documents review committee 1. council of unit owners – rock creek gardens condominium the...

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PROPOSED BYLAW AMENDMENTSDocuments Review Committee

2Council of Unit Owners – Rock Creek Gardens Condominium

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


GOVERNING DOCUMENTS

DeclarationLegal document that establishes and defines the condominium, including percentage ownership and voting interests that apply to each unit

BylawsEstablishes broad legal basis for how the condominium is to be internally governed

Rules and RegulationsEstablish specific policies and procedures that implement the declaration and bylaws


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


COMMITTEE MEMBERSHIP

Kevin Upton2252 Washington Ave.

Sharon Brown2212 Washington Ave.

Linda Defendeifer2244 Washington Ave.

Kelli Serena (Board of Directors Liaison)2244 Washington Ave.


PRINCIPAL FINDINGS

Declaration and bylaws have not been updated since RCG was established, in 1980

Bylaws have not kept pace with changes in state laws

No systemic procedures for keeping documents up-to-date

Rules 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


COMMITTEE RECOMMENDATIONSDeveloped In Consultation With the RCG Legal Counsel

Declaration No 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


PROPOSED BYLAW AMENDMENTS

Total of 72 recommended amendments in four separate categories: Category A:Changes needed to achieve

compliance and consistency with state law

Category B:Administrative Changes Category C:Clarification and Simplification

Changes Category D:Property Management Changes


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


SIGNIFICANT CHANGES

Article IV Section 5 (Item No. 36) Allows for delivery of legal notices by electronic means to

consenting unit owners Article 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


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


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


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


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