The Northridge Fact-Finding Committee

1
The Northridge Fact-Finding Committee

• Second Presentation to the property owners of
  Northridge
• April 11, 2007

2
Norms

• Assume positive intent.
• Talk about issues, not people.
• Allow for all voices to be heard.
• Allow all points of view to be respectfully
  heard.
• Disagree respectfully.

3
Agenda

• Goals
• Address questions from last meeting
• Presentation voting mechanism
• Perspectives from the community
• Next Steps

4
Goals for this meeting

• Address questions from last time
• Explain voting mechanism
• Allow members of the community to voice their
  opinions / concerns

5
Who We Are

• Michelle Eubank, Teacher
• Tim Perkins, Banker
• Dave Hauger, Air Traffic Controller
• Janie Perkins, Realtor
• Don Blake, Engineering Manager

6
What we heard from you (in no particular order)

• Many great questions.
• Check out SB 89/SB100.
• Please ensure a fair election.
• How do people who are opposed to an HOA get some
  say in who is elected to the board?
• Put a stamp on the ballot for usplease.
• Thanks for running a good (and civil) meeting!

7
Questions from last time
Sources on the following pages are identified as
follows cov Northridge Covenants Bylaws Northr
idge By Laws SBxx Senate Bill 89 or
100 CCIOA CCIOA documentation FFC Fact
Finding Committee Opinion
8
If there were an HOA in place and people did not
pay their assessments, who picks up the slack?

• The HOA would place a lien on the property of the
  non-paying property owner. The assessment would
  be collected at time of sale. CCIOA, Cov
• Interest would accrue at a max rate of 8/year
  covenants an HOA could recover legal costs on
  collection of unpaid assessments CCIOA.
• In the mean time, the HOA would have to live
  within its means or increase assessments the
  following year to cover costs. FFC

9
Is there a cap on HOA dues?

• There is no lifetime cap on HOA dues.
• The first year of the HOA the assessment cannot
  be more than 100 cov.
• The assessment can increase up to 20 each year
  after that with a majority vote of the Board of
  Directors cov.
• Assessment increases greater than 20 require a
  majority vote of the members cov.

10
Define maintenance of the common areas

• Entrances watering mowing, weeding, trimming
  shrubs.
• Pocket park dependant on the final design, but
  to include watering, weeding, mowing, trimming.
• Ditch and trails keeping down weeds on trails,
  keeping water-flowing in the ditch.

FFC opinion
11
An HOA cant prevent liability we would pay for
a lawsuit anyway. If the HOA is sued, where do
they collect funds?

• The HOA can create a special assessment to pay
  for legal fees if it should be sued. The cost
  would be spread amongst each of the property
  owners in Northridge. CCIOA

12
Liability Clarification

• Liability is a concern with or without an HOA.
• Lawyers we spoke with told us that because the
  liability issue is so unclear, any lawsuit
  regarding the ditch would likely encompass every
  homeowner and the Town of Erie based on the Ditch
  Agreement. The outcome is not certain.
• With an HOA, Northridge assumes we are liable and
  the HOA purchases insurance. A lawsuit would
  likely go the HOA instead of individual property
  owners.
• With or Without an HOA, individuals decide for
  themselves whether or not to have liability
  coverage.

FFC opinion with lawyer input
13
Define projects and repairs earmarked for
Northridge.

• This group cannot define what those projects
  would be. It would be a negotiation between the
  HOA and the Town of Erie. Examples could
  include
• Installation of Pocket Park
• Install / repair culverts
• Paving trails
• Installing new entry signs
• Etc etc

FFC opinion
14
What are the requirements to be a Board member of
the HOA?

1. Must be a property owner in Northridge bylaws.
2. Must not have any conflict of interest SB100.

15
Questions regarding the land given to the Town of
Erie

• Result of the Settlement Agreement dated 19 Mar
  02, detailed in section 4.
• Size of parcel 52 Ac
• Location of parcel
• Worth need an appraisal
• Would town be willing to transfer to Northridge
  HOA No

16
Questions the FFC cant answer

• Why wont the Town of Erie put their promises in
  writing
• What is the exact (size and) value of the land
  that was given to the town by MN as part of the
  settlement agreement
• If nothing is done, what then?

17
Voting Mechanism
18
Voting clarifications

• After your inputs and our review and discussion,
  the team identified a shortcoming in the proposal
  identified in the last meeting

19
Originally presented

• According the Northridge Covenants it takes votes
  by 50 1 (96) property owners to elect a Board
  of Directors when the election is held by mail.
• The Board can consist of 3-7 members - must be an
  odd number

needs clarification
20
Originally Presented

• Any ballot returned with a vote for one to seven
  nominees will be counted towards the 96 required
  to be considered a valid election.
• If 96 property owners do not return a ballot with
  a vote cast, the election is not valid and a
  Board of Directors is not elected.
• Ballots postmarked after the cut-off date will
  not be considered valid.

needs clarification
21
Originally Presented

• The Committee will prepare a ballot and mail one
  to each property owner.
• Each property owner has the opportunity to cast
  one ballot by mail and can elect
• To cast a vote for nominees for the Board of
  Directors.
• To not return the ballot.

needs clarification
22
Bylaws Section 2
23
Bylaws Section 2

• Each member gets one vote (one vote per property)
  
• Voting at elections or on other matters shall be
  at the annual meeting or at special meetings
  unless the BOD determines that voting for
  election of the BOD may be conducted by mail
• Any action voted on by the members is passed with
  a majority
• When elections are conducted by mail, votes must
  be cast by at least a majority of all eligible
  members

24
Voting mechanism

• Break out the question into 2 separate votes
• FIRST Vote for BOD for HOA (yes or no)
• SECOND If above vote yes, vote for directors
  in a separate election
• Allows for property owners who are not in favor
  of an HOA to have a say in who is on the board
  (should the first vote pass)
• For election to be considered valid, a majority
  of eligible voters must return a vote ( 501
  96)
• The majority of valid ballots received sets the
  direction for Northridge

25
The Ballot

• Anonymity is the goal - Secret ballot election
  SB89
• Ballots will be serialized in a random fashion
• Serials will be recorded for authenticity checks
• Ballots and instructions then stuffed into blank
  envelopes
• Envelopes will be labeled with addresses
• Ballots will not be able to be traced to an
  address or name SB89

26
The Ballot

• Ballots will be invalid if
• Serial numbers are received that were not issued
• Multiple ballots with the same serial number are
  received none of the ballots for that serial
  number will be counted
• Both YES and NO are checked
• Neither YES nor NO are checked
• Ballots are postmarked after the cut-off date
  (May 14 postage goes up)

27
The Ballot

• Record your ballot Serial number if you wish to
  confirm your votes accuracy when results are
  posted on the website

28
THE VOTE a recap

• Hold an election for a BOD Yes or No
• 1 vote per property owner
• 96 valid ballots must be received for election to
  be valid
• Majority rules (50 of valid ballots 1)
• A neutral third party will tally the votes
• Volunteer committee to double-check the vote

29
Timeline
Date Event
April 12 Committee mails out ballots to property owners
May 14 Ballot submission deadline
May 21 Results e-mailed and posted on Northridge website
tbd Follow-up meeting should a majority of voters decide to elect a BOD for HOA
30
Community Perspectives
31
Community perspectives

• Anyone who would like to will have two minutes to
  speak.
• One speaker per household.
• Speakers sign up identifying themselves as in
  favor or against or neutral regarding
  reinstatement of the HOA.
• The committee will call people up to speak in a
  manner as to allow for balance in expression of
  opinions.
• No rebuttals or interruptions, please.
• Will end at 820 so we have time to clean up

32
Norms

• Assume positive intent.
• Talk about issues, not people.
• Allow for all voices to be heard.
• Allow all points of view to be respectfully
  heard.
• Disagree respectfully.

33
More Info

• Many documents pertinent to the Northridge
  community are available to view at the following
  web address
• www.geocities.com/northridge_erie

34
In conclusion

• Look for ballot in the mail
• VOTE
• Expect posting by 21 May
• Donations for mailings (ballots are pre-stamped)