1. 8VisionWinter2013|www.cacm.org
Continuedonpage10
ocatedjusteastofSanJuanCapistrano,in
unincorporatedSouthOrangeCounty,isthe
historic23,000-acreRanchoMissionViejo–
currentlyhometotheregion’slastcattleranch,acresofagricultural
fieldsandforeverprotectedopenspaces.Italsoincludestheveryfirst
villageofwhatwilleventuallybecomeoneofthelargestmaster-planned
communitiesinthenation.
Overthecomingyears,thenewranchcommunityofRancho
MissionViejoisenvisionedtotakeshapeonabout6,000acresofthe
sameranchlandsheldbytheO’Neill-Avery-Moisofamilysince1882.
Atotalof14,000homes(withupto6,000forfolksage55-plus)are
planned,aswellassitesfornewschools,parksandrecreationalfacilities;
upto5millionsquarefeetofcommercialuses;andanetworkofhiking/
bikingtrails.Theremaining17,000acresofthefamilyranchwillbe
combinedwithadditionaladjacentopenspacetoformthe21,000-acre
ReserveatRanchoMissionViejo,aprotectedopenspaceandhabitat
conservationarea.
InlateJune2013,thenewcommunityofRanchoMissionViejowas
transformedfromvisiontorealitywiththesuccessfulgrandopening
ofitsmulti-generationalvillageofSendero.Encompassingnearly690
acres,Senderooffers11differentresidentialneighborhoodscraftedby
eightdifferenthomebuilders,includingfourneighborhoodsofprimarily
singlestory55-plushomes.
Nowthatescrowshavebeguntocloseandresidentsarepreparing
tomovein,thecommunitydeveloper,RanchoMissionViejoLLC(The
Ranch),recentlyunveileditsnewmodelforcommunitygovernance,
whichgoesbeyondtheperimetersofinfrastructureandcommunity
lifestylewithinaMasterMaintenanceCorporation(MMC).Toour
knowledge,TheRanchisthefirstdevelopertoincorporatePolicy
Governance®asawayofdoingbusiness,andthisisthefirst
commoninterestdevelopmentwithinthestate(andperhapsthe
nation)tohavethisstyleofgovernancemandatedwithinthe
documents.
MakingPolicyGovernanceaPriority
AfterattendinganewPolicyGovernance(PG)coursedevelopedby
CACMandtaughtbyPGguruBillCharney,TheRanch’sCommunity
ServicesDirectorAmayaGenaro,CCAM,wasimpressed.Genaro
incorporatedtheconceptandevenrecognizedadditionalpotential
EMERGINGTRENDS
Whyanewmaster-planned
communityismandating
PolicyGovernance
BYVICKIMacHALE,CCAM
WHATISPOLICY
GOVERNANCE?
PolicyGovernanceprovidesboards
withaframeworkforsuccessas
visionaryleaders.Theprinciples,
developedbyJohnCarverfornon-
profitorganizations,guidedecision-
makingthroughfourcategoriesof
policy:
Ends
Theorganizationalproductsand
outcomes.Thesepoliciessuccinctly
statethe“bottomline”forwhichan
organizationexists:Whatresults?
Forwhom?Atwhatworth?Atwhat
priority?
ManagementLimitations
Definetheboundariesoflatitude
andauthoritytheboardvestsin
theCEOandstaff.WhilePolicy
Governancedoesnotdictatewhat
thedegreeofdelegationistobe,
itenablesboardstoarticulate
withabsoluteclaritytheCEO’s
decision-makingauthority.Asa
result,CEOshaveclarityabouttheir
empowerment,withnoconfusionas
towhetheraparticulardecisionis
tobemadebyboardorstaff.
GovernanceProcess
Theboarddefinesitsowntasks
andhowtheywillbecarriedout.
Allofthecollectiveandindividual
expectationsofdirectors,officers
andboardcommitteesareclarified.
Board-ManagementDelegation
Prescribeshowauthorityis
delegated,andhowitsproperuseis
monitored.
NewtoPolicyGovernance?
CACMoffersbothanintroductory
andadvancedcoursetohelpyou
learnhowtoimplementPolicy
Governanceinyourassociation(s):
BDA300Fundamentalsof
EffectiveGovernanceandBDA500
EffectiveGovernancePrinciples
forCommunityAssociations(pre-
requisitesapply).Learnmoreat
www.cacm.org.
www.cacm.org|VisionWinter20139

2. 10VisionWinter2013|www.cacm.org
WhereNoDeveloperHasGoneBefore
Continuedfrompage9
inmovingHOAboardsawayfroma
(micro)managementstructureandinto
agovernancestructure.ToddBeebe,
CCAM,theformerExecutiveDirector
forthe4,000-acrecommunityofLadera
RanchandrecentlyappointedGeneral
ManagerforRanchoMissionViejoalso
attendedCACM’sclassonPG,andhewas
instrumentalinbringingtheconceptto
LaderaRanch.
WithGenaroandBeebeatthehelm
ofthenewRanchoMissionViejoMMC,
TheRanchteamsoonlearnedabout
thePGmodelandwasintroducedto
Charney,whosharedhowtheHOAcould
flourishunderaPGstyleofleadership.
ByincorporatingthePGmodelduring
thedevelopmentprocess,Charneysaysit
establishesasetstandardandcultureforall
futureboards.TheRanchteamembraced
thenewdirectionandisholdingitself
accountabletothisformofgovernanceas
developerboardmembers.
Inordertoensurethesuccessof
aPGgovernancestructureatRancho
MissionViejo,TheRanchteamknewit
Byincorporating
thePGmodel
duringthe
development
process,it
establishesaset
standardand
cultureforall
futureboards.
wasessentialtobuilditintothegoverningdocuments.TheRanchmanagementteam,its
communitydevelopmentteamandevenitsattorneyshavebeenentrenchedincreatingthe
governingdocumentswhiletakingclassesthemselvestofullyunderstandandincorporate
PGintothedevelopment.Whilethegoverningdocumentsinmanywaysresemblemore
traditionalversions,thebylawsarewherethebiggestdifferencessurface;forexample:
Bylaws4.3:BoardPowertoAdoptandAmendPolicyManual
TheBoardhasthepowertoadoptandamendthePolicyManual.ThePolicyManualis
intendedtoincludegoverningpoliciesthatsetforththeBoard’sperformanceexpectations
foritself,fortheCommunityManager,andothersinvolvedwithRanchoMMC
governance.ThePolicyManualwillgenerallydefineRanchoMMCgovernancepolicesin
connectionwiththefollowing:
•OrganizationalEndsPriorities–strategicprioritiesthatdefinetheresultsRancho
MMCistoprovideforthemembership,andthusguidetheDirectors,officersand
managementinoperationaldecisions.
•ManagementParameters–boundariesofdecision-makingwithinwhichthe
CommunityManagerisauthorizedtoactbetweenBoardmeetings.
•BoardProcess–additionalstandardsfortheBoard’sperformanceandconductofits
ownwork,includingexpectationsforDirectorsandofficers.
•Board/ManagementDelegation–howauthorityisdelegatedbytheBoardtothe
CommunityManager,anditsusemonitoredandevaluated.
www.cacm.org|VisionWinter201311
ThePolicyManualincludesthemission
statementofthecommunity:“Preservation
andEnhancementofRanchoMissionViejo
asaPremierIntergenerationalMaster-Planned
Communitywithresultsmaximizingvaluefor
residents.”Allendstatementsandotherpolicies
arebuiltaroundthemissionofthecorporation.
Thedocumentsarea“livingdocument”that
canbeamendedasnecessarytofurtherdefine
ends,limitations,delegationandprocessand
areintendedtoevolveasthecommunitygrows
anditsneedsanddesiresarebetterdefined.
GoalsandChallengesforthe
RoadAhead
WhileCharneyconsultswithanumber
ofindustries,hefeelsthePGmodelisagreat
fitforthecommoninterest
development(CID)industry
becausetheemphasisis
ongoodgovernance–not
insertingpersonalpositions
intoday-to-dayoperations.
Asaleadconsultantwith
RanchoMissionViejo,he
iscommittedtohelping
theassociationdefinethe
authorityandaccountability
ofbothboardandstaff
andsaystherearethree
characteristicsofeffective
delegation:
1.Clarityofexpectations
2.Clarityofwhoisassignedwhattasks
(delegationshouldincluderesponsibility
and commensurateauthority)
3.Verificationthattheexpectationswere
met,asassigned
Thegoalofthisprocessistoinspire
professionalstoprovideexcellentclientservices,
maketheirboardshappy,andtohaveaclear
understandingoftheirrole.
GenaroandBeebebelievethebiggest
challengewillbeeducatingandassimilating
homeownerboardmemberswhomaybe
morecomfortablewiththeusualapproachto
governance.However,TheRanchandBeebe
areconfidentthatongoingeducationforhomeowners,boardmembersandstaff
willbeinstrumentalinsuccessfullyimplementingaPGmodel.Thefactthat
membersarecomingintoacommunitythatisalreadystructuredunderPG
shouldalsohelpmakeforasmoothtransition.
Fromtheoutsidelookingin,bringingthisconcepttolifewillserveasan
exampleforexistingandfuturedevelopmentstowatchandemulate.This
governanceapproachwillundoubtedlyplacethenewcommunityofRancho
MissionViejounderahighlevelofscrutinynotonlyfromthemembership,
butcommunityassociationmanagementprofessionalsandforwardthinking
boardmembersthroughoutthecountry…Nopressureguys!Goodluck,and
keepusupdated.
VickiMacHale,CCAM,istheExecutiveDirectorofARKManagement,asubsidiaryofStos
RobinsonCompanies,inCardiffbytheSea.
ArticlecontributionswerealsomadebyKayLadner,CCAM,OnsiteManagerwithDesert
ResortManagementinPalmDesert.
ThePGmodelis
agreatfitforthe
commoninterest
development
industrybecause
theemphasis
isongood
governance.