QUAIL RIDGE RESIDENTIAL ASSOCIATION

VOTING PROCEDURES and ASSOCIATED RULES

Board Action: On February 16, 2006, the five-member Board of Directors of the Quail Ridge Residential Association, voted to consider adoption of the following Rules pursuant to California Civil Code, Sections 1363.03, 1363.04 and 1363.09. Five directors cast a unanimous yes vote (Flynn, Ryken, Parker, Patton and Staunton).

At the same time, the Board of Directors cast a unanimous vote to appoint the Quail Ridge Property Manager, assigned by the Quail Ridge Property Management Company, to act as voting “Inspector” as specified in the Code.

Preface: In the interest of brevity, primarily to encourage understanding, comprehension and compliance by Quail Ridge Homeowners, key elements of the referenced Civil Code have been extracted from the Code and are outlined below; in the event of inadvertent misinterpretation of the Code, precise wording of the Code will in all cases prevail (copies of the Code are available from our Quail Ridge Property Management Company or on-line).

Civil Code 1363.03

Intent: Any election within the Quail Ridge Residential Association regarding election of Homeowners to the board of Directors, assessments, and amendments to governing documents, will be held by secret ballot.

Voting to Elect Members of the Board of Directors: Any candidate for membership on the Board of Directors, or any Homeowner who advocates a point of view that is reasonably related to that election, is entitled to have access to Quail Ridge Newsletters for expressing that point of view, whether or not endorsed by the Board. The Association will not edit or redact any content from these communications, but may include a statement to the effect that the candidate or Homeowner, and not the Association, is responsible for content.

Prior to an election, the Board of Directors will specify, to the extent appropriate, applicable qualifications for Board membership; the Board will also affirm procedures for the nomination of candidates. No member will be denied the opportunity to nominate himself or herself for election to the Board of Directors.

Also, prior to an election, the Board of Directors will: specify qualifications for voting; reaffirm the voting power of each Homeowner; establish means to authenticate and validate proxies; and set the voting period for elections, including times when voting polls will open and close.

Inspector: The “Inspector” will perform all of the following duties:

· Determine the number of Homeowners entitled to vote and the voting power of each

· Determine authenticity, validity, and effect of proxies, if any

· Receive ballots

· Hear and  respond to challenges and questions arising out of or in connection with the right to vote

· Count and tabulate all votes

· Determine when the polls will close

· Determine the results of the election

· Perform any acts as may be proper to conduct the election with fairness to all Homeowners

Homeowner’s Proxy Voting Instructions:  When a proxy is issued, instructions that direct the manner and process by which the proxy holder is to cast the vote, will be set forth on a separate page that can be retained by the Homeowner.

Proxy Voting Methodology:  Not less than thirty (30) days prior to any election, the Quail Ridge Management Company’s Property Manager, acting in the capacity of voting Inspector, will forward to each Homeowner via first class mail, a ballot, two (2) envelopes, and instructions outlining the required process for returning the ballot. To preserve confidentiality, a voting Homeowner will not be identified by name or address or lot/parcel/unit number on the ballot itself. Specifics of this voting process are as follows:

· The completed ballot will not be signed by the Homeowner. The completed ballot will then be inserted into the first, unmarked envelope and sealed, which in turn will be inserted into a second envelope and sealed. In the upper left hand corner of the second envelope, the voting Homeowner will print and sign his or her name/address in order for the Inspector to verify voting eligibility. This second preaddressed envelope, containing the first sealed envelope and ballot, will then be mailed to the Inspector at our Quail Ridge Management Company. The Inspector will then tally responses based upon information shown on the second envelope, and then safely gather the unmarked, sealed first envelopes containing the ballot.

· The sealed first envelopes will at all times remain in the custody of the Inspector until the opening, counting, and tabulation process has been completed. No persons, including members of the Board of Directors, Homeowners, or the Quail Ridge Management Company, will open the first envelope or otherwise review any ballot prior to the time and place at which the first envelopes containing the ballots are opened, counted and tabulated.

· The sealed first envelopes (containing ballots) will be opened, counted and tabulated by the Inspector at a properly noticed open meeting of the Board of Directors. Homeowners and election candidates will be encouraged to witness the opening, counting and tabulation process. Custody of the ballots will then be transferred to the Association to be stored for not less than one year after the date of the election.

· Election results will be promptly reported by the Inspector to the Board of Directors. Such results will be recorded in the minutes of the meeting and will be available for review by Homeowners; within fifteen (15) days, the Board will publicize election results in the Quail Newsletter or by special mailing.

· In the event of a recount or other challenge to the election process, the Association will, upon written request, make the ballots available for review and inspection by Homeowners or their authorized representatives. Any recount will be conducted in such a manner that the confidentiality of the vote will be preserved.

Civil Code 1363.04

Intent: Any election conducted by the Quail Ridge Residential Association will conform to the following procedural guidelines to encourage proper and fair elections. Key elements of applicable Civil Code guidelines are as follows:

· The use of Association funds will not be permitted for “campaign purposes” in connection with the process of electing Homeowners to the Board of Directors, or any other Association voting activity. “Campaign purposes” includes: advocating the election or defeat of any candidate or advocating approval or disapproval of any Association issue requiring a vote of Homeowners.

· The use of Association funds will also not be permitted for “campaign purposes” (within 30-days of an election) to publish a candidate’s photograph or prominently feature a candidate’s name in an Association publication. However, this will not be considered a “campaign purpose” if the publication allows equal access to all candidates.

Civil Code 1363.09

Intent:    Any election conducted by the Quail Ridge Residential Association that purportedly fails to conform to the voting procedures outlined above may be subject to the following legal actions:

• A Homeowner may bring a civil action for declaratory relief or equitable relief for a perceived violation of this Civil Code. If filed within one year of the date the cause of action accrues, such an action may include, injunctive relief, restitution or a combination thereof. In the event a court finds that this Civil Code was not followed, the results of the election may be voided.
• A Homeowner who prevails in a civil action will be entitled to reasonable attorney’s fees and court costs; also, the court may impose a civil penalty of up to $500 for each violation, except that each violation will be subject to only one penalty if the violation affects each Homeowner equally. A prevailing Association will not recover any costs, unless the court finds the action to be frivolous, unreasonable or without foundation.
• A cause of action with respect to access to Association resources by a Board candidate or by a Homeowner advocating a point of view, or the receipt of a voting ballot, or the counting/tabulation of ballots, or the reporting of election results, or access to ballots for inspection/review, may be brought in Small Claims Court if the demand does not exceed the jurisdiction of that court.

-  -  -  -  -  -  -  -  -  -  -