RANCHO MONTEREY COMMUNITY ASSOCIATION Town Hall Mee+ng Dra/ Maintenance Matrix January 16, 2013
Questions from the Owners • In what state is the HOA budget? • Why do our fees keep going up? • How can we get them to go down? • What is this Matrix and how will it aﬀect me? • What are the highlights? • Will this aﬀect my fees? • When will it go into eﬀect? NOTHING HAS BEEN ADOPTED THIS IS FOR REVIEW AND DISCUSSION
Questions from the Owners • In what state is the HOA budget? • The Associa+on is only 30% funded. • Deferred Maintenance issues con+nue to increase. • Why do our fees keep going up? • Plumbing, front door installa+ons, wood repairs, the need to beXer fund reserves and general maintenance are the primary reasons for the annual increases.
Questions from the Owners • How can we get them to go down? • Find savings in every corner of the budget ($8,000 saved in 2013 insurance policy) • However, age increase = repair $ increase • The only way for dues to remain constant (or possibly decrease) is for the Associa+on to stop funding items that are not its responsibility (per the CC&Rs).
Background • During the past 28 years, the board of directors of Rancho Monterey has made varying decisions regarding homeowner/HOA repair responsibili+es. • This has had a direct impact on the amount we pay as assessments. • A/er transferring Rancho Monterey’s management to PowerStone, we realized that we did not have a clear understanding of why certain repairs were paid for by the HOA.
Background • A/er reviewing our CC&Rs, we discovered that in the past, we may have paid for repairs that were not the responsibility of the HOA, but rather the individual homeowners. • In order to make sure that the Associa+on is using our funds wisely, and in complete compliance with our legal responsibili+es contained in our CC&Rs, legal counsel have created this matrix to beXer clarify for all homeowners and both present and future boards, our speciﬁc responsibili+es.
The Responsibility Matrix • A guiding reference table that reﬂects the current CC&Rs, to guide the Board in the repairs and maintenance costs the HOA should cover. • Reviewed by two law ﬁrms, Powerstone, inves+gated by several specialty vendors (plumbing, electric, etc) to conﬁrm the reality of our architecture and how it relates to the CC&Rs.
Questions from the Owners (Cont.) • What is this Matrix and how will it aﬀect me? • The matrix is a document that was prepared by legal counsel that outlines all components of the HOA and states whether each item is homeowner or Associa+on responsibility. This item is based on the Associa+on’s CC&R’s. • What are the highlights? • The only items that have been corrected in terms of ﬁnancial responsibility are: plumbing, garage doors and front doors. • Historically the Associa+on has paid for these items. • Will this aﬀect my fees? • If the matrix is adopted – the assessments will not increase this year. • When will it go into eﬀect? • The matrix has been sent out to the membership for the mandatory 30-‐day review. • The Board will review this maXer at the February 26, 2013 mee+ng and decide whether or not to adopt the document. If adopted, it will go into aﬀect 30 days later.
The Problem Areas • Plumbing • A general leak can cost the Associa+on anywhere from $500.00 -‐ $5,000.00 depending on damages and/or repairs. • A slab leak can cost the Associa+on anywhere from $2,500.00 -‐ $10,000.00 depending on damages and/or repairs. • Front Doors • A new set of double doors costs the Associa+on approximately $1,500.00.
Effect of Adopting the Matrix • Standardize responsibility for repairs between the HOA and owners • The Associa+on would not con+nue paying repair for front doors, garage doors and plumbing. • It will raise awareness of the Associa+on’s opera+ng costs • Lower our costs • Creates an immediate increase in reserve funding by 2% • Reduce the opera+ng expenses associated with garage/front doors and plumbing • Eventually reduce fees and assessments • Reallocate funds to deferred maintenance project to address general maintenance (wood, stucco, etc.) instead of comple+ng these repairs via individual owner requests.
Next Steps • The dra/ Maintenance Matrix has been mailed to all of the owners for the mandatory 30-‐day review period. • All owners are encouraged to send in their feedback (in wri+ng) regarding the proposed matrix. • The Board will review this maXer at the February 26, 2013 Board mee+ng and will consider adop+ng the matrix. • All owners are welcome and encouraged to aXend the mee+ng. • IF the Board adopts the Maintenance Matrix – all owners will be no+ﬁed in wri+ng at the matrix will be eﬀec+ve April 1, 2013.
OWNER OWNER OWNER HOA HOA HOA Component Duty to Duty to Duty to Duty to Duty to Duty to Maintain Repair Replace Maintain Repair Replace I. Unit and Interior Components [†] Air CondiJoning and HeaJng (HVAC) Systems -‐ located within or servicing X X X only 1 Unit Air CondiJoning Pad supporJng Unit’s compressor and equipment X x X Appliances within the Unit X X X Beams [*] X X X Bearing Walls [*] X X X Ceilings -‐ interior ﬁnished and unﬁnished surfaces [*] X X x Door Frames X X X Door Hardware X X X Doorsteps – Surface maintenance only X X X Driveways X X X Ducts [*] X X X Electrical System –within and servicing only 1 Unit X X X Entryways -‐ surfaces only X X X Restricted (Exclusive Use) Common Area – Surface Maintenance X X X Exterior Doors (including Garage Doors), including Hardware & Weatherstrip X X X
OWNER OWNER OWNER HOA HOA HOA Component Duty to Duty to Duty to Duty to Duty to Duty to Maintain Repair Replace Maintain Repair Replace 16 Firebox -‐ interior surfaces only X X X 17 Fireplace (structural) and chimney X X X Fixtures -‐ located within and 18 X X X servicing only 1 Unit Floors -‐ interior surfaces only, 19 including any ﬁnishings and X X X coverings Floors -‐ all except ﬁnished surfaces 20 X X X [*] Incl. Soot 21 Flues [*] X X Cleaning 22 Founda+ons [*] X X X 23 Furnishings X X X Garages -‐ Including garage door, 24 hardware incident thereto, and X X X any electrical opening equipment Interior Plumbing -‐ within and 25 X X X servicing only 1 Unit Plumbing -‐ outside Unit boundary 26 and/or servicing more than 1 Unit X X X and/or common area Plumbing (Drain and Sewer) -‐ Keep Clear of 27 outside Unit boundary but X X X Obstruc+ons servicing only 1 Unit
OWNER OWNER OWNER HOA HOA HOA Component Duty to Duty to Duty to Duty to Duty to Duty to Maintain Repair Replace Maintain Repair Replace 28 Interior Staircases X X X 29 Mirrors X X X 30 Non-‐Perimeter (i.e. interior) Doors X X X Non-‐Perimeter interior Walls 31 X X X (except load-‐bearing walls) U+lity Outlets -‐ located within and 32 X X X servicing only 1 Unit Pa+os – Periodic Structural Repair, 33 X X Sealing, Pain+ng, or Replacement 34 Pa+os – Surface Maintenance Only X Perimeter (i.e., boundary) Unit 35 X X X Doors Perimeter Unit Walls -‐ interior 36 X X X surfaces only Perimeter Unit Walls -‐ all except 37 X X X interior surfaces Pipes/Plumbing -‐ outlets and 38 pipes/plumbing within & servicing X X X 1 unit only [*] Pipes/Plumbing -‐ all except pipes/ Keep Clear of 39 plumbing within & servicing Unit X X X Obstruc+ons [*] 40 Roofs [*] X X X 41 Screens X X X
OWNER OWNER HOA HOA OWNER Duty HOA Duty Component Duty to Duty to Duty to Duty to to Maintain to Maintain Repair Replace Repair Replace 42 Shufers X X X 43 Slabs X X X Telephone Wires -‐ internal and 44 X X X external serving Unit only Termite & wood-‐ destroying pest 45 damage to Common Areas X X X (including structural) Termite, wood destroying or other 46 X X X pest damage to Unit interior 47 Unit interior X X X U+lity Installa+ons and Outlets -‐ 48 X X X within the Unit U+lity Installa+ons -‐ outside Unit 49 X X X boundaries 50 Ver+cal Supports X X X Water Damage to Unit interior, including Mold Contamina+on, 51 X X X unless covered by HOA insurance [*] Water Heaters -‐ within and 52 X X X servicing only 1 Unit
OWNER OWNER OWNER HOA HOA HOA Duty Component Duty to Duty to Duty to Duty to Duty to to Maintain Maintain Repair Replace Repair Replace Windows, including glass, window 53 X X X frames, hardware and equipment Wires -‐ within and servicing Unit 54 X X X only Unless Wires -‐ all except within and/or 55 maintain by X X servicing Unit U+lity Co. II. Common Area and Exterior Components 1 Associa+on Property X X X 2 Bearing Walls X X X 3 Common Area Structural Elements X X X 4 Common Recrea+onal Facili+es X X X 5 Common Area Landscaping X X X Common Area Plumbing, Electrical, 6 X X X Hea+ng, and Ligh+ng 7 Conduits X X X 8 Driveways X X X Unless 9 Gas Pipes -‐ except outlets in Units maintain by X X U+lity Co. 10 Open Space Areas X X X 11 Open Parking Areas X X X 12 Paved Surfaces X X X
OWNER OWNER OWNER HOA HOA HOA Component Duty to Duty to Duty to Duty to Duty to Duty to Maintain Repair Replace Maintain Repair Replace 13 Perimeter Walls and Fences X X X 14 Sewer Lines not serving only 1 Unit X X X 15 Storm Drains X X X 16 Streets X X X 17 Street Ligh+ng Systems X X X 18 Rain GuXers X X X 19 Roofs X X X 20 Sidewalks X X X 21 Slabs and Founda+ons X X X 22 Swimming Pool & Spa [*] X X X Swimming Pool Area, Fencing, 23 X X X Furniture, and Equipment [*] Termites and Wood Destroying 24 Pests -‐ common area treatment X X X and eradica+on program Water Pipes -‐ except outlets 25 X X X located in Units 26 Yards X X X Yards -‐ Improvements installed by 27 X X X Owner
* IMPORTANT: Responsibility for maintenance, repair and replacement is generally as set forth in this Summary of Responsibility. However, please note that this may be changed, in any case where a parJcular item of maintenance, repair or replacement is caused by negligent or willful conduct on the part of another person or enJty. In such cases, the responsibility falls on the person or enJty responsible for the damage. (CC&Rs, SecJon 2.08.) † IMPORTANT: The Unit boundaries are deﬁned in the CC&Rs, Condominium Plan, and California Civil Code. The Unit is bounded by "the interior unﬁnished (meaning exclusive of wall coverings, ﬂoor coverings, ﬁxtures or decoraJons) surfaces of the perimeter walls, ﬂoors, ceilings, windows, and doors" of the dwelling space, including those interior surfaces (i.e., the drywall, doors, windows, etc.). (CC&Rs, SecJons 1.54, 2.10.) The Unit includes all interior non-‐load bearing walls and ﬁxtures; the Unit Owner is also responsible for maintenance and repair of all uJlity components serving only his or her Unit. (CC&Rs, SecJon 2.10.) Entry areas and paJos are "restricted common areas,” which each Owner must maintain in good condiJon; however, the Owner is not responsible for most periodic repairs. Finally, other “exclusive use common areas" which Owners must maintain and repair include the windows and doors, and all associated hardware, screens and equipment, and shufers, window boxes, and similar components located outside the Unit boundaries but serving only that Unit. (CC&Rs, SecJon 2.10; Civil Code SecJons 1351(i), 1364.)
ProServ Plumbing and Drain November 5, 2012 Rancho Monterey Homeowners Associa+on c/o Powerstone Property Management 16470 Balce Parlcway Irvine, CA 92618 Kendrah Kay, Community Manager Dear Kendrah: Proserv completed a visual inspec+on of the meters at Rancho Monterey and determined that each individual unit had their own water meter. Therefore, we have concluded that there are no common use water supply pipes associated with each individual unit. Please let me know if you need any addi+onal informa+on. Thank you! Warm Regards, ShawnMarie Ward Commercial Accounts 3012 Enterprise Costa Mesa, CA 92626 (714) 540-‐8400 FAX (714) 546-‐4006 www.proservplumbing.com
Moulton Niguel Water November 14, 2012 Regarding: Rancho Monterey Community Associa+on All units in Rancho Monterey Community Associa+on are served by individual meters. They should all have separate accounts for each address. All commercial irriga+on and domes+c meters are the responsibility of Rancho Monterey Community Associa+on. Sincerely, MOULTON NIGUEL WATER DISTRICT Tim Land Customer Service Crew Chief a public agency at: 27500 La Paz Road, Laguna Niguel, CA 92677-‐3489 Mailing Address: P.O. Box 30203, Laguna Niguel, CA 92607-‐0203