Dear Reader:
The following is an abridged version of the standardized “Annual Statement of Budget Policies and Procedures” that was recently distributed to every member of the Association. Detailed information concerning The Association insurance policies, Reserve Fund projections, and the 2014 Operating Budget are privileged information, and as such, are unavailable on the web site.
Members may contact the Building Manager for further information concerning these topics.
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Annual Statement of Budget Policies and Procedures
29 November, 2013
The California Civil Code statute numbering system will change in 2014. If you have any questions concerning the location of the statute codes listed below, please contact our Manager, Steve Bennett.
1. DELINQUENCY POLICY:
Assessments are due on the first (1st) day of each month and delinquent if not received by the fifteenth. Delinquent assessments will charged a late fee of 10% of the delinquent assessment. Owed assessment amounts that total $1,800.00 or greater will result in a lien being filed against the condominium by the Association. The lien shall include all delinquent assessments, lien preparation fees, late charges, interest at 10% per annum, filing fees, and attorney's fees. The lien so provided may be enforced by sale by the Association, it's attorneys, or other such person authorized to make the sale after failure of the owner to pay such assessment in accordance with it's terms; such sale to be conducted in accordance with the provisions of Sections 2924, 2924B and 2924C of the California Civil Code applicable to the exercise of powers of sale in mortgages and deeds of trust, or in any other matter permitted by law. (First Restated Supplemental Declaration of Covenants, Conditions and Restrictions Article 7, Section 7.12, page 20)
Please be aware that the Association will not be sending you a bill every month and that it is your responsibility to make timely payments, as the delinquency policy will be strictly enforced. Please make your assessment check payable to C.S.C.A #10 and send it to the Association’s office. The Association is able to automatically debit your bank account for assessment payments. Please contact the Manager for further information on this payment option.
2. DISPUTE RESOLUTION AND ENFORCEMENT DISCIPLINE AND COST REIMBURSEMENT - Alternative Dispute Resolution Summary of Civil Code 5850-5965
Sections 1369.510 to 1369.590 of the Civil Code require that before owners and associations file lawsuits against each other for declaratory relief or injunctive relief in connection with a claim for money damages under $5,000 or for enforcing the associations governing documents, the filing party shall endeavor to submit the dispute to alternative dispute resolution (ADR). Forms of ADR include mediation, negotiation, and binding or nonbinding arbitration. This provision does not apply to the filing of cross-complaints.
The ADR process is initiated by one party serving a request for resolution upon the other parties to the dispute. The request must include (i) a brief description of the dispute, (ii) a request for ADR, (iii) a notice that a response must be received within thirty (30) days or it will be deemed rejected, and (iv) a copy of Civil Code Sections 1369.510 to 1369.590.
If the individual receiving the request agrees to ADR, the process must be completed within ninety (90) days unless otherwise extended by agreement. The cost of ADR is to be paid by the participating parties. If a civil suit is filed, the filing party must submit to the court a certificate of compliance indicating the party has complied with the requirements of Sections 1369.510 to 1369.590. Failing to do so would be grounds for challenging the lawsuit.
Although the prevailing party is entitled to reasonable attorney’s fees and costs, the court may consider a party’s refusal to participate in ADR when making the award.
A description of the Association’s internal dispute resolution process, as required by Civil Code Section 1363.850, is attached.
NOTE: Failure by any member of the association to comply with the alternative dispute resolution requirements of Civil Code 1369.520 may result in the loss of your rights to sue the association or another member of the association regarding enforcement of the governing documents or the applicable law.
Internal Dispute Resolution Procedure Summary of Civil Code Section 1363.850
1. This policy applies to a dispute between the association and a member involving their rights, duties, or liabilities under the Davis-Stirling Act, under the provisions of the Corporations Code relating to mutual benefit corporations (commencing with Corporations Code 7110), or under the associations governing documents.
2. Either party to a dispute within the scope of this article may invoke the following procedure:
a. The party may request the other party to meet and confer in an effort to resolve the dispute. The request shall be in writing.
b. A member of the association may refuse a request to meet and confer. The association may not refuse a request to meet and confer.
c. The association's board of directors shall designate a member of the board to meet and confer.
d. The parties shall meet promptly at a mutually convenient time and place, explain their positions to each other, and confer in good faith in an effort to resolve the dispute.
e. A resolution of the dispute agreed to by the parties shall be memorialized in writing and signed by the parties, including the board's designee on behalf of the association.
3. A member of the association will not be charged a fee to participate in the process.
4. Enforcement of the Governing Documents. The Board of Directors has the right to enforce the Association’s Governing Documents pursuant to the CC&R’s, Bylaws and other rules and regulations. This right includes requesting the violator to cease offending action, suspending the owner’s membership rights, assessing the owner for damages to the common areas, fining the violator and taking legal action against the violator (CC&R’s, Article II). The following procedure for member discipline is from the Association’s Second Restated Bylaws, Section 13.1.
Section 13.1. Procedure. At the time a violation is noted or reported, action will be as follows:
A. A first notice to correct the violation will be sent by the management. The notice will contain a description of the violation and instructions regarding response to the notice and correction of the violation. In this notice, the Owner will be notified that a fine may be imposed if the violation is not corrected.
B. If the violation continues, or if the response is otherwise unsatisfactory, the owner will receive a notice of a monetary fine hearing and be afforded an opportunity to appear before the Board or an appointed committee either by appearing personally or submitting written testimony. The hearing date shall be at least five (5) days before the effective date of the monetary penalty. The notice shall be delivered to the Owner personally or by first class or registered mail to the last address of the Owner shown on the Association’s records. The Board or committee shall give fair consideration to the Owner’s oral or written testimony in determining whether to impose a penalty.
C. If the violation continues or if the response is otherwise unsatisfactory, even after the imposition of a monetary penalty, the Board or its appointed committee may impose additional or continuing fines until such time as the matter is satisfactorily resolved.
D. If the violation continues further, the Board may refer the matter to the Association’s legal counsel. If a lawsuit is filed, the homeowner may be liable for the Association’s legal costs and fees.
Any monetary penalties imposed by the Board or its appointed committee may become a lien. Such lien shall not be enforceable by non-judicial foreclosure. Penalties shall be payable in United States currency and shall be decided on a case by case basis in the Board’s sole discretion.
Notwithstanding the foregoing, under circumstances involving conduct that constitutes (i) an immediate and unreasonable infringement of, or threat to, the safety or quiet enjoyment of neighboring Owners; (ii) a traffic or fire hazard; (iii) a threat of material damage to, or destruction of, the Common area; or (iv) a violation of the Governing Documents that is of such a nature that there is no material question regarding the identity of the violator or whether a violation has occurred (i.e., delinquent assessment payment or parking violations), the Board or its agents may undertake immediate corrective or disciplinary action and conduct a hearing as soon thereafter as reasonably possible, if either (a) requested by the offending Owner within five (5) days following the Association’s actions, or (b) on its own initiative.
3. NOTICE ASSESSMENTS AND FORECLOSURE:
This notice outlines some of the rights and responsibilities of owners of property in common interest developments and the associations that manage them. Please refer to the sections of the Civil Code indicated for further information. A portion of the information in this notice applies only to liens recorded on or after January 1, 2003. You may wish to consult a lawyer if you dispute an assessment.
ASSESSMENTS AND FORECLOSURE
Assessments become delinquent 15 days after they are due, unless the governing documents provide for a longer time. The failure to pay association assessments may result in the loss of an owner's property through foreclosure. Foreclosure may occur either as a result of a court action, known as judicial foreclosure or without court action, often referred to as nonjudicial foreclosure. For liens recorded on and after January 1, 2006, an association may not use judicial or nonjudicial foreclosure to enforce that lien if the amount of the delinquent assessments or dues, exclusive of any accelerated assessments, late charges, fees, attorney's fees, interest, and costs of collection, is less than one thousand eight hundred dollars ($1,800). For delinquent assessments or dues in excess of one thousand eight hundred dollars ($1,800) or more than 12 months delinquent, an association may use judicial or nonjudicial foreclosure subject to the conditions set forth in Section 1367.4 of the Civil Code. When using judicial or nonjudicial foreclosure, the association records a lien on the owner's property. The owner's property may be sold to satisfy the lien if the amounts secured by the lien are not paid. (Sections 1366, 1367.1, and 1367.4 of the Civil Code)
In a judicial or nonjudicial foreclosure, the association may recover assessments, reasonable costs of collection, reasonable attorney's fees, late charges, and interest. The association may not use nonjudicial foreclosure to collect fines or penalties, except for costs to repair common areas damaged by a member or a member's guests, if the governing documents provide for this. (Sections 1366 and 1367.1 of the Civil Code)
The association must comply with the requirements of Section 1367.1 of the Civil Code when collecting delinquent assessments. If the association fails to follow these requirements, it may not record a lien on the owner's property until it has satisfied those requirements. Any additional costs that result from satisfying the requirements are the responsibility of the association. (Section 1367.1 of the Civil Code)
At least 30 days prior to recording a lien on an owner's separate interest, the association must provide the owner of record with certain documents by certified mail, including a description of its collection and lien enforcement procedures and the method of calculating the amount. It must also provide an itemized statement of the charges owed by the owner. An owner has a right to review the association's records to verify the debt. (Section 1367.1 of the Civil Code)
If a lien is recorded against an owner's property in error, the person who recorded the lien is required to record a lien release within 21 days, and to provide an owner certain documents in this regard. (Section 1367.1 of the Civil Code)
The collection practices of the association may be governed by state and federal laws regarding fair debt collection. Penalties can be imposed for debt collection practices that violate these laws.
PAYMENTS
When an owner makes a payment, he or she may request a receipt, and the association is required to provide it. On the receipt, the association must indicate the date of payment and the person who received it. The association must inform owners of a mailing address for overnight payments. (Section 1367.1 of the Civil Code)
An owner may dispute an assessment debt by submitting a written request for dispute resolution to the association as set forth in Article 5 (commencing with Section 1368.810) of Chapter 4 of Title 6 of Division 2 of the Civil Code. In addition, an association may not initiate a foreclosure without participating in alternative dispute resolution with a neutral third party as set forth in Article 2 (commencing with Section 1369.510) of Chapter 7 of Title 6 of Division 2 of the Civil Code, if so requested by the owner. Binding arbitration shall not be available if the association intends to initiate a judicial foreclosure.
An owner is not liable for charges, interest, and costs of collection, if it is established that the assessment was paid properly on time. (Section 1367.1 of the Civil Code)
MEETINGS AND PAYMENT PLANS
An owner of a separate interest that is not a timeshare may request the association to consider a payment plan to satisfy a delinquent assessment. The association must inform owners of the standards for payment plans, if any exist. (Section 1367.1 of the Civil Code)
The board of directors must meet with an owner who makes a proper written request for a meeting to discuss a payment plan when the owner has received a notice of a delinquent assessment. These payment plans must conform with the payment plan standards of the association, if they exist. (Section 1367.1 of the Civil Code)
4. UNIT ARCHITECTRUAL ALTERATIONS and PROCEDURES (Remodeling)
The following information is excerpted from the current La Princesa Rules and Regulations for Remodeling. If you require a complete set of remodeling rules, please obtain one from the Building Manager.
The Association defines remodeling to be any structural modification to the interior of a Unit, including, but not limited to movement, relocation construction, or removal of Unit walls (window walls included), doors, bathrooms, bathroom construction, or removal of Unit walls, doors, bathrooms, bathroom facilities, kitchen, kitchen facilities, balconies, balcony enclosures, or any other room or fixture other than wall coverings, or any installation of hard surface flooring (underlayment required).
Procedures Used to Review Architectural Applications:
No unit may be remodeled without complying with all of the following:
Written permission from the Association must precede Unit remodeling. Said application must be personally delivered to the Association manager or as otherwise designated by the Board of Directors prior to any Unit remodeling.
Oral or non-written applications for permission to remodel a Unit made to the manager, any individual Member of the Association Board of Directors, or at a regularly scheduled Board of Directors meeting do not constitute an application for permission under these Restated Supplemental CC&Rs. Any response to oral or non-written applications for permission to remodel a Unit may not be relied upon as the basis for remodeling a Unit.
Any written application for permission for remodeling may be conditioned upon the applicant obtaining and providing to the Board of Directors; City of Coronado or other required building and fire Marshal permits or approvals for the proposed remodel; and a refundable deposit in an amount determined by the Board to be held by the Association to secure cleaning or repairs of Common Areas made necessary by the proposed remodel.
The deposit amount required by the Board of Directors is $1,000.00. Of this deposit, $900.00 shall be refundable to the contractor / homeowner, upon request, at the completion of the remodel. This deposit will be replenished if the Association finds it necessary to bill the contractor / homeowner for any expenses incurred. The Association reserves the right to bill the deposit at the rate of Twenty-Five Dollars ($25.00) per hour for any cleanup costs.
All written application for permission for remodeling shall be delivered to the La Princesa Tower Remodeling Committee or as otherwise directed by the Board of Directors for review and comment before submission to the Association Board of Directors for review.
Written application along with any plans or drawings may be reviewed by a consulting architect, retained by the Board for this purpose. The architect will make a written review to the Board; and be available for inspections of the unit during remodeling, and at the conclusion of the remodel. The owner or applicant to be responsible for all fees incurred by this service.
Fifteen (15) days after receipt of a written application for permission from the Association Board of Directors to remodel a Unit, the Association shall notify the Owner or applicant of the date, time and place the Association Board of Directors will meet to consider the application. The Association Board of Directors reserves the right to postpone its consideration of a matter in order to conduct additional studies or to seek the advice of outside consultants. The Board must render a decision on an application within ninety (90) days of receipt of the application. If the Board does not render a decision within ninety days, the plan will be deemed approved.
The Association Board of Directors shall provide a written decision to an application to remodel a Unit. Any verbal representations regarding approval or non-approval of a remodel application shall be of no effect and may not be reasonably relied upon by a Unit Owner or resident applying for permission to remodel a Unit. If approval is denied, the written decision shall describe the specific reasons for denial.
The applicant or any concerned Unit Owner or resident may appeal a Board of Directors approval or denial of a Unit remodel application by submitting the appeal in writing to the Board of Directors, with a copy to the manager, within thirty (30) days after the Board of Directors provides their written approval or non-approval to the remodel application. Within sixty (60) days after receipt of a written appeal, the Association Board of Directors shall reconsider the application reply. Within fifteen (15) days after receipt of an appeal, the manager shall notify the appellant of the date, time and place the Board of Directors will meet to consider the appeal. The remodel applicant will also be so notified.
Architectural Review Committee. The Board may appoint an Architectural Review Committee (“ARC”) which must consist of at least one (1) Member, who may be a Director. If no ARC is appointed, the Board shall be the ARC. All references to the ARC are to the ARC if it exists, or otherwise to the Board. Members of the ARC may not receive any compensation for services rendered. The ARC shall consider and act upon all proposals submitted in accordance with the Governing Documents. Approval of the ARC must be granted by majority decision of
the Members of the ARC, and reviewed and approved by a majority of the Board. No approval is final without approval by the Board of Directors.
The ARC should approve or disapprove plans submitted to it within 60 days of receipt. If the ARC fails to approve plans within 60 days, upon demand the applicant is entitled to hearing at the next regularly scheduled Board meeting to discuss the plans.
Once plans have been approved by the ARC, no material modifications may be made to the approved plans and no subsequent alteration, relocation, or addition may be made without a separate written approval by the ARC.
Appeal: Any decision of the ARC may be appealed by submission of a written request for review to the Board, within 30 days of receipt of the decision of the ARC. The Board must make a final decision by the date of the second regularly scheduled Board meeting following receipt of the appeal.
Variances: The ARC may allow reasonable variances with respect to this Article or any restrictions specified in the Governing Documents in order to overcome practical difficulties, and to avoid unnecessary hardships, provided that the following conditions are met:
If a variance will necessitate deviation from or modification of a use restriction that would otherwise apply under these CC&Rs, the ARC must conduct a hearing on the proposed variance after giving at least 30 days' prior written notice to the Board and to all Owners in the building where the Unit is located, and in buildings immediately adjacent to the building in which the Unit is located. The Owners receiving notice of the proposed variance will have 30 days to submit to the Board or ARC written comments or objections with respect to the variance. No decision may be made with respect to the proposed variance until the 30-day comment period has expired.
In order to grant a variance, the ARC must make a good faith determination that:
The variance will not constitute a material deviation from the overall plan and scheme of development within the Development or from any restriction contained in the Governing Documents, and that the proposal allows the objective of the violated requirements to be substantially achieved despite noncompliance; and
The variance relates to a requirement or restriction that it is unnecessary or burdensome under the circumstances; and
The variance, if granted, will not result in a material detriment, or create an unreasonable nuisance with respect to any other Unit, the Common Area, Residents, Guests, or any part of the Development.
No Waiver Based Upon Prior Approval. Approval by the ARC of any other matter requiring the approval of the ARC may not be deemed to constitute a waiver of the right to withhold approval of the same or a similar matter subsequently submitted for approval.
All proposed remodels must be in strict compliance with the Governing Documents and any applicable federal, state or local laws or regulations, including, but not limited to, the City of Coronado municipal law and the Uniform Building Code.
An applicant Unit Owner or Unit resident who remodels a Unit without written permission from the Board of Directors must immediately remove or be financially responsible for the removal of said remodeling.
An approved remodel must be completed, and all remodel construction activity concluded, within one hundred eighty (180) days from the date the Board of Directors approves a remodel unless the time is extended in writing by the Board. Remodels not completed in a timely manner shall be subject to fines until the remodel is completed and accepted by the HOA. The fines shall be determined by the Board at its sole discretion. Any extension of the 180 day limit must be approved by the Board of Directors. Remodels that go beyond the 180 day limit without written approval of the Board may face a penalty of $25.00 per day for any extra day required to finish the job.
The Association Board of Directors or their authorized representative shall have the right to inspect a Unit being remodeled one time per week or as often as deemed appropriate under the circumstances, and at the completion of the remodel the Association shall have the right to inspect the Unit to ensure compliance with all applicable requirements, the Owner’s approved application, and the Governing Documents. At the time of completion of the work, the Owner must submit a Notice of Completion to the HOA and the HOA shall do a final inspection and notify the Owner in writing as to whether the remodel is in compliance.
Additional kitchens, bathrooms or rooms may not be added to a Unit. Unit kitchens and bathrooms may not be relocated within the Unit. Additional waste lines may not be added to an existing main waste line in a Unit. No structural modification or alterations in a Unit are allowed that result in the creation of an additional bedroom or sleeping space in addition to the bedrooms that appear on the original Condominium Plan recorded in the Office of the County Recorder of San Diego County as File/Page No. 78-007400.
Any hard surface flooring in a Unit must rest upon an approved flooring sub-system that complies with the Uniform Building Code. In addition to the hard surface flooring, other permissible floor coverings in a Unit are carpet over approved pad, or cushion-backed floor vinyl only.
The remodel applicant agrees to indemnify and hold harmless the Association, its Board of Directors, La Princesa Tower Remodeling Committee and the Association manager and for any liability caused by a discharge of any material or substance, including hazardous material, in violation of California or Federal law. Unit smoke detectors must be protected from airborne contaminants during any approved remodeling.
Jacuzzi whirlpool bathtubs will not be permitted in a Unit due to noise transmission and vibration.
5. ASBESTOS NOTIFICATION DECLARATION
Provisions in the California Health & Safety code now require notification to residents and employees of the known presence of asbestos in any structure built prior to 1979. There is no known presence of asbestos in La Princesa. The Association retained a certified inspection firm, Design for Health, Inc. that collected random samples in areas of the building on 1 December, 1989. There was zero evidence of asbestos discovered in their investigation. A copy of this finding may be obtained from the Manager.
6. INSURANCE DISCLOSURE STATEMENT:
As of January 1, 1995, Civil Code Section 1365.9 requires that community associations of one-hundred (100) or more units carry a minimum of $3,000,000 in general liability and $1,000,000 in directors and officers liability insurance. In addition to this, all community associations, upon the issuance or renewal of insurance, but no less than annually, shall notify its homeowners as to the amount and type of insurance carried by the association accompanied by statements to the effect that the association is or is not in compliance with Civil Code Section 1365.9 and that if the association is in compliance that owners may be individually liable for only their proportional share of the assessments levied to pay the amount of any judgment which exceeds the association’s insurance. If the association does not comply with Civil Code Section 1365.9 owners may be individually liable for the entire amount of a judgment.
This summary of the association’s policies of Insurance provides only certain information, as required by subdivision (e) of Section 1365 of the Civil Code, and should not be considered a substitute for the complete policy terms and conditions contained in the actual policies of insurance. Any association member may upon request and provision of reasonable notice, review the association’s Insurance policies and, upon request and payment of reasonable duplication charges, obtain copies of those policies. Although the association maintains the policies of insurance specified in this summary, the association’s policies of insurance may not cover your property, including personal property or, real property Improvements to or around your dwelling. Even if a loss is covered, you may nevertheless be responsible for paying all or a portion of any deductible that applies. Association members should consult with their individual insurance broker or agent for appropriate additional coverage.
The Association has elected not to purchase additional insurance coverage for earthquake damage to the common areas and structure. Such hazard insurance is not required under the current Civil Code. This information should be provided by you to your insurance carrier when purchasing an individual policy covering your condominium.
THE PERSON TO CONTACT IF YOU HAVE ANY QUESTIONS REGARDING THE ABOVE POLICIES IS ARTHUR HOPKINS FROM THE MICHAEL ABDOU INSURANCE AGENCY, INC., AT (619) 293-7779. CERTIFICATES OF INSURANCE MAY BE OBTAINED FROM ARTHUR HOPKINS, AT THE MICHAEL ABDOU INSURANCE AGENCY, INC. BY FAX AT (619) 298-7523, OR VIA E-MAIL AT certs@abdouinsurance.com. THE MAILING ADDRESS FOR THE MICHAEL ABDOU INSURANCE AGENCY, INC. IS 7850 MISSION CENTER CT., STE 103, SAN DIEGO, CA 92108-1323.
The insurance levels currently being maintained by this Association are above the lawfully required minimums of California Civil Code Section 1365.9.
The Association's governing documents (CC&R's Section 12.4) require that every Owner maintain property insurance with respect to the interior and personal contents of his or her Unit, and any other item that the Association is not obligated to maintain or repair. In addition, any improvements made by an Owner within his or Her unit or, where permitted, on his or her Exclusive Use Common Area shall be separately insured by the Owner, but the insurance is to be limited to the type and nature of coverage commonly known as "Tenant Improvements." However, policies obtained by an Owner or Resident shall include a waiver of subrogation clause acceptable to the Board and to any First Mortgagee.
The Association's governing documents (CC&R's Section 12.5) also make it mandatory that each Owner maintain insurance for the contents in their Unit and any other item which the Association is not obligated to maintain or repair, including but not limited to, the insurance proposed in Article XII. Any such policies shall include a waiver of subrogation clause acceptable to the Board of Directors and to any first Mortgagee.
7. POLICY FOR OBTAINING MINUTES TO BOARD MEETINGS:
As required by California Civil Code Section 1363.05 d, the minutes to any meeting of the Board of Directors with the exception of executive sessions, shall be available to members within 30 days of the end of the meeting and will be distributed to any homeowner upon request. As a member of the Association you have the right to receive Minutes of the Association's Board of Directors meetings. Please contact our Manager, Steve Bennett, in his office at La Princesa Tower or you may call him at (619) 435-4173.
8. ANNUAL FINANCIAL DISCLOSURE STATEMENT:
As a member of the Association you have the right to receive a copy of the Association's annual audit of the financial records. Please contact the Manager, Steve Bennett, in his office at La Princesa Tower or you may call him at 619-435-4173.
9. SECURITY DISCLAIMER:
It is the hope of the Association that our security systems provide some deterrence to crime. However, no matter what steps we take, the Association can never be completely safe and secure. For example, it is possible for someone to enter the property under false pretenses to commit crimes, for residents to commit crimes against their own neighbors, for guests of residents to commit crimes, and for employees to commit crimes. As a result, the Association is not and can never be free of crime and we cannot guarantee your safety or security. Accordingly, you should NOT rely on the Association to protect you from loss or harm. Instead, you should provide for your own security by taking common sense precautions such as carrying insurance against loss; keeping your doors locked; refusing to open your door to strangers; asking workmen for identification; installing a security system; locking your car; etc.
10. NOTICE OF SPECIAL ASSESSMENT:
A member approved special assessment of $800,000 will be collected in 2 equal payments, according to unit fractional interest, in fiscal year 2014. The first assessment due date is 15 January, 2014. The second assessment due date is 15 June, 2014. All assessments are payable on the dates indicated, and considered delinquent 15 days after the due dates.
11. RESERVE CALCULATION STATEMENT, WITH ATTACHED RESERVE SUMMARY:
The Board uses the following procedure to calculate and establish the reserves used to defray the future repair, maintenance or addition to the major components for which the Association is responsible.
A. A list of major components is established.
B. The expected life for each major component is established.
C. The replacement or repair date for each major component is established.
D. The current year cost is established for each major component.
E. The current year cost is divided by the expected life of the major component.
F. The cost per year for each major component is added together.
G. The total cost per year is the base figure for each year's budgeted reserve expense.
This procedure, and the list of major components, is further explained in the attached Reserve Summary statement. Upon request, members may obtain a copy of the latest, full reserve study plan. Please contact the Manager, Steve Bennett, in his office at La Princesa Tower or you may call him at (619)-435-4173.
