Annual Election Results 2023

Annual Election & Membership Meeting

March 8, 2023

(Inspector of Election Report Attached)

SECTION 1 – BOARD CANDIDATES

Number of Units: 85
Quorum Needed: 43
Ballots Cast: 63
Voided Ballots: 0

ELECTION RESULTS

Robert Citrano ‐ Incumbent 63 votes - Elected
Robert Kevane ‐ Incumbent 70 votes - Elected
Frank Kingery ‐ Incumbent 55 votes - Elected
Michael Nolan ‐ Incumbent 59 votes - Elected
Simon Levy - 55 votes - Elected
Stan Mestman - 2 votes - Not Elected

SECTION 2 – REVENUE RULING 70‐604

Voters approved the Bay Scene Board of Directors to roll over any excess funds at the end of the fiscal year to the following year’s budget to mitigate taxes in the case that the Association Board elects to process their financials and taxes per Form 1120. Should the Association utilize tax Form 1120H, this revenue ruling is not relative. The revenue ruling requires that this decision be made by the membership on an annual basis.

Vote: [61] Approved [1] Disapproved Result: Ruling Approved

PROPOSED AMENDMENTS TO CC&Rs

The Board is proposing to amend Section 4.8 and 5.3.3 of the CC&Rs to afford the board greater flexibility to structure a potential loan, special assessment, and construction contract in connection with the proposed window curtain wall replacement and structural repairs. The text of the proposed amendments is enclosed. Any loan and/or special assessment that is ultimately proposed by the Board will still require a separate vote of the owners for approval (the loan pursuant to Section 8.3 of the Bylaws and the special assessment pursuant to Section 4.6 of the CC&Rs). The proposed amendments to the CC&Rs require the approval of a “Majority of a Super Quorum of the Members” (as defined in the existing Bylaws), which means that as long as owners representing more than 50% of the membership cast votes, a majority of the votes actually cast must be cast in favor of the proposed amendments in order for the proposed amendments to be approved.

Vote:
[50] Approved
[12] Disapproved
Result: Passed

RETENTION OF EARTHQUAKE INSURANCE POLICY

Please designate below whether or not you wish for the Bay Scene Owner’s Association to renew the Bay Scene Earthquake Insurance policy with Farmers Insurance for the period from 15 June 2023 through 15 June 2024. To obtain this insurance, the Homeowner Association fees will need to increase to compensate for this additional cost. We are seeing substantial increases throughout California. The Earthquake Policy renewal will be presented to the Association in May 2023. The current Earthquake Insurance Policy with Farmers Insurance is for building coverage of $37,000,000 with a 20% deductible at an annual premium of $36,784.30.

Vote:
[47] Yes, renew the Earthquake Insurance Policy
[13] No, cancel the Earthquake Insurance Policy.
Result: Passed

ITEM 5 – NON‐BINDING INFORMATIONAL POLL ONLY

In the near future you will be asked to vote to approve a special assessment in the projected amount of $170,000 per unit. To accommodate interested homeowners, the Board is considering entering into a loan with a financial institution for those homeowners that would prefer using the Association’s loan, rather than their own individual loan. We are trying to get an understanding of the number of homeowners that would be interested. [Note: If you select YES below that you are interested, you would not be required to use the Association’s loan.]

Should the Special Assessment pass:

Vote:
[20] Yes, I am interested in using the Association’s loan.
[42] No, I will come up with the funds on my own.

Election results cerfied to be true and correct:
Cindy Redondo, Inspector of Elections, Notary Public, State of California, Commission #2293502