2008, April

Red Bank Oaks

Vote by Mail

April 2009

Affirm the Legal Validity of the 2/3^rds Clause in the CC&Rs

SUMMARY:

The association does not have funds available for road maintenance this year. The roads have not been maintained for several years due to insufficient funds. As we investigate avenues for producing the funds necessary to maintain roads, the 2/3^rds clause under Article III, “Management,” para. 6 in the CC&Rs is again under scrutiny.

There is and has been contention that the original amendment to the CC&Rs, which required 2/3^rds of cattle-grazing revenue be set aside each year to extend electrical service to all parcels, was done so without majority representation/vote of the landowners as required by the CC&Rs. The meeting minutes from the July 21, 1981 special meeting do not identify how many landowners were present or represented at the special meeting. Nor do the meeting minutes document the actual votes (ayes, nays). There is also no record of proxies from the meeting.

At the April 25, 2009 meeting, the landowners declared that the 2/3^rds clause in the CC&Rs has questionable validity and requested a vote from all the landowners to affirm their desire to keep the 2/3^rds clause. If the clause is not affirmed by a majority of the landowners, or a majority vote is not obtained because landowners elect not to respond, then the association may retain an attorney and request a court direct the removal of the clause from the CC&Rs based on questionable validity and lack of support by the landowners.

The enclosed voting card is already stamped and addressed to Red Bank Oaks. You need only to:

1) Mark your vote

2) Sign your voting card

3) Drop the voting card in the mailbox

All votes should be received no later than September 15, 2009.

VOTING CARD:

I understand the validity of the 2/3^rds clause in the CC&Rs is being

challenged for legal sufficiency as there was no count of landowner votes

or record of proxies to validate the amendment that was made to the

CC&Rs in April 1982. For this reason, it is necessary to establish an

official record regarding the 2/3^rds clause. For the record:

(PLEASE CHOOSE ONLY ONE ACTION):

- I affirm that I want the 2/3^rds clause to remain in the CC&Rs.

- I want to remove the 2/3^rds clause from the CC&Rs.

PLEASE NOTE:

If you elect not to respond, the absence of your response will be

counted as having no preference.

All votes must be received no later than September 15, 2009.

_______________________	__________________________
Parcel Number(s)	Landowner Signature

RESULTS:

To establish an official record regarding the 2/3rds clause:

Total Valid Votes Received:	39
I affirm that I want the 2/3rds clause to remain in the CC&Rs:	15
I want to remove the 2/3rds clause from the CC&Rs:	24
Invalid:	1

Action to be Taken: There were not enough landowners casting a vote either way to affirm the CC&Rs. Henceforth, the association may elect to petition the Superior Court of Tehama County to direct the removal of the clause from the CC&Rs based on questionable validity and lack of support by the landowners in accordance with the Davis-Stirling Common Interest Development Act, Section 1356.

BREAKDOWN OF VOTES AND COMMENTS:

Affirm the 2/3rds Clause	Want to Remove the 2/3rds Clause	No Response	Comments
X
		X
	X
		X
	X
	X
		X
		X
X
X
X
	X
		X
X			Not enough info for me to vote to remove. What happens to the balance in the power fund?
		X
	X
		X
		X
		X
	X
X			No Signature
		X
X
	X
		X
	X
	X
		X
		X
	X
	X
X
		X
		X
X
X
		X
		X
		X
		X
X
	X
X
	X
	X
	X
	X
	X
	X
	X
	X
		X
	X
	X
		X
		X
		X
	X
		X
X
X
		X
		X
		X
		X
	X
		X
X
X

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Copyright © 2008 Red Bank Oaks Property Owners' Association Last modified: 02/21/09

Copyright © 2008 Red Bank Oaks Property Owners' Association
Last modified: 02/21/09