven results • 2019 South Tahoe MLS Top Independent Michael Keller Individual Broker in Sales Volume BROKER/OWNER • Full service independent broker Keller Properties • Creative marketing & competitive rates 530-307-0027 • TKPOA homeowner/full time resident Michael@TahoeKeysRealty.com • 2020 TKPOA Board Director CA Broker# 01374418

FOR MORE INFO JULY 2020

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www.TahoeKeysRealty.com

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TKPOA CALENDAR FOR JULY 2020 AND BEYOND July 2020

9 Town Hall Forum – Proposed

ACC Rules 6:00 p.m.

14 ACC Meeting 9:00 a.m.

18 Board of Directors Exec. Session 8:00 a.m.

18 Board of Directors Regular Mtg. 2:00 p.m.

21 Finance Committee Meeting 10:00 a.m.

23 Town Hall Forum – Meet the

Board Candidates 5:00 p.m.

28 ACC Meeting 9:00 a.m.

Water Quality Committee TBD

Tahoe Keys Blvd Median Subcommittee TBD

Bylaws and CC&Rs Communication Subcommittee TBD

Vacation Rental Program Ad hoc Subcommittee TBD

August 2020

11 ACC Meeting 9:00 a.m.

15 Board of Directors Exec. Session 8:00 a.m.

15 Board of Directors Regular Mtg. 2:00 p.m.

25 ACC Meeting 9:00 a.m.

Town Hall Forum TBD

Water Quality Committee TBD

Tahoe Keys Blvd Median Subcommittee TBD

Bylaws and CC&Rs Communication Subcommittee TBD

Vacation Rental Program Ad hoc Subcommittee TBD

NOTE: All meetings will be held at the TKPOA Pavilion, 356 Ala Wai Blvd, South Lake Tahoe unless otherwise noted.

Until further notice, meetings will have limited in-person attendance. Members may also attend meetings via Conference Call and/or Webinar. Please contact the TKPOA front desk at (530) 542-6444 for details on member attendance.

CALL FOR A FREE ESTIMATE!

2020 ARCHITECTURAL CONTROL COMMITTEE MEETING SCHEDULE JANUARY 14

FEBRUARY 11

MARCH 10

APRIL 14 & 28

MAY 12 & 26

JUNE 16 & 30

JULY 14 & 28

AUGUST 11 & 25

SEPTEMBER 15 & 29

OCTOBER 13

NOVEMBER 10

DECEMBER 8

Tanner Hart

IMPORTANT! ACC Meetings have been moved from Mondays to Tuesdays for 2020.

boatdocksinc@gmail.com

All meetings are held at the Pavilion and begin at 9:00 a.m. unless otherwise posted. ACC application submittals are due by 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.

LIC #369533

General Engineering PO Box 8233 South Lake Tahoe

INC

BOAT DOCKS

530-541-1111 BOATDOCKSINC.COM • CUSTOM DESIGNS • FLOATING DOCKS • FIXED DOCKS • SUPPLIES • • RETAINING WALLS • RAMPS • DECKS • PILINGS • REPAIRS • BUOYS • • MAINTENANCE • SALVAGE • RELOCATION • POLYURETHANE FLOATS •

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TOWN◊HALL◊FORUM Pavilion

July 23rd, 2020 Thursday 5PM-9PM

2020 Board of Directors Annual Election “Candidates Night” Open Forum with Representatives from the TKPOA Board of Directors, and Self Nominated Board Candidates for the 2020 Board of Directors Annual Election Come join us and share your opinions and insight Visit www.tkpoa.com for more information

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Chico Incline Village/Crystal Bay Reno Sacramento South Lake Tahoe Truckee Zephyr Cove

2020 ACC APPLICATION

CONSTRUCTION LAW | BUSINESS LAW ESTATE PLANNING | REAL ESTATE LAW | FAMILY LAW

SUBMITTAL SCHEDULE Custom Boat Docks ACC MEETING DATES HAVE BEEN CHANGED FROM MONDAYS TO TUESDAYS FOR 2020

SUBMITTAL DEADLINE (Wednesday prior to the meeting)

ACC MEETING DATES (Tuesdays)

July 8th

July 14th

July 22nd

July 28th

August 8th

August 11th

August 19th

August 25th

September 9th

September 15th

September 23rd

September 29th

October 7th

October 13th

November 4th

November 10th

December 2nd

December 8th Keys Breeze

Shoreline General Engineering Inc. Docks Ramps Pile Driving Platforms

Piers Fencing Welding Custom Railings

530.545.3188

CA LIC # 692692

www.docksndeckslaketahoe.com |

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

NOTICE OF ANNUAL MEETING In accordance with the Bylaws and the adopted Election and Voting Rules of the Tahoe Keys Property Owners Association, the 57th Annual Membership Meeting will be held on

Sunday September 6th, 2020 at 9:00 a.m.

TKPOA Pavilion located at 356 Ala Wai Boulevard, South Lake Tahoe Given the Association’s history of not reaching quorum for the initial annual meeting attempt, and the likelihood that this year will not be any different, be advised that the adjourned annual meeting date will be set for

Saturday September 12th, 2020 at 9:00 a.m.

The purpose of the meeting is to hear reports on the state of the Association and to introduce the newly elected Association Directors for the 2020–2022 terms.

The meeting will be convened promptly at the time noticed above.

We hope all members will attend the meeting.

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Annual Director Election Rules

By Kirk Wooldridge, General Manager THE TAHOE KEYS PROPERTY OWNERS ASSOCIATION (TKPOA)

Board of Directors adopted the “Election Rules, Voting Procedures and Director Qualifications,” at the scheduled June 12th, 2020 Open Board Meeting.

The Board of Directors, Legal Counsel, and TKPOA staff where tasked with revising these Elections rules based on the recently approved Senate Bill (SB) 323 as of January 1st, 2020.

The revised “Election Rules, Voting Procedures and Director Qualifications” were published in the May 2020 Keys Breeze for the required 28 Day Member Review.

These adopted Election Rules will bring our Association into compliance with this new legislation. The Senate Bill 323 amends the Davis Stirling Civil Code Sections §5100, §5105, §5110, §5115, §5125, §5145, and §5200, and adds §5910.1 relating to elections, voting and candidate qualifications. Due to the size of the adopted Election Rules revision, the TKPOA has placed this on the TKPOA website for your reference at www.tkpoa. com Documents>> CC&R and Policies>> Polices and Rules.

For the 2020–2022 Board of Directors Election, there are four board positions up for election. For this election we have 16 candidates that will be placed on the voting ballot: Kelci Binau, Albert Chandler, Pat Disney, John Keys Breeze

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Eshelman, Bonnie Halleran, Michael Keller, Keiron McCammon, Robert Meyers, Dave Peterson, Stuart Roberson, Kelly Shanahan, Steve Shepherd, Rich Walton, Bryan Welsh, Ken Williams, and Peter Wolcott.

At the April 18th, 2020 Board of Directors Regular Open meeting the Board appointed Tania Green – California Notary Public to serve as the Inspector of Elections for this Director Annual Election, mailed ballot will be addressed to the Inspector of Elections, TKPOA Board of Directors Annual Election 1034 Emerald Bay Road, South Lake Tahoe, CA 96150. The Board also approved a motion to set the Record date for the TKPOA Property Owner Voting List for “2020–2022 Annual Board of Directors Election” as July 6th, 2020.

Currently the TKPOA is still seeking TKPOA volunteers to assist the Inspector of Elections for this ballot count that is currently scheduled on September 12th, 2020.

If you have any additional questions please contact the TKPOA Pavilion Office at info@tahoekeyspoa. org or (530) 542-6444. For any additional questions on the 57th Annual Membership Meeting or Director Election, contact Heather Blumenthal, Operations Manager, at (530) 542-6444, ext. 228 or hblumenthal@ tahoekeyspoa.org.

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MEMBERSHIP VOTE FOR EAST CHANNEL EAST BULKHEAD REPLACEMENT PROJECT

ON JUNE 26TH, 2020, the Tahoe Keys Property Owners Association (TKPOA) has sent out a

voting ballot to all members to vote FOR or AGAINST the East Channel East Bulkhead replacement project. The Board of Directors now requests member approval of authority to enter into a construction contract for the project. Member approval is needed because our Bylaws prohibit the Board from entering into a contract in excess of $250,000 without approval of a majority of a quorum of the association membership by vote or written assent [TKPOA Bylaws Article IX, Section 2, subsection (a)]. The Board of is unanimous asking the TKPOA members approve that authority.

We are at the construction phase of the East Channel East Bulkhead replacement project. Project completion requires the TKPOA hire a primary construction contractor for the build stage. The TKPOA solicited bids from 32 contractors and received six valid bids; the low was $1,476,644 and the high $2,396,000.

As a member you can vote FOR or AGAINST a resolution authorizing the Board of Directors to execute a contract costing in excess of $250,000. Specifically, the Board asks for authority to enter into a primary construction contract in an amount not to exceed $1,476,644 plus spending authority of up to an additional 10% for contingencies. You are strongly urged to VOTE. Passage of the proposed resolution authorizing contract authority requires the “For� vote of a majority of voting members so long as a quorum (509) valid ballots are received. The minimum number of approvals required is 256.

Additional information regarding the East Channel East Bulkhead replacement project Board of Directors Resolution (TKPOA #2020-00062) is available online at: www.tkpoa.com website Documents>> Ballots & Elections>> East Channel East Bulkhead Replacement Project.

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Our Association Has a Legal Duty to Replace the East Channel East Bulkhead

The TKPOA agreed and now is obligated by court order (1991 Superior Court of California – Stipulation Agreement No: 1225) to perform such repair, maintenance, and replacement of the East Channel East Bulkhead as is reasonably required to keep it in good and serviceable condition. All reasonable costs the TKPOA incurs performing that duty are court ordered shared between TKPOA (30%), Tahoe Keys Beach and Harbor Association (TKB&HA) (30%), and the Tahoe Keys Marina and Yacht Club (TKM&YC) (40%). However, the judgment also obligates the TKPOA to first pay the costs of this work through to project completion and then, after rendering an accounting, we are entitled to obtain reimbursement from TKB&HA and TKM&YC for their respective share of the total reasonable costs the TKPOA incurred.

Why Replacement not Repair?

In 2015 the TKPOA hired engineer Rob Noble – Noble Consultants G.E.C. Inc. to evaluate and report on the condition of the various bulkhead sections (“reaches”) within TKPOA. They reported the East Cove East Bulkhead (also called “Reach #19”) had an assumed remaining life of 5 years or less, expressed concerns about the risk and expense of possible failure(s) necessitating repair within its short remaining useful life, and ultimately recommended the TKPOA commence planning for it to be replaced in 2020.

In a February 2017 letter report of inspection, evaluation and recommendation specific to the East Channel East Bulkhead, the same engineers further reported the bulkhead showed significant signs of deterioration, was of very marginal strength, posed a significant risk of potential failure and recommended it be replaced with a new anchored bulkhead to be placed immediately in front of the existing bulkhead.

According to the engineer, the

Why Now?

East Channel East Bulkhead is at

According to the engineer, the East Channel East Bulkhead is at the end of its useful life, should be replaced now, and until it is replaced poses a significant risk of possible failure(s) along its 540-foot length. The TKPOA is legally obligated to do what is reasonably necessary to keep the bulkhead in good and serviceable condition. Any failure of the bulkhead before replacement will likely result in repair costs and the TKPOA possibly incurring other damages, fines, and/or expense to satisfy our legal duties. The Board is concerned delaying the replacement project beyond 2021 may result in such added costs. The Board is further Keys Breeze

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JULY 2020

the end of its useful life, should be replaced now, and until it is replaced poses a significant risk of possible failure(s) along its 540foot length.

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concerned any such added costs occurring before replacement could be construed as resulting from failure to replace it in the timeframe the engineer recommended and that TKB&HA and/or TKM&YC might challenge their obligation to share in payment of those costs as “unnecessary,” therefore “unreasonable,” and, thus, the TKPOA’s sole responsibility. Replacing the Bulkhead presently will eliminate those risks.

Also, the TKPOA anticipates conditions for project site access will be optimal in 2020 and 2021 which will likely result in significant project cost savings. In 2020 and 2021, the California Tahoe Conservancy (CTC) will maintain a temporary construction road during that phase of its 5-year Upper Truckee Marsh restoration project. With CTC coordination, that road will be available for us to use to access the East Channel East Bulkhead project site. Therefore, the TKPOA has a time sensitive golden opportunity for substantial cost savings and rare ease of equipment access to our project site if we replace the bulkhead in 2020 or 2021.

Conversely, if the TKPOA does not build in 2020 or 2021, over-land access to the project site would almost certainly be more difficult and expensive, particularly the further along the CTC has advanced with its Upper Truckee Marsh restoration project. The TKPOA would need to obtain the necessary approvals and permits to create its own temporary construction road for access to the project site and likely incur costs for permitting, constructing and decommissioning the access road, and site restoration of the affected areas. The potential costs of that activity are unknown and could be very substantial. Also, if those added costs are incurred because the project is delayed beyond 2021, those costs could potentially be contended “unnecessary” by TKB&HA and/ or TKM&YC because they were the result of unnecessary and/or unreasonable delay beyond the favorable access conditions of 2020 or 2021 and assert that any such added costs are therefore “unreasonable” and thus the sole responsibility of the TKPOA. The Board of Directors are united and firm in their believe the association and members’ Keys Breeze

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JULY 2020

interests are best served if the East Channel East Bulkhead is replaced this year or next, but no later than 2021.

Project Costs

The TKPOA commenced this bulkhead replacement project in 2016 by contracting with a project engineer for the work of project site evaluation and bulkhead replacement planning, design, and engineering. In April 2018, the TKPOA contracted with Simon Environmental Planning to prepare, process, and obtain the necessary permitting from involved regulatory agencies. As of May 15th, 2020, the TKPOA, has already incurred and paid $188,660 for engineering design and evaluation, professional services, permitting, and other project costs to bring the East Channel East Bulkhead replacement project to this construction phase.

In addition to the cost of the construction contract the membership is herein asked to authorize, the Board of Directors also anticipate the TKPOA will need to incur an additional project cost, not part of this spending authority request and presently estimated at $65,000, to hire a construction manager to oversee the regulatory compliance and actual construction to completion. The TKPOA does not have inhouse staff with the credentials required to perform the necessary construction management function and duties.

The East Channel East Bulkhead replacement project must be completed before the TKPOA is entitled to require any of the project cost be reimbursed by TKB&HA and/or TKM&YC per the 1991 Stipulated Judgment. The TKPOA has requested TKB&HA consider agreeing to make periodic progress payments to the TKPOA during project construction rather than waiting to reimburse their reasonable costs share when the project is completed. The TKB&HA has been cooperative throughout and we are optimistic they will agree to this arrangement despite the 1991 Stipulated Judgment’s provisions as to the reimbursement obligation timing.

The TKPOA has requested TKM&YC consider agreeing to make periodic progress |

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payments to the TKPOA during the project rather than waiting to reimburse their share of the reasonable costs after the replacement project is completed. The TKM&YC has not been cooperative and is not amenable to the arrangement.

In fact, the TKM&YC has, repeatedly, including as recently as June 2020, repudiated in writing their obligation for East Cove East Bulkhead replacement cost sharing.

The TKPOA has already had to sue TKM&YC to enforce the boat launch provisions contained within same 1991 Stipulated Judgment controlling the East Cove East Bulkhead Replacement. At the successful conclusion of that litigation we sought and obtained an attorney fees and costs award of approximately $105,798.83 and after pursuit was just recently able to collect that amount, in part through judicial levy and in part through voluntary payment by TKM&YC. While the Board has tried, and will continue to try and bring the TKM&YC into voluntary compliance with their obligations as to the East Channel East Bulkhead without the need for litigation, the TKPOA’s historical experiences with the Marina and their repeated express repudiation of the stipulated judgment, lead the Board to anticipate litigation might be necessary. Our legal counsel indicates a legal procedure is available wherein the TKPOA can, now that the TKM&YC has clearly stated their intent to violate the 1991 Stipulated Judgement, obtain judicial relief in anticipation of the seeming inevitable violation by TKM&YC of its duty to reimburse the TKPOA. The initial estimate for such litigation was $100,000 to $160,000.

That possible expense would not be a project cost, is not a part of this spending authority request, and would be subject to an award of reasonable attorney fees and court costs to the prevailing party in a contested action to enforce the 1991 Stipulated Judgment.

needed for this project are already in the Channel & Lagoons and Common reserves.

Through a Board of Directors “Board Action” we will temporarily borrow money from Common Reserve and Water Company Reserve to complete the funding for this project to conclusion and reimbursements are received from TKM&YC and TKB&HA.

Project Funding

Also any additional questions can be answered by contacting the TKPOA front desk at (530) 542-6444 Monday through Sunday 8:30 a.m.–4:30p.m.

Based on current financial analysis and reserve funding levels the TKPOA does not anticipate the need for a special assessment or short-term Common assessment increases related to this project. The reserve funds

Ballot Return and Ballot Counting

All members are strongly encouraged to vote as soon as possible so that a determination can be made on whether a quorum will be achieved or if the voting period needs to be extended.

Ballots must be received no later than July 27th, 2020 by 4:30 p.m. Ballots will be counted at the Board of Directors Regular Open Meeting at the TKPOA Pavilion on July 29th, 2020 at 2:00 p.m. The Board of Directors or the Inspector of Election may extend these dates. A quorum of ballots (509) must be returned for us to conduct a valid vote; approval requires the “For” vote of a majority cast. The minimum number of “For” votes needed for approval is 256. THIS VOTE DOES NOT AUTHORIZE A SPECIAL ASSESSMENT.

Additional information

Our website www.tkpoa.com is important communication tool for our membership.

We will continue to post to our website important information concerning the project including Keys Breeze articles, informational meeting and field trip notices, cost, and technical information. Additional information on the East Cove East Bulkhead replacement project are available online at: www.tkpoa. com website Documents>> Ballots & Elections>> East Channel East Bulkhead Replacement Project.

Questions or Requests for Information

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Public Safety Power Shutoff— Preparing for the Possibility

By Lee Kiolbasa, Emergency Manager, Liberty Utilities

LIBERTY UTILITIES IS WORKING YEAR-ROUND to mitigate the risk of a wildfire caused by electrical infrastructure. While we are making great strides addressing the safety and reliability of our grid, extreme fire conditions may still warrant preemptive de-energization measures, also referred to as a Public Safety Power Shutoff (PSPS). Therefore, planning for and knowing what to expect from a PSPS should be part of your wildfire protection and preparedness efforts.

What Constitutes Extreme Fire Weather?

A PSPS is reserved for times when fire weather conditions are at their most extreme and de-energizing a portion of the electrical grid is the prudent decision to best protect our customers, communities, and the environment.

Many of the same factors that are used to determine a red flag warning are also considered when determining if weather conditions warrant a PSPS. Liberty Utilities has deployed weather stations throughout the service area, collaborates with a fire and weather scientific consultant, the National Weather Service in Reno, Nevada, and local fire officials to monitor real time local weather conditions and evaluate if and when a PSPS is required to limit wildfire risk.

No single factor will drive a PSPS, as it takes a combination of factors reaching or exceeding a set limit to initiate a PSPS. Some of these factors include: • Low Humidity Levels – Potential fuels are more likely to ignite when there is a lower amount of water vapor in the air.

• Forecast Sustained Winds & Gusts – High winds can result in several factors that may cause a fire to ignite. Sustained winds can also cause the fire to spread and even throw embers into the air and create additional fires.

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• Dry Fuel Conditions – Trees and other vegetation act as fuel for wildfires. Fuels with low moisture levels ignite easily and spread rapidly as no heat energy is wasted trying to drive water out of the fuel.

• Red Flag Warnings – Issued by the National Weather Service to alert of the onset, or possible onset, of critical weather or dry conditions that would lead to swift increases in wildfire activity.

How Will We Know if a PSPS is Activated?

Advance notification is critical in any PSPS scenario and Liberty will alert customers, public safety partners, and others at the earliest opportunity.

When possible, Liberty will directly notify customers of a PSPS approximately 48 hours before power is shut off, 24 hours before power is shut off, just before power is shut off, during the PSPS and once power has safely been restored.

Direct notification is the best, most effective way to keep customers apprised of a PSPS event. We strongly encourage every customer to call Liberty at 1 (800) 782-2506 to confirm their contact information is up to date. If you have a loved one with access and functional needs, help them update their contact information and consider adding yourself as a secondary contact.

In addition to direct PSPS notifications and updates, Liberty Utilities will post detailed outage information at www.libertyutilities.com, as well as Facebook (@LibertyUtilitiesLT) and Twitter (@ LibertyUtil_CA).

Knowing if a PSPS event is coming, how long it will last, and who it will affect is an important first step in being prepared for and staying safe and comfortable should a PSPS event occur.

How do I Prepare?

Once you have ensured your contact information is up to date, PSPS preparation is not much different than any power outage preparation.

Customers should consider the following to ensure their homes, businesses and families are prepared: • Plan for medical needs that may be impacted by a power shutoff, including medications that need refrigeration or devices that require power. Be sure to register any medical-related energy needs at 1 (800) 782-2506.

• Create an emergency kit including flashlights, batteries, first aid supplies and maps of the local area. For additional emergency kit necessities, consult Ready.gov.

• Store non-perishable foods and water to support your family and pets for a minimum of 48 hours.

• Keep a full tank of gas in your vehicle as gas stations may be affected by a power outage • Keep cash available as ATMs and credit card machines may be unavailable during a power outage.

• Be sure phones and other critical electronic devices are charged and consider investing in a backup battery or power source, potentially one that can recharge with solar.

Liberty Utilities’ top priority is the safety of customers and our communities, and we will take every precaution action to keep our beautiful region safe from the risk of wildfire. To learn more about our wildfire mitigation programs, customers are encouraged to call 1 (800) 7822506 or visit LibertyUtilities.com.

It’s easy to be green and save money too!

We offer a variety of programs for residential and commercial

Local and Responsive. We Care.

customers to save energy and money — and help our environment.

Twitter@LibertyUtil_CA

And, many of these programs are at no cost to you!

Visit www.libertyutilities.com and click on the “Smart Energy Use” link at the top or call 1-800-782-2506.

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A CURRENT RULE CHANGE, NO LONGER ALLOWING HOMEOWNERS THE ABILITY TO DUMP THEIR USED SAUNA/HOT TUB WATER DIRECTLY INTO OUR WATERWAYS, IS A GOOD EXAMPLE OF A NEW RULE NEEDED TO KEEP UP WITH THE CHANGING ENVIRONMENTAL TIMES.

PRESIDENT'S LETTER

CONTINUED FROM PAGE 4

regarding most controversial topics and they will most certainly change. Don’t like the civil unrest and current events, those too will certainly change. Change is what makes some things better.

As Board President, I am confronted on many occasions by homeowners inquiring why a certain rule or procedure was added or changed. Most often, I can honestly say the change was made to make something better. Several years ago, I was present when our Architectural Control Department Manager, Linda Callahan, told a new Compliance Officer, “When people drive down Tahoe Keys Boulevard and enter the Tahoe Keys, they should know it, by just looking around.” I loved that statement then, as I do now, as it says a lot. Our community looks as it does, apart and better from most, because we have rules and regulations. Like any other subdivision, or small city for that matter, somebody somewhere, built that fence blocking their neighbor’s water view, planted that fruit tree causing a bear issue, put an old sofa out on the front lawn, parked Uncle Joe’s car project up on jacks in their driveway, or failed to maintain their home, causing the value of those around to be diminished.

Luckily, the TKPOA has rules to guard and protect all of us from these perils. As for new rules or changes, everyone should attend an Architectural Control Committee (ACC) and see firsthand, how hard our volunteers work with the ACC Department to maintain our community standards. Just when one would think we have a rule to address every situation, a totally unheard-of situation will arise, many times outside of Keys Breeze

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our current rules. Sometimes an existing rule needs updating or revising, sometimes, a new rule will need to be added to safeguard our home values and protect the beauty of our community and waterways. A current rule change, no longer allowing homeowners the ability to dump their used sauna/hot tub water directly into our waterways, is a good example of a new rule needed to keep up with the changing environmental times. Some rules regarding building specifications and lighting are always a work in progress.

I don’t envy the ACC Committee’s job in adapting new rules or revising existing rules to the ever-changing conditions. On this topic, please remember to not direct your disagreement or frustration of a rule to our ACC staff. Although we all rely on our ACC staff for their opinions and experiences, ultimately, it is the ACC Committee and the Board of Directors that create new rules or revises rules, based on member comments and feedback.

So, if you see a rule change pending in Keys Breeze, or online at the TKPOA webpage, make sure to make your voice heard and express your comments and feedback.

Like the weather, if we are going to maintain the Tahoe Keys as the premier location to live in South Lake Tahoe, our rules will most certainly, constantly be changing with the times. And yes, for the better. Hoping you all have a wonderful summer, and please continue your excellent feedback and comments, they are always welcomed.

Joe Sherry

TKPOA BOARD PRESIDENT JULY 2020

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DAVIS STIRLING CIVIL CODE § 4041 – Property Owners Mailing Address Information

By Heather Blumenthal, Operations Manager

AS OF JANUARY 1ST, 2017, every California Community

Association has been required to ask its members to provide their contact information and property status.

Civil Code § 4041 has required, starting January 1st, 2017, that each association must solicit the following information from its members and an owner of a separate interest shall, on an annual basis, provide written notice to the association of all of the following: 1. The address or addresses to which notices from the association are to be delivered.

2. An alternate or secondary address to which notices from the association are to be delivered.

3. The name and address of the owner’s legal representative, if any, including any person with power of attorney or other person who can be contacted in the event of the owner’s extended absence from the separate interest.

4. Whether the separate interest is owner-occupied, is rented out, if the parcel is developed but vacant, or if the parcel is undeveloped land.

Although the statute does not mention how often an association must solicit this information, it does state that each member is responsible for providing this information to the association on an annual basis. The Keys Breeze

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association shall solicit these annual notices of each owner and, at least 30 days prior to making its own required “Annual Disclosure”. TKPOA has previously provided this information request for 2020 to its members via the quarterly assessment mailing for the third quarter.

If a Property owner fails to provide the notices set forth in requirements (1) and (2) above, the last address provided in writing by the owner or, if none, the property address shall be deemed to be the address to which notices are to be delivered.

It’s important to note that as long as the Association requests all of the contact information above, Civil Code § 4041 places the responsibility on the property owners to provide their correct and current contact information. Requiring members to provide this information should aid associations in giving notice of meetings or for other required notices as well as with the collection of delinquent assessments as it should help negate the argument that a notice was sent to the wrong address in the future.

Please contact the TKPOA Front Desk Staff at info@ tahoekeyspoa.org if you have a change of property owners information and would like to request a Change of Address or 4041 Form Information.

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TKPOA “Contempt of Court Order” Case – TKM&YC vs TKPOA (SC SLT-4914) Abstract of Judgement Collected from the Tahoe Keys Marina & Yacht Club, LLC

By Kirk Wooldridge, TKPOA General Manager AS OF MAY 20TH, 2020, the Tahoe Keys Marina & Yacht Club LLC. (TKM&YC) completed its payment of the Abstract of Judgment for a total of $105,789.55 due to the Tahoe Keys Property Owners Association (TKPOA). This past August 2019, the TKPOA recorded an Abstract of Judgment – Civil and Small Claims against the TKM&YC with El Dorado County Recorder DOC-2019-0031185-00.

This Abstract of Judgment was the result of three years of legal action against the TKM&YC for the ““Contempt of Court Order” Case – TKM&YC vs TKPOA (SC SLT-4914) [TKPOA vs Horton], filed in the Superior Court of California – County of El Dorado – Cameron Park, California. The amount of this Abstract of Judgment to be collected from the TKM&YC was $98,006.92 for legal fees incurred by the TKPOA in pursing this legal action and the two court hearings on August 30th, 2017 and October 10th, 2018.

Attorney Art Zorio and the Law Firm Brownstein Hyatt Farber Schreck, LLP (BHFS) representing the TKPOA originally filed for a motion for Legal Fee reimbursement for the total amount of $181,466. In January 2019, the Superior Court of California – County of El Dorado – Cameron Park ruled that the amount of $98,006.92 would be allowed for this case.

Questions or Additional Information

For additional information on “Contempt of Court Order” Case – TKM&YC vs TKPOA (SLTL-4914) [TKPOA vs Horton], the November 2nd, 2018 “Order and Judgement of Contempt” and full court transcript of the October 10th, 2018 hearing, as well as the motions filed above can be reviewed on the TKPOA website at www.tkpoa. com following this link: under “Litigation” https://www. tkpoa.com/documents/category/86-litigation. Please contact the TKPOA front desk staff (530) 542-6444 if you have questions or need additional information.

IT’S THAT TIME AGAIN, CANDIDATE’S NIGHT IN THE TAHOE KEYS EACH YEAR, PRIOR TO THE GENERAL ELECTION for new, and sometimes returning Board Members, the Tahoe

Keys holds one of the best and most productive events of the year. The Town Hall Forum, “Meet the Candidates Night” for the 2020 Board of Directors Election will be held on Thursday, July 23, 2020, from 5 to 9 p.m. at the TKPOA Pavilion. As a prospective candidate, I can say I enjoyed the evening, which gives each candidate a chance to discuss their views on the many challenges facing the Tahoe Keys. It was a learning experience, to learn what topics were important to the attending members, and I hope to always incorporate that knowledge into the many decisions as a Board Member. This forum is an incredible opportunity to ask the candidates questions, gain insight, and to make informed choices of our prospective candidates’ knowledge and potential success as a Board Member. With currently 16 candidates running for four open Board Seats, it will surely be a busy and informative night. The success of the night can only materialize if homeowners attend and participate. Be involved, ask questions, and enjoy the night. I look forward to seeing everyone there.

Joe Sherry, TKPOA BOARD PRESIDENT Keys Breeze

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Accounting

Report

By Don Havard, Accounting Manager THE ASSESSMENT PAYMENT SCHEDULE is located towards the back of every Keys Breeze. Assessments are due on a

Quarterly basis as indicated in the Assessment Payment Schedule. No other payment plans have been approved by the Board, so please pay your assessment in full according to the schedule.

QUARTERLY ASSESSMENT

DUE ON

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

January 1st April 1st

July 1st October 1st

LATE FEES APPLY AFTER

Mail payments to:

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

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

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

Meetings and Approvals

At the June 20th, 2020 Board of Directors Meeting, the TKPOA Board of Directors approved the 2020 March and April Financial Statements. These Financial Statements can now be located on the TKPOA website.

The Board of Directors also reviewed homeowner delinquent accounts and conducted scheduled disciplinary hearings on 2 delinquent accounts. There were no approvals for lien notices for delinquent homeowners to review. Disciplinary hearings are generally held when a homeowner is delinquent on 2 quarterly assessments.

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The Finance Committee did not have a quorum for its June 23rd, 2020 meeting. The Committee will review the May and June Financial Statements at its next meeting on July 21st, 2020. The Finance Committee will also review the first draft of the 2021 TKPOA Budget at this July 21st, 2020 meeting.

As a reminder, the Budget meetings, the Board meetings, and the Finance Committee meetings and are open to members of the TKPOA (meeting dates are subject to change).

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TAHOE KEYS PROPERTY OWNERS ASSOCIATION OPERATING AND RESERVE FUND BALANCE RESULTS AS OF MAY 31, 2020 (ACCRUAL BASIS)

FUND

OPERATING

RESERVE

TKPOA Common

$131,759

$886,936

$-

$312,261

$220,460

$432,070

Water Company

$78,414

$649,453

TKPOA TOTALS

$430,633

$2,280,720

Com—Channels & Lagoons Water Quality

SUBDIVISIONS Cove 1

$42,420

$181,412

Cove 2

58,009

165,007

Cove 2A

22,551

304,494

Cove 3A

19,214

253,692

Cove 3B

5,767

237,106

Cove 3C

44,667

351,599

Cove 4

49,037

274,315

Cove 5

$6,435

$915,661

Islanders I

34,313

256,725

Islanders II

16,144

138,672

Islanders III

29,588

489,121

Tahoe Marina Shores

76,001

103,897

Lighthouse Shores

42,389

179,769

PineStone East

7,774

75,810

PineStone West

3,098

11,890

PineStone 3

27,048

50,739

SUBDIVISION TOTALS

$484,454

$3,989,910

ASSOCIATION TOTALS

$915,087

$6,270,630

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TAHOE KEYS PROPERTY OWNERS ASSOCIATION OPERATING AND RESERVE FUNDS NET INCOME RESULTS AS OF MAY 31, 2020 (ACCRUAL BASIS)

Annual Expense Budget % Remaining Budget

Operating Funds (Year to Date) FUND

INCOME

EXPENSE

NET INCOME

BUDGETED EXPENSE

%

Reserve Funds (YTD) NET INCOME

TKPOA COMMON $1,325,562

$700,653

624,910

$2,285,346

69.3%

275,995

Water Quality

244,500

95,068

149,432

528,161

82.0%

369,408

Water Company

305,332

287,328

18,004

657,859

56.3%

46,528

$1,875,394

$1,083,049

$792,346

$3,471,366

68.8%

$691,932

Common

TKPOA TOTALS

SUBDIVISIONS Cove 1

$42,766

$29,009

13,757

$69,043

58.0%

(32,591)

Cove 2

34,877

23,357

11,520

63,052

63.0%

24,470

Cove 2A

56,042

39,417

16,626

95,611

58.8%

47,066

Cove 3A

42,636

26,498

16,138

72,940

63.7%

25,641

Cove 3B

37,284

27,086

10,198

63,545

57.4%

23,503

Cove 3C

69,813

48,378

21,435

131,063

63.1%

(33,035)

Cove 4

28,458

18,835

9,623

54,785

65.6%

27,216

Cove 5

145,447

99,219

46,228

249,791

60.3%

55,696

Islanders I

17,828

12,539

5,289

33,111

62.1%

13,850

Islanders II

34,328

29,105

5,223

60,961

52.3%

24,971

Islanders III

72,067

47,678

24,389

120,461

60.4%

25,287

Tahoe Marina Shores

92,523

63,353

29,170

167,149

62.1%

(17,907)

Lighthouse Shores

20,131

8,736

11,395

37,769

76.9%

(101,623)

1,745

503

1,242

1,242

59.5%

2,464

387

335

51

807

58.4%

971

2,226

1,230

996

2,961

58.5%

8,404

$698,556

$475,278

$223,278

$1,224,291

61.2%

$2,573,950

$1,558,327

$1,015,624

$4,695,657

66.8%

12

58.3%

PineStone East PineStone West PineStone 3 SUBDIVISION TOTALS ASSOCIATION TOTALS

Operating Months Remaining

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94,385 $786,317

2021 + BUDGET = PROCESS $

By Don Havard, Accounting Manager

What is a Budget?

A budget, also known as an annual operating budget, is a financial plan for the upcoming fiscal year. (January 1st, 2021 to December 31st, 2021). The budget is a guide for the Tahoe Keys Property Owners Association (TKPOA) Management Staff, Cove Advisors and Board of Directors to use to ensure the Association’s financial goals are met by the end of the fiscal year. The Budget is broken into “operating periods”, which in our case are monthly periods that are added up to give the total forecasted or anticipated revenues and expenses for the entire fiscal year. The Budget contains the Associations Revenue (Income), Payroll, and Operating Expenses as well as the individual Cove/ Subdivision Budgets. Based on these revenues and expenses it also provides Staffing Guidelines for the departments.

The Finance Committee

One of the responsibilities of the Finance Committee is to assist in building and reviewing the fiscal year budget.

The Finance Committee is comprised of members of the TKPOA, which are actual residents that have input on how the TKPOA money is spent. The members who serve on the Finance Committee represent a cross section of the community. Of course, there are some members willing to serve who have expertise in areas such as insurance or finance that contribute their expertise. The committee members are volunteers and they hold regular monthly meetings throughout the year, currently scheduled on the Tuesday after the Board of Directors Regular Board Meeting that is currently held on the third Friday or Saturday of the Month. The Finance Committee Meeting is held at 10:00 a.m. in the TKPOA Pavilion Boardroom. The TKPOA Board of Director’s Treasurer is a member of the Finance Committee. As the Chair of the Finance Committee the Treasurer’s job is to keep everyone on track as the budget process takes place and the new budget is prepared.

The TKPOA Management Team Role

Following the direction given the TKPOA Board of Directors and 2021 Budget Subcommittee, the TKPOA Management Team creates the “first draft” of the budget for all eight departments that comprise the Association “business units”. The Accounting Manager and General Manager work with the TKPOA Management Team on preparing their individual budgets to meet their operational needs as directed. The Accounting Manager, General Manager and Project Coordinator also will need to meet with the Cove/Subdivision Advisors to develop their individual budgets.

The “First Draft” of the proposed 2021 Budget will be presented to the 2021 Budget Subcommittee for review, on Wednesday, July 15th, 2020. This Subcommittee will review the budget and returned it to the General Manager and Accounting Manager for discussion and changes.

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The General Manager will present the “Second Draft” of the proposed 2021 Budget to the Finance Committee during an Open Meeting on Tuesday, July 28th, 2020 at 10:00 a.m. at the TKPOA Pavilion. The Finance Committee will review the budget and returned it to the Accounting Manager for discussion and changes. This meeting is open to all TKPOA members.

The General Manager will present the “Third Draft” of the proposed 2021 Budget to a Joint Meeting of the Board of Directors and the Finance Committee during an Open Meeting on Thursday, August 13th, 2020 at 10:00 a.m. at the TKPOA Pavilion. This meeting is open to all TKPOA Members.

After this process, again the Accounting Manager and General Manager and TKPOA management staff will make changes to the proposed budget, based on the Finance Committee and TKPOA Board of Directors recommendations.

The Accounting Manager and General Manager plan to present the “Final” Budget to the TKPOA Board of Directors for approval at the regular TKPOA Board meeting as early as Saturday August 15th, 2020 at 2:00 p.m. at the TKPOA Pavilion. If more review is necessary, then it will again be presented on Saturday, September 19th, 2020 at 2:00 p.m. at the TKPOA Pavilion the meeting is open to all TKPOA members.

At either of these meetings, the Board may set the assessment amounts for the 2021 Fiscal Year.

Please Note: This schedule is subject to change.

The final budget needs to be approved on a timely basis to meet the Annual Disclosure deadline, for delivery to the TKPOA members per the Bylaws, 45 days before the new Fiscal Year.

The TKPOA Accounting Manager and the TKPOA Treasurer make sure the TKPOA Board, Cove Advisors and Finance Committee understand the three components of the budget and the financial health of the Association.

1-OPERATING FUNDS AND EXPENSES are needed for daily operation of the Tahoe Keys Property Owners Association. These are broken in to non discretionary expenses which would be required costs such as common areas electricity and water, grounds maintenance, insurance, TKPOA management and general maintenance. Most of these expenses are either contractual or can be reasonably estimated based on past amounts, past experience, or other cost allocation algorithms or formulas. Then there are Discretionary

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Expenses that are budgeted based on estimated business and service levels that can be spent during a budgeted month based on actual business levels that occur. An important consideration when looking at the “line items” in the operation budget funds is what are the expectations of the community members and what is the balance that needs to be achieved between costs of operation and the service that can be provided.

If these expenses are too high, the Finance Committee and TKPOA Management will look for ways to lower expenses without comprising service. If budget does not balance, the Finance Committee may have to make some tough decisions and recommendations to the TKPOA Board of Directors.

2-RESERVE FUNDS need to be maintained at sufficient levels. The Reserve Funds provide money for on going the repair and replacement of the community assets (Common, Water Company and Water Quality Funds) such as buildings, pools, and Townhome Reserve Funds, such as Cove roofs, docks and asphalt, etc.

3-DEVELOPMENT FUNDS for additions or enhancements to an existing TKPOA common property that may not be currently accounted for in the current Reserve Funds. This is a function of what community members want and are willing to pay for.

The community should provide input and approval for use of these funds since in California major renovations; additions and/or some improvements or maintenance projects might require a “Special Assessment” (which requires approval, when the amount is greater that 5% of the Association’s fiscal year budget).

In Closing

With this knowledge, TKPOA Board of Directors, the Board Subcommittee, the Finance Committee, Cove Advisors and the TKPOA Management Team will analyze the proposed budget drafts and the final draft.

The final budget that is adopted will be then used to determine the Annual Member Assessment that will balance the budget and cover all the Fiscal Budget years’ expenses for the TKPOA. It takes the entire Budget process, the TKPOA Board of Directors, Cove Advisors and Finance Committee all through volunteer hours, and the TKPOA management staff to work numerous hours to prepare the optimal financial plan for the upcoming year, for the approval of a new Fiscal Year’s budget.

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Electronic Communications

By Heather Blumenthal, Operations Manager

EACH YEAR IN OCTOBER, TKPOA conducts a mailing to each member for their copy

of the Annual Disclosure. This 80+ page document includes the upcoming year’s Operating Budget, Notice of Assessment Increases, Budget and Assessment Summary, Annual Update of TKPOA’s Reserve Study, and other pertinent required information for members of the TKPOA as we prepare to go into a new year. This mailing is a requirement of Civil Code §4040 for Homeowners Associations.

In 2018, the costs for printing and mailing the 2019 Annual Disclosure to all 1,529 members of the TKPOA totaled approximately $12,000. New for 2020, updates to the Civil Code requirements allowed for Associations to provide members their Annual Disclosure via electronic delivery, such as email, as long as the member has provided the Association with a completed and signed “Consent to Receive Disclosures via Electronic Delivery” Form.

As of June 30th, 2020 TKPOA has received 500 “Consent to Receive Disclosures via Electronic Delivery” forms from members in time for the mailing of the 2021 Annual Disclosure. In October 2020, these 500 members will be sent an email with a link to their copy of the 2021 Annual Disclosure, resulting in an approximately $3,000–$5,000 savings in printing and mailing costs.

In order to increase these cost savings, TKPOA needs more members to sign up to receive their Annual Disclosures, and other communications via electronic delivery (email) as allowed by law. Examples of other electronic communications you may receive from TKPOA include email eblasts that get you the latest and greatest information on topics such as TKPOA Board Meetings, Town Hall Forum Announcements, Weed Harvesting Schedules, current and upcoming projects, Board Elections, etc.

The “Consent to Receive Disclosures via Electronic Delivery” form can be found on the TKPOA website www.tkpoa.com, requested from the front desk at info@ tahoekeyspoa.org, or requested in person at the TKPOA Pavilion Office. Completed and signed forms should be returned to the TKPOA office at 356 Ala Wai Blvd, South Lake Tahoe, CA 96150. Contact the front desk with any questions at (530) 542-6444.

Please join us in our efforts in saving one tree at a time and a potential annual savings of $10,000–$12,000 for the Association!

Keys Breeze

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JULY 2020

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