Documents Review Committee 1 Background The Documents Review Committee was established by the Board of Directors in 2011 in response to continuing quality of life concerns expressed by residents that existing ID: 659283
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Proposed Bylaw Amendments
Documents Review Committee
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Background
The Documents Review Committee was established by the Board of Directors in 2011, in response to continuing quality of life concerns expressed by residents that existing
governing documents did not adequately address
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Governing Documents
Declaration
Legal document that establishes and defines the condominium, including percentage ownership and voting interests that apply to each unitBylaws
Establishes broad legal basis for how the condominium is to be internally governed
Rules and Regulations
Establish specific policies and procedures that implement the declaration and bylaws
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Documents Review Committee Charter
Conduct a detailed comprehensive review of all Rock Creek Gardens governing documents
Propose amendments to the declaration and bylaws as considered necessary and appropriate to achieve compliance and/or consistency with state law, and enable administrative modernization and efficiencies
Revise existing or draft new rules and regulations as considered necessary to implement the amended declaration and bylaws
Make the bylaws easier to understand:
Reorganize content to enable a more logical flow of subject matter
Rewrite sections as necessary to simplify language, eliminate “legalese” and unnecessarily obtuse verbiage, to the extent practical
Subdivide unnecessarily long and complex sections into subsections to enhance clarity
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Committee Membership
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Kevin Upton
2252 Washington Ave.
Sharon Brown
2212 Washington Ave.
Linda
Defendeifer
2244 Washington Ave.
Kelli Serena (Board of Directors Liaison)
2244 Washington Ave.Slide6
Principal findings
Declaration and bylaws have not been updated since RCG was established, in 1980
Bylaws have not kept pace with changes in state lawsNo systemic procedures for keeping documents up-to-dateRules and regulations not always consistent with the bylaws and have significant functional gaps, including—
No defined rulemaking process
No provisions for imposing sanctions on violators
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Committee recommendations
Developed In Consultation With the RCG Legal Counsel
DeclarationNo changes
Bylaws
Total of 72 proposed amendments
Rules and Regulations
Revise based on outcome of bylaw amendments ratification vote
Include new rules that define the rulemaking process and provide sanctions for violations
Establish a standing Rules Committee to monitor changes in the law, review bylaw or rules changes proposed by unit owners, and develop necessary proposed amendments
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Proposed bylaw amendments
Total of 72 recommended amendments in four separate categories:
Category A: Changes needed to achieve compliance and consistency with state lawCategory B: Administrative Changes
Category C: Clarification and Simplification Changes
Category D: Property Management Changes
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Significant Changes
Article IV Section 6 (Item No. 3)
Lowers Annual Meeting quorum from 40% of unit owners to 25%Article IV Section 8 (Item No. 5)
Lowers plurality requirement from 51% of all unit owners to simple majority of those present and voting
Article IV Section 9 (Item No. 6)
Allows casting of proxy votes by electronic means
New (Item No. 10)
Allows the Board to conduct closed executive sessions for specific purposes specified in the law
New (Item No. 18)
Authorizes the Council to foreclose on liens for unpaid assessments, as provided for in the law
Article IX Section 1 (Item No. 19)
Strengthens the residential nature of RCG by prohibiting
other-than-passive
home-based businesses as allowed by law
Article IX Section 2 (Item No. 20)
Requires use of a standard lease form that, among other things, makes tenants equally subject to provisions of the bylaws, and rules and regulations
Authorizes the Council to collect directly from tenants if the unit owner is delinquent in assessment payments, as allowed by law
Article XI Section 3 (Item No. 24)
Changes unit owner insurance provision from optional to mandatory, with a minimum coverage of $5,000
Article XVI Section 1 (Item No 29)
Lowers the plurality required for ratification of amendments from 75% to 66 2/3%, as provided for in the law
Category A: Compliance and Consistency with State Law
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Significant Changes
Article IV Section 5 (Item No. 36)
Allows for delivery of legal notices by electronic means to consenting unit ownersArticle IV Section 9 (Item No. 6)
Increases the number of proxy votes that can be submitted by a single unit owner from one to three
Article V Section 1 (Item No. 37)
Reduces the maximum number of Directors from 9 to 7 and requires Directors to be unit owners
Article X Section 7 (Item No. 46)
Increases the spending cap for improvements to the common elements from $25,000 to $50,000
Category B: Administrative Changes
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Significant Changes
No substantive changes to the existing bylaws in this category
Numerous non-substantive changes to 16 existing sections to simplify language and promote comprehension, as mandated by the committee charter
Category C: Clarification and Simplification Changes
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Significant Changes
Article IX Section 3 (Item 65)
Clarifies carpeting requirement to specify that this subsection applies to floor surfaces that are located directly above another unit (less kitchens, closets, and bathrooms)
Article IX Section 3(e) (Item 66)
Clarifies wording on numbers and types of pets permitted to reflect the 2011 community-wide vote of unit owners
Category D: Property Management Changes
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Summary
Our bylaws are antiquated. No updates since the community was established in 1980
Proposed amendments not only bring our bylaws into compliance with state law but also update and modernize the bylaws, to include:Provisions for electronic delivery of legal notices
Provisions for electronic casting of proxy votes
More efficient collection of delinquent accounts
Reinforcement and clarification of the residential nature of the community
Beyond modernization, ratification of the proposed amendments will make the bylaws significantly easier for unit owners to comprehend
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Next steps
VOTE!!!
Even changes needed to achieve compliance with state law require ratification by 66 2/3% of
ALL
of the unit owners (not just of votes cast)!
Because the plurality applies to all of the unit owners,
not voting or casting a blank ballot is the same thing as voting NO on all proposed amendments
Votes may be cast either—
In person,
at the Annual Meeting to be held on May 22, at the Rock Creek Forest Elementary school OR,
By proxy,
delivered to the Rock Creek Gardens Office, anytime in advance of the meeting
Review and update the rules and regulations based on the amended and restated bylaws
Publish a “Resident’s Handbook,” designed to explain, in plain English, how the community operates and to include a complete set of updated rules and regulations
Post the amended and restated bylaws, and the Resident’s Handbook to the Rock Creek Gardens website
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