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SOLERA DIAMOND VALLEY | NOVEMBER 2018 5 By The Board of Directors As you know, the Association is currently holding an election for new Board members. As a homeowner and association member, you should have received your ballot in the mail. (If you have not received your ballot, please contact the management office.) Certain circumstances have made this election somewhat unusual. The Board, therefore, is providing this article in the interest of transparency and so that you, as an association member, will understand the Board's decisions regarding this election. First, it is important to know that the Board had made its decisions on the advice of the Association's legal counsel. While there are two open seats on the Board, there are only two declared candidates for those seats. The argument can be made that we therefore do not need to hold an election; those two candidates can simply assume those two seats. However, our Association governing documents [and California law] require us to hold an election; we are therefore doing so. The Board considered hiring an outside firm to conduct the election and serve as Inspectors of Election. Some associations do this to ensure impartiality, and generally this Board believes this should be done; however, again, having only two candidates argues against such a decision. The use of an outside election firm results in costs to the association that in this case do not seem to be justified. Our management company will therefore hold the election and resident volunteers will serve as Inspectors of Election. These residents have been vetted to ensure they meet the legal standard to serve. In future elections, however, if there are more candidates than there are open seats, this Board believes the expense of using an independent, outside election firm is justified. Last, the two open seats are "Class C" seats. This means they are not subject to election by the association members, but are in fact appointed by the developer, Pulte. This would argue that Pulte could simply appoint the two candidates to the two open seats, and the Association could avoid an election entirely. However, according to our Pulte representative on the Board, the company's policy is to "follow the will of the residents" – meaning that as in past elections Pulte will appoint to its Class C seats whichever candidates get the most votes. We are therefore proceeding with the election, and the Board encourages all association members to return their ballots in a timely manner. And please join us in the Lodge for our Annual Meeting of Members at 10 am on Thursday, November 8. Thank you for your continued support. What You Should Know About the Current Election HOA & Board Priorities By Tommy Carpenter Here's an excellent description of the priorities of an HOA and its Board of Directors written by an expert on the subject, Kelly G. Richardson, Esq., a member of Community Association Lawyers. There are four basic priorities that must be balanced to produce a successful and harmonious community. The four interests to be balanced are the association's Corporate, Real Estate, Financial and Community priorities. Each is a critically important area of emphasis for a healthy community, and the neglect or overemphasis of one of these priorities may lead to major association problems and conflict. a. Corporate – HOAs are a legal entity and are governed by legal documents such as the CC&R's and Bylaws. Boards must obey laws and the governing documents and observe the corporate process. b. Real Estate – HOAs are real estate developments, and their boards must act to preserve, protect and maintain the common area and its architectural theme. Buildings and other common elements must be repaired and maintained. c. Financial – HOAs collect money from the owners and then spend it to benefit the association community. Money must be collected diligently and be spent wisely. Budgets, bids and bills are part of the "bottom line" in the association's financial world. d. Community – HOAs are made up of people who chose to live in a way that trades some independence for the benefits of cooperatively sharing some control with one's neighbors. The community interest attends to the fact that the members are not just stakeholders or owners but neighbors, and boards must promote the peacefulness of the community. The cause of many HOA struggles can often reveal an imbalance between these four central facets of association operation, as certain of these priorities may have been overemphasized or neglected. Excellent association living depends upon balancing the competing priorities, making sure the association obeys the law and follows its governing documents; property in the community is well-maintained and presentable; assessment funds are carefully collected and carefully spent; and the community is a pleasant place to live, with residents feeling they are considered and valued by their association. RV Parking ..........................3 Emergency Vehicles noted in HOA .....................................3 Property Damage/ Theft/ Trespass/Alarms ..................2 Landscape .........................12 Tree Trimming ..................15 Unapproved Architectural ...2 Paint ....................................1 Yard Décor ...........................1 Satellite Dish/Solar .............1 Light Post Out ......................6 Other ...................................5 The numbers presented are new incidents reported by Patrol or violations noted in the Association for the month of September. September 2018 Monthly Incident and Violation Report

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