25211 empty saddle drivenelliegailranch.org/wp-content/uploads/2019-20-budget... · 2019-08-29 ·...

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25211 Empty Saddle Drive

Laguna Hills, CA 92653 949.425.1477 Phone – 949.425.1478 Fax

www.nelliegailranch.org

Annual 2019-20 Budget and Reserve Disclosures

DATE : August 29, 2019

TO : The Nellie Gail Ranch Owners Association Membership

FROM : The Board of Directors

RE : 2019-20 Budget – Effective October 1, 2019 Each year the Nellie Gail Ranch Owners Association Board of Directors performs a careful review of the past year’s expenses and income to best project the amount to collect from each Member in the upcoming fiscal year. When reviewing the budget, the Board considers factors such as: recurring contract revenues and costs, inflation, utility usage and rates, insurance premiums and appropriate Reserve contributions to pay for repair, restoration and/or replacement of common area components as needed. As a result of this review, the Board has determined that an assessment increase is required to meet the Nellie Gail Ranch Owners Association (Nellie Gail Ranch) financial needs for the upcoming fiscal year. The assessment will be $437 per quarter, an increase of 9.8%, for the 2019-20 fiscal year beginning October 1, 2019. You have the option of paying a single annual payment of $1,728 which includes a $20 discount. Annual payments must be posted by October 31, 2019 in order for the discount to be applied; otherwise the annual payment amount is $1,748. This assessment increase of $13.00 per month is the first increase implemented since 2017. The following line items are the driving factors for the increase: 1. Cell tower revenue is decreasing $1.18 per homeowner per month due to loss of one tower

tenant resulting from mergers. 2. Mobile patrol security is increasing $0.47 per homeowner per month. Funding for mobile

patrol security is consistent with the Member vote June 2019. 3. Contract landscape is increasing $0.79 per homeowner per month primarily due to minimum

wage increases. 4. Payroll and payroll taxes are increasing $2.71 per homeowner per month. 5. Trail maintenance is increasing $8.29 per homeowner per month. The services were bid out

and the current service provider is providing the best value. Included in this Budget Packet are the Following: State law and the Nellie Gail Ranch governing documents require the distribution of the following documents to each Member:

Pro Forma Consolidated Nellie Gail Ranch Budget for the 2019-20 Fiscal Year Association Cost Center Pro Forma Budget for the 2019-20 Fiscal Year Association Cost Center Assessment and Reserve Funding Disclosure Summary

Annual 2019-20 Budget and Reserve Disclosures August 29, 2019 of 5

Equestrian Center Pro Forma Budget for the 2019-20 Fiscal Year Equestrian Center Assessment and Reserve Funding Disclosure Summary Swim Center Pro Forma Budget for the 2019-20 Fiscal Year Swim Center Assessment and Reserve Funding Disclosure Summary Tennis Center Pro Forma Budget for the 2019-20 Fiscal Year Tennis Center Assessment and Reserve Funding Disclosure Summary Options for Payment of Member Dues Delinquency Policy and Disclosures as follows:

o Delinquent Assessment Collection Policy Notice of Assessments and Foreclosure Payments Meetings and Payment Plans Assignment of Rents Alternative Dispute Resolution (ADR) procedure Internal Dispute Resolution (IDR) procedure

Annual Policy Statement Architectural Review Process & Submittal Requirements Insurance Notification

About the Reserve Study To ensure that Nellie Gail Ranch major reserve components are appropriately identified and funded, a professional Reserve Analyst was retained to calculate appropriate reserve budgets based on useful life, remaining life and replacement value of components. The Nellie Gail Ranch Board of Directors has relied on information, opinions, reports and statements presented to it by vendors, contractors, reserve study specialists, CPA’s and/or other professionals and is relying upon this information, financial data and reports pursuant to the California Corporations Code in providing the association membership the information contained in this Assessment Reserve Funding Disclosure Summary. The information contained within the Reserve Study includes assumptions regarding future events based on information supplied to Nellie Gail Ranch from said professionals. Some assumptions inevitably will not materialize and unanticipated events and circumstances may occur subsequent to the date of this Disclosure Summary. Therefore, the actual replacement cost and remaining life may vary from the Reserve Study and the variation may be significant. Additionally, inflation and other economic events may impact the Reserve Study, particularly over a 30-year period of time which could impact the accuracy of the Reserve Study and the funds available to meet Nellie Gail Ranch’s obligation for repair and/or replacement of major components during the next 30 years. Furthermore, severe weather conditions, earthquakes, floods or other acts of God, the occurrence of vandalism and other events that are difficult to anticipate cannot be accounted for and are excluded when assessing life expectancy of the components. The Reserve Study only includes items that the Association has a clear and express responsibility to maintain pursuant to the Nellie Gail Ranch CC&R’s. The following disclosures are provided regarding Nellie Gail Ranch’s reserve funds:

1) In the upcoming year, Nellie Gail Ranch will fund Reserves using regular assessments, cost center revenue and interest revenue.


2) Nellie Gail Ranch has a total of $3,523,296 in actual accumulated Reserve funds as of June 30, 2019. It is anticipated that the amount will decrease to $3,282,282 by the end of the current fiscal year. According to the Reserve Analyst, the total replacement cost for all major components is $4,885,920. The current Reserve fund amount represents 67% of the projected total replacement cost. Although this number may seem low, the Legislature requires Nellie Gail Ranch to disclose how much it would cost the association to rebuild all of its major common area components if they were replaced all at once.

3) The Reserve Analysis reflects Nellie Gail Ranch will be 112.7% funded to the ideal funding level at the start of the upcoming fiscal year. That number represents the amount Nellie Gail Ranch is anticipated to have on hand to repair or replace major components when they are scheduled to be repaired or replaced.

4) Repair or replacement of the following components with a remaining life of 0 years, as identified in the 2018-19 Reserve Study, were not completed as components were deemed to have additional remaining life, or repairs were deferred pending completion of the Clubhouse Refresh Project.

Item #

Item Description Reason for Deferral or Decision to Not Undertake Repairs/Replacement

1 Association: Volleyball Court Lighting

Deferred to 2019-20 / Extended life of component

2 Dapple Grey Arena - Footing & Kickboards


3 Park Drinking Fountains Deferred to 2019-20 / Extended life of component

4 Gallup Park Gazebo Painting


5 Hundred Foot Arena Footing


6 Moulton Park Arena Base and Footing


7 Moulton Park Storage Shed Painting


8 Cabot Arena Table Deferred to 2019-20 / Extended life of component

9 Trail Engineering/Regrade Performing work on an ongoing basis

10 Equestrian Center: Interior / Exterior Bldg. Painting



11 Equestrian Center Clubhouse: Window Covering


12 Swim Center: Exterior / Interior Bldg. Painting


13 Swim Center: Concrete Pool Deck Contingency


14 Tennis Center: Concrete Repairs


15 Tennis Center: Chain Link Fence Repaint


16 Tennis Center: Court 1 & 2 Retaining Wall Repair


Insurance Information

Nellie Gail Ranch Owners Association carries General Liability insurance in the amount of $16 million which exceeds the minimum amount specified in California law to ensure that owners are only individually liable for their proportionate share of special or regular assessments levied to pay any judgments against Nellie Gail Ranch Owners Association which exceed the limits of Nellie Gail Ranch Owners Association’s insurance. Additional disclosures regarding insurance policies can be found within this packet, including the name(s) of the insurer(s), the types of insurance, the policy limits, and the amount of deductibles.

Other Disclosures The Board of Directors does not anticipate that any special assessment will be required during the 2019-20 fiscal year to repair, replace and/or restore any major components or to provide adequate reserves. Copies of Board meeting minutes are available on NellieGailRanch.org and upon request throughout the year. Minutes are available thirty days following the meeting date and any charges involved for copying and postage for those minutes are the responsibility of the requesting owner. If the minutes are not approved by the Board within the 30-day period of the request, draft minutes will be provided to you. Please contact General Manager, Brian Mitchell at 949-425-1477 or via e-mail at [email protected] should you have any questions or if you would like a hard copy of the budget or this packet at Nellie Gail Ranch’s expense or if you would like a digital or hard copy of the complete Reserve Study plan. These documents are also available on NellieGailRanch.org and for review by appointment at 25211 Empty Saddle Drive. Budget Packet Attachments: 1. Pro Forma Consolidated Nellie Gail Ranch Budget for the 2019-20 Fiscal Year 2. Cost Center Budgets and Assessment Reserve Funding Disclosure Summaries

Association Cost Center Pro Forma Budget for the 2019-20 Fiscal Year Association Cost Center Assessment and Reserve Funding Disclosure Summary


Equestrian Center Pro Forma Budget for the 2019-20 Fiscal Year Equestrian Center Assessment and Reserve Funding Disclosure Summary Swim Center Pro Forma Budget for the 2019-20 Fiscal Year Swim Center Assessment and Reserve Funding Disclosure Summary Tennis Center Pro Forma Budget for the 2019-20 Fiscal Year Tennis Center Assessment and Reserve Funding Disclosure Summary

3. Options for Payment of Member Dues 4. Delinquency Policy and Disclosures as follows:

Delinquent Assessment Collection Policy o Notice of Assessments and Foreclosure o Payments o Meetings and Payment Plans o Assignment of Rents o Alternative Dispute Resolution (ADR) procedure o Internal Dispute Resolution (IDR) procedure

Annual Policy Statement Architectural Review Process & Submittal Requirements Insurance Notification

NELLIE GAIL RANCH OWNERS ASSOCIATION October 1, 2019 - September 30, 2020

Consolidated Budget For All Cost Centers

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2019-20Quarterly Budget

2019-20Annual Budget

REVENUE14004 OWNER ASSESSMENT REVENUE 614,859$ 2,459,436$ 14100 LATE FEES 125$ 500$ 14101 INTEREST ON PAST DUE ASSESSMENTS 63$ 250$ 14121 INTEREST REVENUE 2,500$ 15,975$ 14124 NEWSLETTER REVENUE 20,400$ 81,600$ 14132 MISCELLANEOUS REVENUE 250$ 1,000$ 14201 CELLULAR TOWER REVENUE 25,900$ 103,600$ 14393 JUDGEMENT REVENUE 450$ 1,800$ N14111 STALL RENTAL 204,535$ 818,140$ N14112 TRAINING/LICENSE FEE 7,815$ 31,260$ N14113 DRY STALL 3,945$ 15,780$ N14114 TRAILER STORAGE 3,480$ 13,920$ N14115 GRASS HAY OPTION 11,250$ 45,000$ N14121 ARCH PLANNING & CC&R FEES 10,000$ 40,000$ N14124 TENNIS/SWIM RENTAL 7,886$ 31,542$ N14133 TENNIS RENTAL REVENUE 2,500$ 10,000$ N14128 DELUXE STALL SURCHARGE - DELUXE ST 1,500$ 6,000$ N14129 SUMMER CAMP CLUBHOUSE RENTAL 2,500$ 10,000$ N14201 LATE FEE-EQUESTRIAN 625$ 2,500$ N14203 EQUESTRIAN MISCELLANEOUS 375$ 1,500$ N14221 INTEREST REVENUE - EQUESTRIAN 150$ 600$ N14135 OPERATING CONTINGENCY PAID TO EQ CENTER 8,688$ 34,752$ N14224 MAINTENANCE REVENUE FROM HOA 6,240$ 24,960$ N14233 BAD DEBT (2,500)$ (10,000)$ N14404 NON-OWNER MEMBERSHIP DUES 6,625$ 26,500$ N14409 SWIM LESSONS 700$ 2,800$ N14405 SWIM POOL RENTAL 5,375$ 21,500$ NT14300 MEMBERSHIP-TENNIS 69,432$ 277,727$

TOTAL REVENUE 1,015,667$ 4,068,642$

OPERATING EXPENSES

LANDSCAPE MAINTENANCE15500 CONTRACT LANDSCAPE SERVICE 63,639$ 254,555$ NS15500 CONTRACT LANDSCAPE SERVICE 636$ 2,542$ NT15500 CONTRACT LANDSCAPE SERVICE 2,481$ 9,923$ 15502 LANDSCAPE REPLACEMENT 15,000$ 60,000$ 15519 TREE TRIMMING 40,000$ 160,000$ 15547 LANDSCAPE EXTRAS 4,500$ 18,000$ 15499 IRRIGATION REPAIRS 6,000$ 24,000$ NE15502 LANDSCAPE REPLACEMENT 313$ 1,250$ NE15519 TREE TRIMMING 1,125$ 4,500$ NE15499 IRRIGATION REPAIRS 250$ 1,000$ NS15502 LANDSCAPE REPLACEMENT 125$ 500$ NS15519 TREE TRIMMING 275$ 1,100$ NT15502 LANDSCAPE REPLACEMENT 250$ 1,000$ NT15519 TREE TRIMMING 1,125$ 4,500$

TOTAL LANDSCAPE MAINTENANCE 135,718$ 542,870$



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SALARIES AND WAGESN17200 PAYROLL 122,293$ 489,172$ NE17200 PAYROLL 75,606$ 302,424$ NS17200 PAYROLL 3,750$ 15,000$ NT17200 PAYROLL 32,441$ 129,762$

TOTAL SALARIES AND WAGES 234,090$ 936,358$

PAYROLL RELATED EXPENSESN17201 PAYROLL TAXES 10,017$ 40,068$ N17202 MEDICAL/DENTAL INSURANCE 10,000$ 40,000$ N17203 WORKMAN'S COMP 5,533$ 22,131$ N17204 IRA - EMPLOYER 3,299$ 13,197$ N17208 EMPLOYEE BONUS 5,000$ 20,000$ N17209 EMPLOYEE UNIFORMS 250$ 1,000$ NE17201 PAYROLL TAXES 6,445$ 25,781$ NE17202 MEDICAL/DENTAL INSURANCE 7,734$ 30,937$ NE17203 WORKMAN'S COMP 8,250$ 33,000$ NE17204 IRA - EMPLOYER 1,388$ 5,550$ NE17206 EMPLOYEE UNIFORMS 450$ 1,800$ NE17207 EMPLOYEE BONUS 2,125$ 8,500$ NS17201 PAYROLL TAXES 287$ 1,148$ NS17202 MEDICAL/DENTAL INSURANCE 2,905$ 11,618$ NS17203 WORKMAN'S COMP 313$ 1,250$ NS17204 IRA - EMPLOYER 427$ 1,708$ NT 17201 PAYROLL TAXES 3,427$ 13,707$ NT17203 WORKMAN'S COMP 788$ 3,150$ NT17204 401K - EMPLOYER 346$ 1,382$

TOTAL PAYROLL RELATED EXPENSES 68,982$ 275,927$

ADMINISTRATIVE19104 FEDERAL TAX EXPENSE -$ -$ 19105 FRANCHISE TAX BOARD 2,250$ 9,000$ 19110 NEWSLETTER EXPENSE 14,375$ 57,500$ 19112 POSTAGE, ON-SITE 625$ 2,500$ 19118 BOARD MEETING EXPENSE 550$ 2,200$ 19119 BANK FEES 180$ 720$ 19120 EDUCATION 375$ 1,500$ 19125 CONSULTANT SERVICES 3,750$ 15,000$ 19137 ARCHITECTURAL INSPECTION 8,750$ 35,000$ 19143 LEGAL COLLECTIONS 2,000$ 8,000$ 19146 PRINTING/COPY 1,750$ 7,000$ 19174 AMS COLLECTION EXPENSE 625$ 2,500$ 19178 PROPERTY TAX 238$ 950$ 19207 ANNUAL ELECTION EXPENSE 1,250$ 5,000$ 19250 SECURITY STAFF 49,250$ 197,000$ 19281 WEBSITE MONTHLY FEE 300$ 1,200$ 19292 COMPUTER SUPPORT 2,000$ 8,000$ 19296 SOCIAL ACTIVITIES 15,000$ 60,000$ 19302 OFFICE SUPPLIES/EXPENSE 1,000$ 4,000$ 19372 VOLUNTEER RECOGNITION 500$ 2,000$ N19400 SIGNAGE 291$ 1,165$ N19406 EMERGENCY PREPAREDNESS 1,900$ 7,600$ NE19120 EDUCATION 25$ 100$



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NE19125 CONSULTANT SERVICES 150$ 600$ NE19205 PERMITS/LICENSES 175$ 700$ NE19302 OFFICE SUPPLIES/EXPENSE 750$ 3,000$ NE19400 SIGNAGE 175$ 700$ NS19125 LIFEGUARD SERVICES 540$ 2,160$ NS19205 PERMITS/LICENSES 188$ 750$

TOTAL ADMINISTRATIVE 108,961$ 435,845$

CAPITAL / CONTINGENCY PROJECTS18809 CAPITAL EXPENDITURE (Association) 12,295$ 49,180$ 19132 OPERATING CONTINGENCY (Association) 12,295$ 49,180$ 19123E OPERATING CONTINGENCY PAID TO EQ CENTER 8,688$ 34,752$

TOTAL CAPITAL PROJECTS 33,278$ 133,112$

LEGAL19108 LEGAL SERVICE 8,750$ 35,000$

TOTAL LEGAL 8,750$ 35,000$

ACCOUNTING19100 ACCOUNTING 11,500$ 46,000$

TOTAL ACCOUNTING 11,500$ 46,000$

INSURANCE19107 INSURANCE 17,000$ 68,000$ NE19107 INSURANCE 2,508$ 10,030$ NS19107 INSURANCE 71$ 285$

TOTAL INSURANCE 19,579$ 78,315$

UTILITIES15101 ELECTRICITY 1,250$ 5,000$ 15106 WATER 13,750$ 55,000$ 18002 INTERNET ACCESS 315$ 1,260$ NE15100 CABLE TV 255$ 1,020$ NE15101 ELECTRICITY 4,375$ 17,500$ NE15102 GAS 325$ 1,300$ NE15106 WATER 3,750$ 15,000$ NE18002 INTERNET ACCESS 168$ 670$ NS15100 CABLE TV 214$ 855$ NS15101 ELECTRICITY 7,125$ 28,500$ NS15102 GAS 8,000$ 32,000$ NS15106 WATER 1,563$ 6,250$ NT15100 CABLE TV 238$ 950$ NT15101 ELECTRICITY 9,225$ 36,900$ NT15102 GAS 925$ 3,700$ NT15106 WATER 925$ 3,700$ 19317 PHONES 1,625$ 6,500$ NE19317 PHONES 275$ 1,100$ NS19317 PHONES 250$ 1,000$ NT19317 PHONES 275$ 1,100$

TOTAL UTILITIES 54,826$ 219,305$



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REPAIRS AND MAINTENANCE15103 REFUSE COLLECTION 4,250$ 17,000$ 15535 TRAIL MAINTENANCE 77,500$ 310,000$ 16501 ELECTRICAL/LIGHTING REPAIRS 750$ 3,000$ 17300 GENERAL MAINTENANCE - CLUBHOUSE 2,125$ 8,500$ 18521 HANDYMAN EXPENSE 10,500$ 42,000$ 18526 PEST CONTROL 4,725$ 18,900$ 18948 EC MAINTENANCE REIMBURSEMENT 6,240$ 24,960$ N19401 VEHICLE MAINT/GAS 750$ 3,000$ N19402 OFFICE MAINTENANCE 438$ 1,750$ NE16501 MAINTENANCE/REPAIRS 6,000$ 24,000$ NE16502 JANITORIAL SERVICE 575$ 2,300$ NE18526 PEST CONTROL 1,700$ 6,800$ NE18824 MANURE DISPOSAL 16,738$ 66,950$ NE18825 ARENA MATERIAL/SAND 1,500$ 6,000$ NE19401 VEHICLE MAINT/GAS 2,375$ 9,500$ NS15103 REFUSE COLLECTION 163$ 650$ NS16501 MAINTENANCE / REPAIRS 2,125$ 8,500$ NS16502 JANITORIAL EXPENSE 3,465$ 13,860$ NS16503 JANITORIAL SUPPLIES EXPENSE 725$ 2,900$ NS16504 POOL MAINTENANCE 7,635$ 30,540$ NS18526 PEST CONTROL 180$ 720$ NS18947 FACILITY MISC EXP 188$ 750$ NT15103 REFUSE COLLECTION 158$ 630$ NT16503 JANITORIAL EXPENSE 1,625$ 6,500$ NT16504 GENERAL MAINTENANCE - CLUBHOUSE 625$ 2,500$ NT18526 PEST CONTROL 550$ 2,200$ NT18725 HVAC MAINT - HEATING/AIR 75$ 300$

TOTAL REPAIRS AND MAINTENANCE 153,678$ 614,710$

FEED AND SHAVINGSNE18822 FEED 41,750$ 167,000$ NE18823 SHAVINGS 36,250$ 145,000$

TOTAL FEED AND SHAVINGS 78,000$ 312,000$

RESERVE CONTRIBUTION19630 PARK RESERVE 6,765$ 27,060$ 19734 TREE REPLACEMENT RESERVE 4,878$ 19,512$ 19741 CLUBHOUSE RESERVE 2,376$ 9,504$ 19790 OFFICE EQUIPMENT RESERVES 1,605$ 6,420$ 19803 RESERVE INTEREST -$ -$ 19821 STREETS/DRIVES RESERVES 2,013$ 8,052$ 19822 STREETSCAPES RESERVE 684$ 2,736$ 19823 VEHICLE/EQUIPMENT RESERVE 1,179$ 4,716$ 19833 IRRIGATION RESERVE 2,244$ 8,976$ 19838 WALLS & FENCES RESERVE 8,616$ 34,464$ 19904 TRAIL RESERVE 11,853$ 47,412$ N19802 NEIGHBORHOOD ARENAS RESERVE 4,116$ 16,464$ N19875 SOLAR PANELS RESERVE 471$ 1,884$ NE19701 PAINT RESERVE 3,132$ 12,528$ NE19741 CLUBHOUSE RESERVE 1,518$ 6,072$ NE19800 BARNS RESERVE 4,977$ 19,908$ NE19801 ARENAS RESERVE 7,053$ 28,212$



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NE19802 EQUIPMENT/VEHICLES RESERVE 3,426$ 13,704$ NE19813 LIGHTING RESERVE 315$ 1,260$ NE19821 STREETS/DRIVES RESERVE 963$ 3,852$ NE19838 WALLS & FENCES RESERVE 2,124$ 8,496$ NE19839 PIPE STALLS / ROUND PEN RESERVE 2,106$ 8,424$ NE19840 ROOF RESERVE 1,986$ 7,944$ NS19701 PAINT RESERVE 1,330$ 5,320$ NS19790 OFFICE/RESTROOMS RESERVE 564$ 2,256$ NS19813 LIGHTING RESERVE 191$ 765$ NS19822 POOL/SPA RESERVE 6,790$ 27,160$ NS19838 WALLS & FENCES RESERVE 875$ 3,500$ NS19873 MISCELLANEOUS RESERVE 1,818$ 7,271$ NS19875 SOLAR PANELS RESERVE 723$ 2,892$ NS19876 POOL FURNISHINGS 2,559$ 10,236$ NT19701 PAINT RESERVE 1,320$ 5,280$ NT19702 CONCRETE GRIND / REPAIR 1,929$ 7,716$ NT19741 CLUBHOUSE RESERVE 3,720$ 14,880$ NT19790 OFFICE EQUIPMENT RESERVE 1,209$ 4,836$ NT19813 LIGHTING RESERVE 1,269$ 5,076$ NT19823 TENNIS COURTS RESERVE 4,734$ 18,936$ NT19838 WALLS & FENCES RESERVE 1,386$ 5,544$ NT19844 RESTROOMS RESERVE 2,916$ 11,664$ NT19873 MISCELLANEOUS RESERVE 1,173$ 4,692$ NT19875 SOLAR PANELS RESERVE 744$ 2,976$

TOTAL RESERVE CONTRIBUTION 109,650$ 438,600$

TOTAL EXPENSES 1,017,011$ 4,068,042$

ASSOCIATION COST CENTER NET INCOME/(LOSS) 2,851$ 11,402$ EQUESTRIAN CENTER NET INCOME/(LOSS) 0$ 0$ SWIM CENTER NET INCOME/(LOSS) 0$ 0$ TENNIS CENTER NET INCOME/(LOSS) (2,851)$ (11,402)$

TOTAL NELLIE GAIL RANCH NET INCOME/(LOSS) 0$ 0$

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Association Cost Center 2019-20 Budget and Reserve Disclosures

The Nellie Gail Ranch Association Cost Center has a total of $1,770,759 in actual accumulated Reserve funds as of June 30, 2019. It is anticipated that the amount will decrease to $1,605,699 by the end of the current fiscal year. According to the Reserve Analyst, the total replacement cost for all Association Cost Center major components is $1,826,975. The Reserve Analysis reflects Nellie Gail Ranch Association Cost Center will be 139.3% funded to the ideal funding level at the start of the upcoming fiscal year. That number represents the amount Nellie Gail Ranch is anticipated to have on hand to repair or replace major components when they are scheduled to be repaired or replaced.

The current Reserve fund amount represents 88% of the projected total replacement cost. This percentage reflects how much it would cost the association to rebuild all of its major common area components if they were replaced all at once.

Budget Attachments: Association Cost Center Pro Forma Budget for the 2019-20 Fiscal Year Association Cost Center Assessment and Reserve Funding Disclosure Summary

NELLIE GAIL RANCH OWNERS ASSOCIATIONAssociation Cost Center

October 1, 2019 - September 30, 2020 Budget

Page 1 of 3

2019-20Quarterly


REVENUE14004 OWNER ASSESSMENT REVENUE 614,859$ 2,459,436$ 14100 LATE FEES 125$ 500$ 14101 INTEREST ON PAST DUE ASSESSMENTS 63$ 250$ 14121 INTEREST REVENUE 2,500$ 10,000$ 14124 NEWSLETTER REVENUE 20,400$ 81,600$ 14132 MISCELLANEOUS REVENUE 250$ 1,000$ 14201 CELLULAR TOWER REVENUE 25,900$ 103,600$ 14393 JUDGEMENT REVENUE 450$ 1,800$ N14121 ARCHITECTURAL PLANNING & CC&R FEES 10,000$ 40,000$ N14233 BAD DEBT (2,500)$ (10,000)$ N14400 MEMBERSHIP-SWIM (35,161)$ (140,644)$

TOTAL REVENUE 636,886$ 2,547,542$

OPERATING EXPENSES

LANDSCAPE MAINTENANCE15500 CONTRACT LANDSCAPE SERVICE 63,639$ 254,555$ 15502 LANDSCAPE REPLACEMENT 15,000$ 60,000$ 15519 TREE TRIMMING 40,000$ 160,000$ 15547 LANDSCAPE EXTRAS 4,500$ 18,000$ 15499 IRRIGATION REPAIRS 6,000$ 24,000$


SALARIES AND WAGESN17200 PAYROLL 122,293$ 489,172$


PAYROLL RELATED EXPENSESN17201 PAYROLL TAXES 10,017$ 40,068$ N17202 MEDICAL/DENTAL INSURANCE 10,000$ 40,000$ N17203 WORKMAN'S COMP 5,533$ 22,131$ N17204 IRA - EMPLOYER 3,299$ 13,197$ N17208 EMPLOYEE BONUS 5,000$ 20,000$ N17209 EMPLOYEE UNIFORMS 250$ 1,000$


ADMINISTRATIVE19104 FEDERAL TAX EXPENSE -$ -$ 19105 FRANCHISE TAX BOARD 2,250$ 9,000$ 19110 NEWSLETTER EXPENSE 14,375$ 57,500$ 19112 POSTAGE, ON-SITE 625$ 2,500$ 19118 BOARD MEETING EXPENSE 550$ 2,200$ 19119 BANK FEES 180$ 720$ 19120 EDUCATION 375$ 1,500$ 19125 CONSULTANT SERVICES 3,750$ 15,000$ 19137 ARCHITECTURAL INSPECTION 8,750$ 35,000$ 19143 LEGAL COLLECTIONS 2,000$ 8,000$ 19146 PRINTING/COPY 1,750$ 7,000$



Page 2 of 3

2019-20Quarterly


19174 AMS COLLECTION EXPENSE 625$ 2,500$ 19178 PROPERTY TAX 238$ 950$ 19207 ANNUAL ELECTION EXPENSE 1,250$ 5,000$ 19250 SECURITY STAFF 49,250$ 197,000$ 19281 WEBSITE MONTHLY FEE 300$ 1,200$ 19292 COMPUTER SUPPORT 2,000$ 8,000$ 19296 SOCIAL ACTIVITIES 15,000$ 60,000$ 19372 VOLUNTEER RECOGNITION 500$ 2,000$ 19302 OFFICE SUPPLIES/EXPENSE 1,000$ 4,000$ N19400 SIGNAGE 291$ 1,165$ N19406 EMERGENCY PREPAREDNESS 1,900$ 7,600$


CAPITAL / CONTINGENCY PROJECTS18809 CAPITAL EXPENDITURE 12,295$ 49,180$ 19132 OPERATING CONTINGENCY 12,295$ 49,180$ 19123E OPERATING CONTINGENCY PAID TO EQ CENTER 8,688$ 34,752$

TOTAL CAPITAL / CONTINGENCY PROJECTS 33,278$ 133,112$

LEGAL19108 LEGAL SERVICE 8,750$ 35,000$

TOTAL LEGAL 8,750$ 35,000$

ACCOUNTING19100 ACCOUNTING 11,500$ 46,000$

TOTAL ACCOUNTING 11,500$ 46,000$

INSURANCE19107 INSURANCE 17,000$ 68,000$


UTILITIES15101 ELECTRICITY 1,250$ 5,000$ 15106 WATER 13,750$ 55,000$ 18002 INTERNET ACCESS 315$ 1,260$ 19317 PHONES 1,625$ 6,500$


REPAIRS AND MAINTENANCE15103 REFUSE COLLECTION 4,250$ 17,000$ 15535 TRAIL MAINTENANCE 77,500$ 310,000$ 16501 ELECTRICAL/LIGHTING REPAIRS 750$ 3,000$ 17300 GENERAL MAINTENANCE - CLUBHOUSE 2,125$ 8,500$ 18521 HANDYMAN EXPENSE 10,500$ 42,000$ 18526 PEST CONTROL 4,725$ 18,900$ 18948 EC MAINTENANCE REIMBURSEMENT 6,240$ 24,960$ N19401 VEHICLE MAINT/GAS 750$ 3,000$ N19402 OFFICE MAINTENANCE 438$ 1,750$



Page 3 of 3


RESERVE CONTRIBUTION 2019-20Quarterly


19630 PARK RESERVE 6,765$ 27,060$ 19734 TREE REPLACEMENT RESERVE 4,878$ 19,512$ 19741 CLUBHOUSE RESERVE 2,376$ 9,504$ 19790 OFFICE EQUIPMENT RESERVES 1,605$ 6,420$ 19803 RESERVE INTEREST -$ -$ 19821 STREETS/DRIVES RESERVES 2,013$ 8,052$ 19822 STREETSCAPES RESERVE 684$ 2,736$ 19823 VEHICLE/EQUIPMENT RESERVE 1,179$ 4,716$ 19833 IRRIGATION RESERVE 2,244$ 8,976$ 19838 WALLS & FENCES RESERVE 8,616$ 34,464$ 19904 TRAIL RESERVE 11,853$ 47,412$ N19802 NEIGHBORHOOD ARENAS RESERVE 4,116$ 16,464$ N19875 SOLAR PANELS RESERVE 471$ 1,884$


TOTAL EXPENSES 634,035$ 2,536,140$

ASSOCIATION COST CENTER NET INCOME/(LOSS) 2,851$ 11,402$

Prepared by: Sabrina Willison Date: 8/8/2019

Assessment and Reserve Funding Disclosure Summary

Nellie Gail Ranch Owners Association - Master, Laguna Hills

For Fiscal Year Beginning: 10/1/2019 # of units: 1407

1) Budgeted Amounts: Total Average Per Unit*Reserve Contributions: $15,600.00 $11.09

Total Assessment Income: $190,334.00 $135.28 per: Month

2) Additional assessments that have already been scheduled to be imposed or charged, regardless of the purpose, if theyhave been approved by the board and/or members:

Year Total Amount Per Unit* PurposeTotal: $0.00

3) Based on the most recent Reserve Study and other information available to the Board of Directors, at this point in timedoes it appear that currently projected Reserve account balances will be sufficient at the end of each year to meet theassociation's obligation for repair and/or replacement of major components during the next 30 years? Yes

4) If the answer to #3 is no, what additional assessments or other contributions/loans to Reserves would be necessary toensure that sufficient Reserve Funds will be available each year during the next 30 years?

Approximate Fiscal Year AssessmentWill Be Due

Average Total Amount Per Unit*

Total: $0.00

5) All major components appropriate for Reserve Funding (components that are a common area maintenance responsibilitywith a limited life expectancy and predictable remaining useful life, above a minimum threshold cost of significance) areincluded in this Reserve Funding Plan: Yes

6) All computations/disclosures are based on the fiscal year start date of: 10/1/2019Fully Funded Balance (based on formula defined in 5570(b)4): $1,153,076Projected Reserve Fund Balance: $1,605,699Percent Funded: 139.3 %Reserve Deficit (surplus) on a mathematical avg-per-unit* basis: $-322From the 6/13/2019 Reserve Study by Association Reserves and any minor changes since that date.

* If assessments vary by the size or type of unit, allocate as noted within your Governing Documents.

7) See attached 30-yr Summary Table, showing the projected Reserve Funding Plan, Reserve Balance, Percent Funded,and assumptions for interest and inflation.

The financial representations at the time of preparation are based on the Reserve Study for the fiscal year shown at thetop of this page and the best estimates of the preparer. These estimates should be expected to change from year toyear. Some information on this form has been provided to Association Reserves, and has not been independentlyverified.

Association Reserves www.ReserveStudy.com1

17146-1030-Year Reserve Plan Starting with Board of Directors 2019 Rate

Fiscal Year Start: 10/1/2019 Interest: 1.00 % Inflation: 3.00 %

Reserve Fund Strength Calculations: (All values of FiscalYear Start Date)

Projected Reserve Balance Changes

%Increase

Starting Fully Special In Annual Loan orReserve Funded Percent Assmt Reserve Reserve Special Interest Reserve

Year Balance Balance Funded Risk Contribs. Contribs. Assmts Income Expenses

2019 $1,605,699 $1,153,076 139.3 % Low 0.00 % $187,200 $0 $15,721 $268,800

2020 $1,539,820 $1,207,286 127.5 % Low 10.00 % $205,920 $0 $14,934 $312,502

2021 $1,448,172 $1,227,004 118.0 % Low 10.00 % $226,512 $0 $13,503 $434,704

2022 $1,253,482 $1,130,606 110.9 % Low 10.00 % $249,163 $0 $12,238 $319,677

2023 $1,195,206 $1,159,231 103.1 % Low 10.00 % $274,080 $0 $11,314 $411,998

2024 $1,068,602 $1,103,343 96.9 % Low 10.00 % $301,487 $0 $10,795 $289,471

2025 $1,091,414 $1,181,992 92.3 % Low 10.00 % $331,636 $0 $11,211 $282,453

2026 $1,151,809 $1,280,540 89.9 % Low 10.00 % $364,800 $0 $11,499 $379,047

2027 $1,149,061 $1,293,173 88.9 % Low 10.00 % $401,280 $0 $11,329 $444,003

2028 $1,117,667 $1,250,219 89.4 % Low 3.00 % $413,318 $0 $11,220 $415,016

2029 $1,127,189 $1,247,101 90.4 % Low 3.00 % $425,718 $0 $11,679 $354,928

2030 $1,209,657 $1,317,385 91.8 % Low 3.00 % $438,489 $0 $12,619 $345,643

2031 $1,315,122 $1,411,294 93.2 % Low 3.00 % $451,644 $0 $13,823 $329,921

2032 $1,450,668 $1,536,527 94.4 % Low 3.00 % $465,193 $0 $14,606 $458,770

2033 $1,471,697 $1,545,483 95.2 % Low 3.00 % $479,149 $0 $15,700 $296,853

2034 $1,669,693 $1,734,544 96.3 % Low 3.00 % $493,524 $0 $17,201 $408,499

2035 $1,771,918 $1,827,736 96.9 % Low 3.00 % $508,329 $0 $18,871 $295,186

2036 $2,003,933 $2,054,293 97.5 % Low 3.00 % $523,579 $0 $18,761 $796,425

2037 $1,749,849 $1,785,644 98.0 % Low 3.00 % $539,287 $0 $17,999 $455,741

2038 $1,851,392 $1,874,540 98.8 % Low 3.00 % $555,465 $0 $18,231 $628,816

2039 $1,796,272 $1,802,979 99.6 % Low 3.00 % $572,129 $0 $18,591 $463,448

2040 $1,923,544 $1,915,196 100.4 % Low 3.00 % $589,293 $0 $19,471 $559,986

2041 $1,972,322 $1,947,410 101.3 % Low 3.00 % $606,972 $0 $20,577 $454,979

2042 $2,144,893 $2,105,294 101.9 % Low 3.00 % $625,181 $0 $21,250 $684,341

2043 $2,106,983 $2,048,714 102.8 % Low 3.00 % $643,936 $0 $21,022 $672,662

2044 $2,099,280 $2,020,020 103.9 % Low 3.00 % $663,254 $0 $21,752 $531,296

2045 $2,252,990 $2,154,153 104.6 % Low 3.00 % $683,152 $0 $24,064 $398,430

2046 $2,561,775 $2,447,785 104.7 % Low 3.00 % $703,647 $0 $26,568 $537,996

2047 $2,753,993 $2,625,654 104.9 % Low 3.00 % $724,756 $0 $28,322 $594,175

2048 $2,912,897 $2,770,753 105.1 % Low 3.00 % $746,499 $0 $29,686 $662,325


of 1




Equestrian Center 2019-20 Budget and Reserve Disclosures

The Nellie Gail Ranch Equestrian Center has a total of $790,857 in actual accumulated Reserve funds as of June 30, 2019. It is anticipated that the amount will decrease to $778,312 by the end of the current fiscal year. According to the Reserve Analyst, the total replacement cost for all Equestrian Center major components is $1,573,795. The Reserve Analysis reflects Nellie Gail Ranch Equestrian Center will be 85.7% funded to the ideal funding level at the start of the upcoming fiscal year. That number represents the amount Nellie Gail Ranch is anticipated to have on hand to repair or replace major components when they are scheduled to be repaired or replaced.

The current Reserve fund amount represents 49% of the projected total replacement cost. Although this percentage may appear low, it merely reflects how much it would cost the association to rebuild all of its major common area components if they were replaced all at once.

The funding level has improved from the 2018-19 fiscal year. Over the next year further evaluation will be performed to determine firm budgets for future replacement costs of major components as well as consideration of Useful and Remaining Life Values. Budget Attachments: Equestrian Center Pro Forma Budget for the 2019-20 Fiscal Year Equestrian Center Assessment and Reserve Funding Disclosure Summary

NELLIE GAIL RANCH OWNERS ASSOCIATION Equestrian Center


Page 1 of 2



REVENUEN14111 STALL RENTAL 204,535$ 818,140$ N14112 TRAINING/LICENSE FEE 7,815$ 31,260$ N14113 DRY STALL 3,945$ 15,780$ N14114 TRAILER STORAGE 3,480$ 13,920$ N14115 GRASS HAY OPTION 11,250$ 45,000$ N14128 DELUXE STALL SURCHARGE - DELUXE ST 1,500$ 6,000$ N14129 SUMMER CAMP CLUBHOUSE RENTAL 2,500$ 10,000$ N14201 LATE FEE-EQUESTRIAN 625$ 2,500$ N14203 EQUESTRIAN MISCELLANEOUS 375$ 1,500$ N14221 INTEREST REVENUE - EQUESTRIAN 150$ 600$ N14135 OPERATING CONTINGENCY PAID TO EQ CEN 8,688$ 34,752$ N14224 MAINTENANCE REVENUE FROM HOA 6,240$ 24,960$

TOTAL REVENUE 251,103$ 1,004,412$

OPERATING EXPENSES

LANDSCAPE MAINTENANCENE15502 LANDSCAPE REPLACEMENT 313$ 1,250$ NE15519 TREE TRIMMING 1,125$ 4,500$ NE15499 IRRIGATION REPAIRS 250$ 1,000$


SALARIES AND WAGESNE17200 PAYROLL 75,606$ 302,424$


PAYROLL RELATED EXPENSESNE17201 PAYROLL TAXES 6,445$ 25,781$ NE17202 MEDICAL/DENTAL INSURANCE 7,734$ 30,937$ NE17203 WORKMAN'S COMP 8,250$ 33,000$ NE17204 IRA - EMPLOYER 1,388$ 5,550$ NE17206 EMPLOYEE UNIFORMS 450$ 1,800$ NE17207 EMPLOYEE BONUS 2,125$ 8,500$


ADMINISTRATIVENE19120 EDUCATION 25$ 100$ NE19125 CONSULTANT SERVICES 150$ 600$ NE19205 PERMITS/LICENSES 175$ 700$ NE19302 OFFICE SUPPLIES/EXPENSE 750$ 3,000$ NE19400 SIGNAGE 175$ 700$


INSURANCENE19107 INSURANCE 2,508$ 10,030$


NELLIE GAIL RANCH OWNERS ASSOCIATION Equestrian Center


Page 2 of 2



UTILITIESNE15100 CABLE TV 255$ 1,020$ NE15101 ELECTRICITY 4,375$ 17,500$ NE15102 GAS 325$ 1,300$ NE15106 WATER 3,750$ 15,000$ NE18002 INTERNET ACCESS 168$ 670$ NE19317 PHONES 275$ 1,100$


REPAIRS AND MAINTENANCENE16501 MAINTENANCE/REPAIRS 6,000$ 24,000$ NE16502 JANITORIAL SERVICE 575$ 2,300$ NE18526 PEST CONTROL 1,700$ 6,800$ NE18824 MANURE DISPOSAL 16,738$ 66,950$ NE18825 ARENA MATERIAL/SAND 1,500$ 6,000$ NE19401 VEHICLE MAINT/GAS 2,375$ 9,500$


FEED AND SHAVINGSNE18822 FEED 41,750$ 167,000$ NE18823 SHAVINGS 36,250$ 145,000$

TOTAL FEED AND SHAVINGS 78,000$ 312,000$

RESERVE CONTRIBUTIONNE19701 PAINT RESERVE 3,132$ 12,528$ NE19741 CLUBHOUSE RESERVE 1,518$ 6,072$ NE19800 BARNS RESERVE 4,977$ 19,908$ NE19801 ARENAS RESERVE 7,053$ 28,212$ NE19802 EQUIPMENT/VEHICLES RESERVE 3,426$ 13,704$ NE19813 LIGHTING RESERVE 315$ 1,260$ NE19821 STREETS/DRIVES RESERVE 963$ 3,852$ NE19838 WALLS & FENCES RESERVE 2,124$ 8,496$ NE19839 PIPE STALLS / ROUND PEN RESERVE 2,106$ 8,424$ NE19840 ROOF RESERVE 1,986$ 7,944$


TOTAL EXPENSES 251,103$ 1,004,412$

EQUESTRIAN CENTER NET INCOME/(LOSS) -$ -$



Nellie Gail Ranch - Equestrian Center, Laguna Hills






3) Based on the most recent Reserve Study and other information available to the Board of Directors, at this point in timedoes it appear that currently projected Reserve account balances will be sufficient at the end of each year to meet theassociation's obligation for repair and/or replacement of major components during the next 30 years? No




2034 $300.00

Total: $300.00


6) All computations/disclosures are based on the fiscal year start date of: 10/1/2019Fully Funded Balance (based on formula defined in 5570(b)4): $908,665Projected Reserve Fund Balance: $778,312Percent Funded: 85.7 %Reserve Deficit (surplus) on a mathematical avg-per-unit* basis: $93From the 7/8/2019 Reserve Study by Association Reserves and any minor changes since that date.









%Increase



2019 $778,312 $908,665 85.7 % Low 0.00 % $110,400 $0 $7,030 $267,550

2020 $628,192 $816,395 76.9 % Low 5.00 % $115,920 $0 $6,380 $102,073

2021 $648,419 $896,479 72.3 % Low 5.00 % $121,716 $0 $6,763 $72,194

2022 $704,703 $1,014,562 69.5 % Medium 5.00 % $127,802 $0 $7,170 $109,764

2023 $729,911 $1,102,458 66.2 % Medium 5.00 % $134,192 $0 $7,441 $112,551

2024 $758,993 $1,195,235 63.5 % Medium 5.00 % $140,901 $0 $6,933 $278,632

2025 $628,196 $1,125,002 55.8 % Medium 5.00 % $147,947 $0 $5,907 $228,392

2026 $553,657 $1,109,835 49.9 % Medium 5.00 % $155,344 $0 $6,021 $64,040

2027 $650,982 $1,269,087 51.3 % Medium 5.00 % $163,111 $0 $6,316 $207,560

2028 $612,849 $1,291,047 47.5 % Medium 3.00 % $168,004 $0 $6,219 $155,659

2029 $631,413 $1,373,054 46.0 % Medium 3.00 % $173,045 $0 $5,714 $298,349

2030 $511,822 $1,316,658 38.9 % Medium 3.00 % $178,236 $0 $5,106 $185,418

2031 $509,745 $1,381,182 36.9 % Medium 3.00 % $183,583 $0 $4,492 $308,749

2032 $389,072 $1,327,091 29.3 % High 3.00 % $189,090 $0 $3,584 $253,689

2033 $328,057 $1,334,762 24.6 % High 3.00 % $194,763 $0 $3,035 $246,628

2034 $279,228 $1,356,812 20.6 % High 3.00 % $200,606 $422,100 $3,503 $483,749

2035 $421,688 $1,142,370 36.9 % Medium 3.00 % $206,624 $0 $4,783 $97,767

2036 $535,329 $1,326,350 40.4 % Medium 3.00 % $212,823 $0 $5,262 $235,812

2037 $517,602 $1,381,174 37.5 % Medium 3.00 % $219,208 $0 $4,760 $306,778

2038 $434,791 $1,372,286 31.7 % Medium 3.00 % $225,784 $0 $3,916 $315,719

2039 $348,773 $1,361,892 25.6 % High 3.00 % $232,557 $0 $2,755 $381,722

2040 $202,363 $1,291,412 15.7 % High 3.00 % $239,534 $0 $1,670 $311,692

2041 $131,875 $1,299,403 10.1 % High 3.00 % $246,720 $0 $2,222 $68,117

2042 $312,700 $1,567,225 20.0 % High 3.00 % $254,122 $0 $2,730 $336,102

2043 $233,449 $1,576,027 14.8 % High 3.00 % $261,745 $0 $2,168 $296,991

2044 $200,372 $1,634,616 12.3 % High 3.00 % $269,598 $0 $1,528 $366,097

2045 $105,401 $1,633,301 6.5 % High 3.00 % $277,686 $0 $1,587 $172,581

2046 $212,092 $1,841,069 11.5 % High 3.00 % $286,016 $0 $2,402 $231,947

2047 $268,563 $2,004,019 13.4 % High 3.00 % $294,597 $0 $3,699 $95,292

2048 $471,567 $2,323,011 20.3 % High 3.00 % $303,435 $0 $4,535 $343,705


of 1




Swim Center 2019-20 Budget and Reserve Disclosures

The Nellie Gail Ranch Swim Center has a total of $429,298 in actual accumulated Reserve funds as of June 30, 2019. It is anticipated that the amount will decrease to $419,833 by the end of the current fiscal year. According to the Reserve Analyst, the total replacement cost for all Swim Center major components is $597,350. The Reserve Analysis reflects Nellie Gail Ranch Swim Center will be 109.9% funded to the ideal funding level at the start of the upcoming fiscal year. That number represents the amount Nellie Gail Ranch is anticipated to have on hand to repair or replace major components when they are scheduled to be repaired or replaced.

The current Reserve fund amount represents 70% of the projected total replacement cost. Although this percentage may appear low, it merely reflects how much it would cost the association to rebuild all of its major common area components if they were replaced all at once.

Budget Attachments: Swim Center Pro Forma Budget for the 2019-20 Fiscal Year Swim Center Assessment and Reserve Funding Disclosure Summary

NELLIE GAIL RANCH OWNERS ASSOCIATION Swim Center


Page 1 of 2



REVENUE14121 OPERATING INTEREST REVENUE 250$ 1,000$ N14124 TENNIS/SWIM RENTAL 7,886$ 31,542$ N14404 NON-OWNER MEMBERSHIP DUES 6,625$ 26,500$ N14409 SWIM LESSONS 700$ 2,800$ N14400 MEMBERSHIP-SWIM 35,161$ 140,644$ N14405 SWIM POOL RENTAL 5,375$ 21,500$

TOTAL REVENUE 55,997$ 223,986$

OPERATING EXPENSES

LANDSCAPE MAINTENANCENS15500 CONTRACT LANDSCAPE SERVICE 636$ 2,542$ NS15502 LANDSCAPE REPLACEMENT 125$ 500$ NS15519 TREE TRIMMING 275$ 1,100$


SALARIES AND WAGESNS17200 PAYROLL 3,750$ 15,000$


PAYROLL RELATED EXPENSESNS17201 PAYROLL TAXES 287$ 1,148$ NS17202 MEDICAL/DENTAL INSURANCE 2,905$ 11,618$ NS17203 WORKMAN'S COMP 313$ 1,250$ NS17204 IRA - EMPLOYER 427$ 1,708$


ADMINISTRATIVENS19125 LIFEGUARD SERVICES 540$ 2,160$ NS19205 PERMITS/LICENSES 188$ 750$

TOTAL ADMINISTRATIVE 728$ 2,910$

INSURANCENS19107 INSURANCE 71$ 285$

TOTAL INSURANCE 71$ 285$

UTILITIESNS15100 CABLE TV 214$ 855$ NS15101 ELECTRICITY 7,125$ 28,500$ NS15102 GAS 8,000$ 32,000$ NS15106 WATER 1,563$ 6,250$ NS19317 PHONES 250$ 1,000$


NELLIE GAIL RANCH OWNERS ASSOCIATION Swim Center


Page 2 of 2



REPAIRS AND MAINTENANCENS15103 REFUSE COLLECTION 163$ 650$ NS16501 MAINTENANCE / REPAIRS 2,125$ 8,500$ NS16502 JANITORIAL EXPENSE 3,465$ 13,860$ NS16503 JANITORIAL SUPPLIES EXPENSE 725$ 2,900$ NS16504 POOL MAINTENANCE 7,635$ 30,540$ NS18526 PEST CONTROL 180$ 720$ NS18947 FACILITY MISC EXP 188$ 750$


RESERVE CONTRIBUTIONNS19701 PAINT RESERVE 1,330$ 5,320$ NS19790 OFFICE/RESTROOMS RESERVE 564$ 2,256$ NS19813 LIGHTING RESERVE 191$ 765$ NS19822 POOL/SPA RESERVE 6,790$ 27,160$ NS19838 WALLS & FENCES RESERVE 875$ 3,500$ NS19873 MISCELLANEOUS RESERVE 1,818$ 7,271$ NS19875 SOLAR PANELS RESERVE 723$ 2,892$ NS19876 POOL FURNISHINGS 2,559$ 10,236$


TOTAL EXPENSES 55,997$ 223,986$

SWIM CENTER NET INCOME/(LOSS) 0$ 0$



Nellie Gail Ranch - Swim Club, Laguna Hills










Total: $0.00


6) All computations/disclosures are based on the fiscal year start date of: 10/1/2019Fully Funded Balance (based on formula defined in 5570(b)4): $382,027Projected Reserve Fund Balance: $419,833Percent Funded: 109.9 %Reserve Deficit (surplus) on a mathematical avg-per-unit* basis: $-27From the 7/8/2019 Reserve Study by Association Reserves and any minor changes since that date.









%Increase



2019 $419,833 $382,027 109.9 % Low 0.00 % $59,400 $0 $4,241 $54,650

2020 $428,824 $399,379 107.4 % Low 5.00 % $62,370 $0 $3,971 $129,368

2021 $365,798 $342,158 106.9 % Low 5.00 % $65,489 $0 $3,497 $100,945

2022 $333,838 $314,417 106.2 % Low 5.00 % $68,763 $0 $3,544 $30,870

2023 $375,276 $360,001 104.2 % Low 5.00 % $72,201 $0 $3,774 $71,357

2024 $379,894 $367,288 103.4 % Low 5.00 % $75,811 $0 $3,806 $77,903

2025 $381,608 $370,150 103.1 % Low 5.00 % $79,602 $0 $4,090 $28,478

2026 $436,822 $426,169 102.5 % Low 3.00 % $81,990 $0 $4,206 $118,375

2027 $404,642 $393,502 102.8 % Low 3.00 % $84,449 $0 $4,101 $77,273

2028 $415,919 $404,485 102.8 % Low 3.00 % $86,983 $0 $4,373 $48,211

2029 $459,064 $448,093 102.4 % Low 3.00 % $89,592 $0 $5,000 $12,364

2030 $541,292 $532,367 101.7 % Low 3.00 % $92,280 $0 $5,313 $117,106

2031 $521,779 $513,791 101.6 % Low 3.00 % $95,049 $0 $4,920 $159,186

2032 $462,561 $453,898 101.9 % Low 3.00 % $97,900 $0 $3,899 $246,861

2033 $317,499 $304,563 104.2 % Low 3.00 % $100,837 $0 $3,434 $52,260

2034 $369,510 $353,926 104.4 % Low 3.00 % $103,862 $0 $4,096 $27,498

2035 $449,969 $433,096 103.9 % Low 3.00 % $106,978 $0 $4,959 $19,738

2036 $542,168 $525,541 103.2 % Low 3.00 % $110,187 $0 $5,569 $85,783

2037 $572,142 $555,726 103.0 % Low 3.00 % $113,493 $0 $6,034 $56,436

2038 $635,233 $620,128 102.4 % Low 3.00 % $116,898 $0 $6,601 $73,209

2039 $685,523 $672,361 102.0 % Low 3.00 % $120,405 $0 $7,335 $31,155

2040 $782,107 $772,747 101.2 % Low 3.00 % $124,017 $0 $7,748 $145,754

2041 $768,118 $761,477 100.9 % Low 3.00 % $127,737 $0 $7,369 $196,975

2042 $706,249 $700,581 100.8 % Low 3.00 % $131,569 $0 $7,178 $115,060

2043 $729,936 $725,806 100.6 % Low 3.00 % $135,517 $0 $7,465 $109,161

2044 $763,757 $761,545 100.3 % Low 3.00 % $139,582 $0 $6,515 $369,971

2045 $539,884 $533,514 101.2 % Low 3.00 % $143,769 $0 $6,046 $19,841

2046 $669,859 $663,182 101.0 % Low 3.00 % $148,083 $0 $6,742 $145,605

2047 $679,077 $671,225 101.2 % Low 3.00 % $152,525 $0 $7,314 $54,567

2048 $784,349 $777,423 100.9 % Low 3.00 % $157,101 $0 $7,725 $187,818


of 1




Tennis Center 2019-20 Budget and Reserve Disclosures

The Nellie Gail Ranch Tennis Center has a total of $532,383 in actual accumulated Reserve funds as of June 30, 2019. It is anticipated that the amount will decrease to $478,438 by the end of the current fiscal year. According to the Reserve Analyst, the total replacement cost for all Tennis Center major components is $887,800. The Reserve Analysis reflects Nellie Gail Ranch Tennis Center will be 102.3% funded to the ideal funding level at the start of the upcoming fiscal year. That number represents the amount Nellie Gail Ranch is anticipated to have on hand to repair or replace major components when they are scheduled to be repaired or replaced.

The current Reserve fund amount represents 54% of the projected total replacement cost. This percentage reflects how much it would cost the association to rebuild all of its major common area components if they were replaced all at once.

The Tennis Center Operating Budget reflects a net loss of $11,402 for the 2019-20 fiscal year. This amount will be offset by “surplus” Tennis Center operating account funds. The current Tennis Center Operating Fund Balance is $290,234 as of June 30, 2019 which represents eleven and one half months operating expenses. Budget Attachments: Tennis Center Pro Forma Budget for the 2019-20 Fiscal Year Tennis Center Reserve Funding Disclosure Summary

NELLIE GAIL RANCH OWNERS ASSOCIATION Tennis Center


Page 1 of 2



REVENUE14121 OPERATING INTEREST REVENUE 1,094$ 4,375$ N14133 TENNIS RENTAL REVENUE 2,500$ 10,000$ NT14300 MEMBERSHIP-TENNIS 69,432$ 277,727$

TOTAL REVENUE 73,026$ 292,102$

OPERATING EXPENSES

LANDSCAPE MAINTENANCENT15500 CONTRACT LANDSCAPE SERVICE 2,481$ 9,923$ NT15502 LANDSCAPE REPLACEMENT 250$ 1,000$ NT15519 TREE TRIMMING 1,125$ 4,500$


SALARIES AND WAGESNT17200 TENNIS PAYROLL 32,441$ 129,762$


PAYROLL RELATED EXPENSESNT 17201 PAYROLL TAXES 3,427$ 13,707$ NT17203 WORKMAN'S COMP 788$ 3,150$ NT17204 401K - EMPLOYER 346$ 1,382$


UTILITIESNT15100 CABLE TV 238$ 950$ NT15101 ELECTRICITY 9,225$ 36,900$ NT15102 GAS 925$ 3,700$ NT15106 WATER 925$ 3,700$ NT19317 PHONES 275$ 1,100$


REPAIRS AND MAINTENANCENT15103 REFUSE COLLECTION 158$ 630$ NT16503 JANITORIAL EXPENSE 1,625$ 6,500$ NT16504 GENERAL MAINTENANCE - CLUBHOUSE 625$ 2,500$ NT18526 PEST CONTROL 550$ 2,200$ NT18725 HVAC MAINT - HEATING/AIR 75$ 300$

TOTAL REPAIRS AND MAINTENANCE 3,033$ 12,130

RESERVE CONTRIBUTIONNT19701 PAINT RESERVE 1,320$ 5,280$ NT19702 CONCRETE GRIND / REPAIR 1,929$ 7,716$ NT19741 CLUBHOUSE RESERVE 3,720$ 14,880$ NT19790 OFFICE EQUIPMENT RESERVE 1,209$ 4,836$ NT19813 LIGHTING RESERVE 1,269$ 5,076$ NT19823 TENNIS COURTS RESERVE 4,734$ 18,936$

NELLIE GAIL RANCH OWNERS ASSOCIATION Tennis Center


Page 2 of 2



NT19838 WALLS & FENCES RESERVE 1,386$ 5,544$ NT19844 RESTROOMS RESERVE 2,916$ 11,664$ NT19873 MISCELLANEOUS RESERVE 1,173$ 4,692$ NT19875 SOLAR PANELS RESERVE 744$ 2,976$

TOTAL RESERVE CONTRIBUTION 20,400$ 81,600

TOTAL EXPENSES 75,876$ 303,504$

TENNIS CENTER NET INCOME/(LOSS) (2,851)$ (11,402)$



Nellie Gail Ranch - Tennis Club, Laguna Hills



Total Assessment Income: $0.00 $0.00 per: Month







Total: $0.00


6) All computations/disclosures are based on the fiscal year start date of: 10/1/2019Fully Funded Balance (based on formula defined in 5570(b)4): $467,775Projected Reserve Fund Balance: $478,438Percent Funded: 102.3 %Reserve Deficit (surplus) on a mathematical avg-per-unit* basis: $-8From the 7/8/2019 Reserve Study by Association Reserves and any minor changes since that date.









%Increase



2019 $478,438 $467,775 102.3 % Low 0.00 % $81,600 $0 $4,720 $98,800

2020 $465,958 $462,814 100.7 % Low 4.00 % $84,864 $0 $3,950 $230,463

2021 $324,309 $324,575 99.9 % Low 4.00 % $88,259 $0 $3,338 $72,247

2022 $343,659 $347,708 98.8 % Low 4.00 % $91,789 $0 $3,861 $10,490

2023 $428,818 $437,779 98.0 % Low 3.50 % $95,002 $0 $4,327 $91,279

2024 $436,868 $450,054 97.1 % Low 3.50 % $98,327 $0 $4,371 $101,958

2025 $437,607 $454,491 96.3 % Low 3.50 % $101,768 $0 $4,725 $36,239

2026 $507,860 $529,631 95.9 % Low 3.50 % $105,330 $0 $5,274 $71,087

2027 $547,378 $574,097 95.3 % Low 3.50 % $109,016 $0 $5,480 $112,869

2028 $549,004 $579,915 94.7 % Low 3.50 % $112,832 $0 $5,435 $128,781

2029 $538,490 $572,663 94.0 % Low 3.50 % $116,781 $0 $5,676 $63,702

2030 $597,246 $635,466 94.0 % Low 3.50 % $120,868 $0 $6,427 $35,921

2031 $688,620 $732,104 94.1 % Low 3.50 % $125,099 $0 $7,088 $91,177

2032 $729,630 $778,165 93.8 % Low 3.50 % $129,477 $0 $7,509 $93,766

2033 $772,851 $826,481 93.5 % Low 3.50 % $134,009 $0 $6,829 $320,140

2034 $593,549 $646,729 91.8 % Low 3.50 % $138,699 $0 $6,369 $57,801

2035 $680,817 $735,548 92.6 % Low 3.50 % $143,554 $0 $7,207 $70,366

2036 $761,211 $817,959 93.1 % Low 3.50 % $148,578 $0 $8,188 $40,908

2037 $877,070 $937,168 93.6 % Low 3.50 % $153,778 $0 $9,279 $60,521

2038 $979,606 $1,043,856 93.8 % Low 3.50 % $159,161 $0 $9,488 $229,446

2039 $918,808 $983,979 93.4 % Low 3.50 % $164,731 $0 $9,233 $164,266

2040 $928,507 $993,796 93.4 % Low 3.50 % $170,497 $0 $8,441 $347,131

2041 $760,313 $820,042 92.7 % Low 3.50 % $176,464 $0 $8,127 $79,135

2042 $865,769 $921,729 93.9 % Low 3.50 % $182,641 $0 $9,084 $105,784

2043 $951,709 $1,003,777 94.8 % Low 3.50 % $189,033 $0 $8,172 $465,611

2044 $683,302 $722,564 94.6 % Low 3.50 % $195,649 $0 $7,217 $125,417

2045 $760,751 $788,363 96.5 % Low 3.50 % $202,497 $0 $8,058 $119,799

2046 $851,507 $867,122 98.2 % Low 3.50 % $209,584 $0 $9,464 $28,432

2047 $1,042,123 $1,047,706 99.5 % Low 3.50 % $216,920 $0 $11,172 $76,989

2048 $1,193,226 $1,189,210 100.3 % Low 3.50 % $224,512 $0 $11,461 $329,212


25211 Empty Saddle Drive Laguna Hills, CA 92653

949.425.1477 Phone – 949.425.1478 Fax www.nelliegailranch.org

OPTIONS FOR PAYMENT OF MEMBER DUES

1. Members may pay dues on an annual basis. There is a $20 discount for dues paid in full for the year, if paid on or before October 31, 2019. If this is your option of choice, upon receipt of your October 1st bill from First Service, please pay $1,728 (this includes the $20 discount). If you pay on an annual basis, you will only receive one bill from First Service for the year for Nellie Gail Ranch Homeowner’s dues. Payments made after October 31, 2019 will not be eligible for the $20 discount.

2. Homeowners may pay dues on a quarterly basis. The quarterly payment amount is $437

and is due October 1st, January 1st, April 1st and July 1st, and will be considered late after 30 days. First Service will send quarterly statements to owners who pay quarterly.

3. Homeowners may pay annual or quarterly dues online by visiting the First Service website at

www.fsresidential.com/california/home, and clicking the “Make A Payment” tab. There is a transaction fee for online credit card payments. E-check payments have no fee.

4. Homeowners who board horses at the Equestrian Center or participate in the tennis

programs will continue to be invoiced separately on a monthly basis for these services. 5. Nellie Gail Ranch office staff is available to assist and explain your payment options. Please

call 949-425-1477 for further assistance.

NELLIE GAIL RANCH OWNERS ASSOCIATION

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DELINQUENT ASSESSMENT COLLECTION POLICY

Effective: OCTOBER 1, 2019 Prompt payment of assessments by all owners is critical to the financial health of the Association and to the enhancement of the property values of our Association. Your Board of Directors takes very seriously its obligation under the CC&R’s and the California Civil Code to enforce the members’ obligation to pay assessments. The Board has adopted this Collection Policy in an effort to discharge that obligation in a fair, consistent, and effective manner. Therefore, pursuant to the CC&R’s and Civil Code, the following are the Association’s assessment collection practices and policies:

1. Regular quarterly assessments are due and payable on the 1st day of each quarter. A courtesy billing statement is sent each quarter to the billing address on record with the Association. However, it is the owner of record’s responsibility to pay each assessment in full each quarter regardless of whether a statement is received.

2. All other assessments, including, but not limited to, Special Assessments, Reimbursement Assessments, Reconstruction Assessments, and Capital Improvement Assessments are due and payable on the date specified by the Board in the notice of assessment.

3. Regular quarterly assessments and all other assessments (as defined in Paragraph 2) are collectively referred to herein as “Assessments”.

4. Assessments, late charges, interest and collection costs, including any attorneys’ fees, are the personal obligation of the owner of the property at the time the Assessment or other sums are levied.

5. Unpaid Assessments are delinquent 15 days after they are due.

6. A late charge of 10% will be charged for any Assessment that is not received on or before the 30th day of the first month of each quarter.

7. When Assessments become delinquent, the Association may, but is not required, to send a courtesy reminder notice to the owner of record for all outstanding charges on the owner’s account. (Assessments, late fees, interest, costs of collection, including attorneys’ fees). A fee of $25.00 may be charged for this notice.

8. Interest on the balance due will accrue at a rate not to exceed 10% per annum; commencing thirty (30) days after the Assessment becomes due.

9. At thirty (30) days past due, the association may invite owner(s) to a hearing for the purpose of revoking membership privileges. Those privileges can include access to common areas or facilities, services paid for by the association, and/or the member’s right to vote in association elections.

10. When an Assessment becomes more than two quarters or (180) days past due, the Association will send a pre-lien letter to each owner, as required by the Civil Code, by certified mail to the owner’s address of record. The owner will be charged $200 for the pre-lien letter, as well as title check fees and all costs to complete the transmittal of the letters.

11. If the owner fails to pay the amounts set forth in the pre-lien letter within 30 days of the date of that letter, a lien for the amount of any delinquent Assessments, late charges, interest and/or costs of collection, including attorneys’ fees, may be recorded against the owner’s property. The owner will be charged $250 for the lien as well as any processing fees and costs. A copy of the lien will be sent to each owner at his/her address of record via certified mail within ten (10) days of recordation thereof. After the expiration of thirty


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(30) days following recordation of the lien, the lien may be enforced in any manner permitted by law.

a. Prior to the recording of a Board authorized lien for delinquent Assessments, an owner who is delinquent has the right to participate in internal dispute resolution (“IDR”) pursuant to the “meet and confer” program in accordance with California Civil Code. Prior to recording a lien, the Board of Directors will approve such action by a majority vote of the Board of Directors.

b. Upon receipt of payment in full, that includes any late fees, interest, collection costs and/or attorneys’ fees, a Release of Lien will be recorded. Copies of the Release of Lien will be sent to all owners of record. A charge of $140 for this release will be levied against the owners account. A $25 recording service will be charged as applicable and as counties may charge from time to time. Such fees will be charged to the owners account.

12. If an owner is delinquent for thirty (30) additional days after the Notice of Delinquent Assessment (Lien) has been recorded, the Assessment collection matter will be referred to the Association’s attorney or collection agent, and the lien may be enforced by judicial or non-judicial foreclosure sale, or by money judgment at the Association’s option. An actual foreclosure sale of an owner’s property will not be conducted unless or until either; (a) the delinquent assessment amount totals One Thousand, Eight Hundred Dollars ($1,800) or more, excluding accelerated assessments and specified late charges and/or fees; or (b) the assessments are delinquent for more than twelve (12) months. [You could lose ownership of your property if a foreclosure action is completed. You will be responsible for significant additional fees and costs, including attorneys’ fees, if a foreclosure action is commenced against your property.] The decision to foreclose on a lien must be made by a majority of the Board of Directors in an Executive Session meeting and the Board of Directors must record their votes in the Minutes of the next open session Meeting of the Board. The Board must maintain the confidentiality of the delinquent owner(s) by identifying the matter in the Minutes by only the parcel number of the owner’s property. Prior to initiating any foreclosure sale on a recorded lien, the Association shall offer delinquent owners the option of participating in IDR or Alternative Dispute Resolution (“ADR”).

13. Nothing herein limits or otherwise affects the Association’s right to proceed in any other lawful manner to collect any delinquent sums owed to the Association.

14. The Association will charge a processing fee to the owner for a returned check.

15. A $25.00 recording service will be charged for the recording of the Notice of Delinquent Assessment (Lien) with the Country Recorder Office. All county recording fees are charged as applicable and as counties may charge from time to time. Such fees will be charged to the owners account.

16. In conformance with Government Code Section 27388.1, a $75 fee is collected at the time of recording documents including but not limited to Notice of Delinquent Assessment, Notice of Default, Release of Lien and Notice of Sale. These mandated fees are transferred to the County of Orange.

17. Any owner who is unable to pay Assessments will be entitled to submit a written request for a payment plan to be considered by the Board of Directors. The Board of Directors is not required to approve a payment plan. If a payment plan is approved, the Board of Directors may establish the terms of the payment plan. A payment plan request or approved payment plan will not impede the Board’s ability to vote for and record a lien.


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18. The mailing address for overnight payment of assessments is:

FirstService Residential California, LLC

15241 Laguna Canyon Rd

Irvine, CA 92618

NOTICE ASSESSMENTS AND FORECLOSURE

This notice outlines some of the rights and responsibilities of owners of property in common interest developments and the associations that manage them. Please refer to the sections of the Civil Code indicated for further information. A portion of the information in this notice applies only to liens recorded on or after January 1, 2003. You may wish to consult a lawyer if you dispute an assessment.

ASSESSMENTS AND FORECLOSURE

Assessments become delinquent 15 days after they are due, unless the governing documents provide for a longer time. The failure to pay association assessments may result in the loss of an owner’s property through foreclosure. Foreclosure may occur either as a result of a court action, known as judicial foreclosure, or without court action, often referred to as nonjudicial foreclosure. For liens recorded on and after January 1, 2006, an association may not use judicial or nonjudicial foreclosure to enforce that lien if the amount of the delinquent assessments or dues, exclusive of any accelerated assessments, late charges, fees, attorney’s fees, interest, and costs of collection, is less than one thousand eight hundred dollars ($1,800). For delinquent assessments or dues in excess of one thousand eight hundred dollars ($1,800) or more than 12 months delinquent, an association may use judicial or nonjudicial foreclosure subject to the conditions set forth in Article 3 (commencing with Section 5700) of Chapter 8 of Part 5 of Division 4 of the Civil Code. When using judicial or nonjudicial foreclosure, the association records a lien on the owner’s property. The owner’s property may be sold to satisfy the lien if the amounts secured by the lien are not paid. (Sections 5700 through 5720 of the Civil Code, inclusive)

In a judicial or nonjudicial foreclosure, the association may recover assessments, reasonable costs of collection, reasonable attorney’s fees, late charges, and interest. The association may not use nonjudicial foreclosure to collect fines or penalties, except for costs to repair common area damaged by a member or a member’s guests, if the governing documents provide for this. (Section 5725 of the Civil Code)

The association must comply with the requirements of Article 2 (commencing with Section 5650) of Chapter 8 of Part 5 of Division 4 of the Civil Code when collecting delinquent assessments. If the association fails to follow these requirements, it may not record a lien on the owner’s property until it has satisfied those requirements. Any additional costs that result from satisfying the requirements are the responsibility of the association. (Section 5675 of the Civil Code)

At least 30 days prior to recording a lien on an owner’s separate interest, the association must provide the owner of record with certain documents by certified mail, including a description of its collection and lien enforcement procedures and the method of calculating the amount. It must also provide an itemized statement of the charges owed by the owner. An owner has a right to review the association’s records to verify the debt. (Section 5660 of the Civil Code)

If a lien is recorded against an owner’s property in error, the person who recorded the lien is required to record a lien release within 21 days, and to provide an owner certain documents in this regard. (Section 5685 of the Civil Code)

The collection practices of the association may be governed by state and federal laws regarding fair debt collection. Penalties can be imposed for debt collection practices that violate these laws.


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• Fee Schedule

Service Fee(s)

Intent to Lien Letter with Title Check $200.00

Notice of Delinquent Assessment Lien $250.00

Intent to Foreclose Letter $50.00

Release of Lien (Notarized) $140.00

Foreclosure Package $300.00

Title Report $50.00

Recording Service $25.00

State SB2 Recording Fee $75.00

PAYMENTS

When an owner makes a payment, the owner may request a receipt, and the association is required to provide it. On the receipt, the association must indicate the date of payment and the person who received it. The association must inform owners of a mailing address for overnight payments. (Section 5655 of the Civil Code)

An owner may, but is not obligated to, pay under protest any disputed charge or sum levied by the association, including, but not limited to, an assessment, fine, penalty, late fee, collection cost, or monetary penalty imposed as a disciplinary measure, and by so doing, specifically reserve the right to contest the disputed charge or sum in court or otherwise.

An owner may dispute an assessment debt by submitting a written request for dispute resolution to the association as set forth in Article 2 (commencing with Section 5900) of Chapter 10 of Part 5 of Division 4 of the Civil Code. In addition, an association may not initiate a foreclosure without participating in alternative dispute resolution with a neutral third party as set forth in Article 3 (commencing with Section 5925) of Chapter 10 of Part 5 of Division 4 of the Civil Code, if so requested by the owner. Binding arbitration shall not be available if the association intends to initiate a judicial foreclosure.

An owner is not liable for charges, interest, and costs of collection, if it is established that the assessment was paid properly on time. (Section 5685 of the Civil Code)

MEETINGS AND PAYMENT PLANS

An owner of a separate interest that is not a time-share interest may request the association to consider a payment plan to satisfy a delinquent assessment. The association must inform owners of the standards for payment plans, if any exists. (Section 5665 of the Civil Code)

The board must meet with an owner who makes a proper written request for a meeting to discuss a payment plan when the owner has received a notice of a delinquent assessment. These payment plans must conform to the payment plan standards of the association, if they exist. (Section 5665 of the Civil Code)


Page 5 of 7

ASSIGNMENT OF RENTS

In the event that the Association files any action against an Owner for unpaid Assessments on Owner’s Unit, and said Unit is or becomes rented or leased at any time during the pendency of the action, the Association shall have the right, upon ex parte notice and application, to request that the Court order Owner to assign all rents due from the renter/lessor of said Unit to the Association until such time as all Assessment delinquencies are cured.

ALTERNATIVE DISPUTE RESOLUTION

5925. As used in this article:

(a) "Alternative dispute resolution" means mediation, arbitration, conciliation, or other non-judicial procedure that involves a neutral party in the decision making process. The form of alternative dispute resolution chosen pursuant to this article may be binding or nonbinding, with the voluntary consent of the parties.

(b) "Enforcement action" means a civil action or proceeding, other than a cross-complaint, for any of the following purposes:

(1) Enforcement of this title.

(2) Enforcement of the Nonprofit Mutual Benefit Corporation Law (Part 3 commencing with Section 7110) of Division 2 of Title 1 of the Corporations Code).

(3) Enforcement of the governing documents of a common interest development.

5930. (a) An association or an owner or a member of a common interest development may not file an enforcement action in the superior court unless the parties have endeavored to submit their dispute to alternative dispute resolution pursuant to this article. (b) This section applies only to an enforcement action that is solely for declaratory, injunctive, or writ relief, or for that relief in conjunction with a claim for monetary damages not in excess of the jurisdictional limits stated in the Code of Civil.

(c) This section does not apply to a small claims action.

(d) Except as otherwise provided by law, this section does not apply to an assessment dispute.

5935. (a) Any party to a dispute may initiate the process required by serving on all other parties to the dispute a Request for Resolution. The Request for Resolution shall include all of the following:

(1) A brief description of the dispute between the parties.

(2) A request for alternative dispute resolution.

(3) A notice that the party receiving the Request for Resolution is required to respond within 30 days of receipt or the request will be deemed rejected.

(4) If the party on whom the request is served is the owner of a separate interest, a copy of this article.

(b) Service of the Request for Resolution shall be by personal delivery, first-class mail, express mail, facsimile transmission, or other means reasonably calculated to provide the party on whom the request is served actual notice of the request.

(c) A party on whom a Request for Resolution is served has 30 days following service to accept or reject the request. If a party does not accept the request within that period, the request is deemed rejected by the party.

5940. (a) If the party on whom a Request for Resolution is served accepts the request, the parties shall complete the alternative dispute resolution within 90 days after the party initiating the request receives the acceptance, unless this period is extended by written stipulation signed by both parties.


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(b) Chapter 2 (commencing with Section 1115) of Division 9 of the Evidence Code applies to any form of alternative dispute resolution initiated by a Request for Resolution under this article, other than arbitration.

(c) The costs of the alternative dispute resolution shall be borne by the parties.

5945. If a Request for Resolution is served before the end of the applicable time limitation for commencing an enforcement action, the time limitation is tolled during the following periods: (a) The period provided in Section 5935 for response to a Request for Resolution. (b) If the Request for Resolution is accepted, the period provided by Section 5940 for completion of alternative dispute resolution, including any extension of time stipulated to by the parties pursuant to Section 5940.

5950. (a) At the time of commencement of an enforcement action, the party commencing the action shall file with the initial pleading a certificate stating that one or more of the following conditions is satisfied:

(1) Alternative dispute resolution has been completed in compliance with this article.

(2) One of the other parties to the dispute did not accept the terms offered for alternative dispute resolution.

(3) Preliminary or temporary injunctive relief is necessary.

(b) Failure to file a certificate pursuant to subdivision (a) is grounds for a demurrer or a motion to strike unless the court finds that dismissal of the action for failure to comply with this article would result in substantial prejudice to one of the parties.

5955. (a) After an enforcement action is commenced, on written stipulation of the parties, the matter may be referred to alternative dispute resolution. The referred action is stayed. During the stay, the action is not subject to the rules implementing subdivision (c) of Section 68603 of the Government Code.

(b) The costs of the alternative dispute resolution shall be borne by the parties.

5960. In an enforcement action in which fees and costs may be awarded pursuant to subdivision (c) of the court, in determining the amount of the award, may consider whether a party's refusal to participate in alternative dispute resolution before commencement of the action was reasonable.

5965. (a) An association shall annually provide its members a summary of the provisions of this article that specifically references this article. The summary shall include the following language:

"Failure of a member of the association to comply with the alternative dispute resolution requirements of the Civil Code may result in the loss of your right to sue the association or another member of the association regarding enforcement of the governing documents or the applicable law."

(b) The summary shall be provided either at the time the pro forma budget is distributed or in the manner prescribed in Section 5016 of the Corporations Code. The summary shall include a description of the association's internal dispute resolution process.

INTERNAL DISPUTE RESOLUTION

5915. Statutory Dispute Resolution Procedure

(a) This section applies in an association that does not otherwise provide a fair, reasonable, and expeditious dispute resolution procedure. The procedure provided in this section is fair, reasonable, and expeditious, within the meaning of this article.

(b) Either party to a dispute within the scope of this article may invoke the following procedure:


Page 7 of 7

(1) The party may request the other party to meet and confer in an effort to resolve the dispute. The request shall be in writing.

(2) A member of an association may refuse a request to meet and confer. The association may not refuse a request to meet and confer.

(3) The association's board of directors shall designate a member of the board to meet and confer.

(4) The parties shall meet promptly at a mutually convenient time and place, explain their positions to each other, and confer in good faith in an effort to resolve the dispute. The parties may be assisted by an attorney or another person at their own cost when conferring.

(5) A resolution of the dispute agreed to by the parties shall be memorialized in writing and signed by the parties, including the board designee on behalf of the association.

(c) A written agreement reached under this section binds the parties and is judicially enforceable if it is signed by both parties and both of the following conditions are satisfied:

(1) The agreement is not in conflict with law or the governing documents of the common interest development or association.

(2) The agreement is either consistent with the authority granted by the board of directors to its designee or the agreement is ratified by the board of directors.

(d) A member of the association may not be charged a fee to participate in the process.




ANNUAL POLICY STATEMENT

1. Designated Recipient. The name and address of the person designated to receive official communications to the association is as follows: Nellie Gail Ranch Owners Association Attention General Manager - Brian Mitchell 25211 Empty Saddle Drive Laguna Hills, CA 92653-5827

2.

Overnight Payment Of Assessments. The mailing address for overnight payment of assessments is Nellie Gail Ranch Owners Association, c/o FirstService Residential, P.O. Box 62053 Newark, NJ 07101-8060.

3. Right for Notice to Two Addresses. A Member may submit a request to have notices sent to up to two different specified addresses. Requests may be submitted to the Designated Recipient listed above.

4. General Notice Location. The location designated for posting of general notices is the Clubhouse Business Office front window located at 25211 Empty Saddle Drive, Laguna Hills, CA 92653-5827.

5. Right to Individual Delivery. Member’s may receive electronic delivery of general notices via e-mail upon submittal of Consent Form To Receive Electronic Delivery Of Documents to the Designated Recipient. Requests for electronic delivery of documents may be made to [email protected].

6. Right to Minutes. Member’s may receive copies of meeting minutes via e-mail upon notification to the Designated Recipient.

7. Rules Enforcement Policy. The governing documents CC&R Article II Owner’s Property Rights and CC&R Article VIII Architectural Control contain provisions for the right of the Association to establish uniform rules and regulations pertaining to the use of Common Area. Additionally, these sections of the governing documents set forth use restrictions and Member responsibilities. The Board of Directors establishes and publishes rules and regulations and enforces accordingly. Membership privileges may be suspended for unresolved violations of the governing documents.


Laguna Hills, CA 92653-5827

949.425.1477 -- 949.425.1478 Fax


ARCHITECTURAL

SUBMITTAL PROCEDURES

Adopted May 21, 2014

http://www.nelliegailranch.org/

Table of Contents

Article I – Architectural Review Committee Guidelines

Section 1 General Submission Procedures and Requirements

1.1. SUBMITTALS

1.2. INCOMPLETE SUBMISSIONS

1.3. MEETING TIMES

1.4. NOTIFICATION OF ADJOINING PROPERTY OWNERS

1.5. TIME PERIOD

1.6. APPLICATION FEES

1.7. SECURITY DEPOSITS

1.8. FORFEITURE OF COMPLETION DEPOSIT

1.9. TRAIL ACCESS AND COMMON AREA DEPOSIT

1.10. CITY BUILDING PERMITS AND COMPLIANCE

1.11. STOP WORK ORDERS

1.12. COMPLIANCE INSPECTION

1.13. DEVIATIONS FROM APPROVED PLANS

1.14. APPEAL OF ARCHITECTURAL DENIALS

1.15. ABANDONED PROJECT

1.16. EMERGENCY APPROVAL

1.17. DISCLAIMERS

1.18. CONSTRUCTION RULES

1.19. EXHIBITS

Section 1. General Submission Procedures and Requirements

All NEW construction or landscaping and all alterations to existing structures or

landscaping must be approved by the Architectural Review Committee PRIOR TO THE

START OF CONSTRUCTION. All applications are to be submitted to Nellie Gail

Ranch Owners Association administrative offices located at:


Laguna Hills, CA 92653-5827

949.425.1477 - phone

949.425.1478 - fax

Applications may be mailed or delivered to the administrative office. All requests for

Architectural Review Committee (ARC) approval must be made on the Nellie Gail

Architectural Application Form (Exhibit A).

1.1. SUBMITTALS

The submission requirements are outlined below, and can also be found in detail in the

Submittal Checklist (Exhibit B) and on the Nellie Gail website at www.nelliegailranch.org.

The following are required:

Two (2) sets of plans,

One (1) completed application form - Exhibit A,

Appropriate Review Fee and Completion Deposit.

Once plans have been approved, a digital copy of the approved plans will be

required for Association records.

Certified surveys are required for all new or replacement perimeter walls, fencing,

grading or any improvements on or near property lines, streets and easements or as

requested on a case by case basis.

1.1.1. Plans for STRUCTURES (New Residential Construction/Exterior Additions) shall

include the following as a minimum:

i. Site Plan & Grading Plan - must show property lines, setbacks, drainage; trail

easement lines, and any walls existing or proposed to be built.

ii. If property lines are in question a survey must be completed prior to submission

of plans.

iii. Exterior Elevation Drawings (Samples of colors, materials, roofing, height

(maximum 35 ft).

iv. Any other information requested for clarification by the Committee.

1.1.2. Plans for landscaping (Plants & Hardscape) and auxiliary structures/equestrian

facilities/sports courts shall include the following as a minimum:

i. Site Plan & Grading Plan - Show setbacks, drainage, easement lines, property


lines, and any walls existing or proposed to be building with material, color and

height (maximum 6 feet).

ii. Planting Plans - Must indicate plant names, sizes, and location. Plans should also

state the following: “All Planted Areas To Be Automatically Irrigated.”

iii. Hardscape Plans - Must indicate all types of materials to be used such as colors,

along with pictures of planters, walls, fountains, pools, fireplaces, or other objects

that will be integrated into the hardscape plan.

iv. Exterior Elevation Drawings - Required for above ground structures such as the

main house, fencing, auxiliary structures, patio covers, gazebos, pool houses,

work rooms, equestrian facilities and the like. Plans must also indicate materials

to be used, colors, and roofing material.

v. Any other information requested for clarification by the Committee.

*** Please note, all plans and specifications for Single Family Residences and Auxiliary

Structures must be prepared by an architect, engineer or building designer - licensed or

certified as such under the laws of the State of California

1.2. INCOMPLETE SUBMISSIONS

To avoid unnecessary delays and expense, the ARC shall not accept any incomplete

submittals for consideration. Incomplete submittals shall be returned to the applicant along

with a copy of the checklist noting the areas of deficiency.

1.3. MEETING TIMES

The ARC meets monthly at the administrative office located at 25211 Empty Saddle Dr.

Meeting dates and times can be obtained from the administrative office or Association

website. In order to be included on the ARC agenda, you must have your submissions into

the administrative office by the last business day of the month preceding the regularly

scheduled ARC meeting. In consideration of other applicants, the committee tries to limit

each presentation to five minutes. The applicant should submit all information necessary to

convey the design intent in addition to the minimum requirements outlined in the Submittal

Checklist exhibit.

1.4. NOTIFICATION OF ADJOINING PROPERTY OWNERS

A postcard will be sent to the impacted neighbors via USPS by the Association staff. The

properties under review for the month will be posted on the Nellie Gail website. Impacted

neighbors will be determined by the homeowner and confirmed by the Association’s

consulting architect. In addition, the Association will post a sign on the front and/or rear of

the property under architectural review, for a minimum of one (1) week. The homeowner

will be responsible for returning the sign. The cost for unreturned signs will be deducted

from the architectural deposit. Signs placed on the property must be returned on or after the

review date. If signs are not returned by the date of final inspection, a maximum charge of

$100 per sign may be deducted.

1.5. TIME PERIOD

The Committee shall consider and provide a written response to all completed applications

within thirty (30) days after the plans and specifications have been submitted to the

committee. Please allow adequate time between the approval and start of the project in case

the Committee requests additional information.

If delays in commencement or completion are encountered, the Applicant must make a

written request for an extension of the approval, citing the reasons for the delay and the

approximate time for continuing the project. Unless extensions are granted in writing,

substantial construction must start within 120 days from approval and be entirely

completed within 365 days from approval. If a project has not commenced within 120 days

after approval, the application becomes null and void and must be resubmitted for

approval. Extensions may be granted if requested in writing to the ARC and if granted in

writing by the ARC. Extensions will be granted at the discretion of the ARC.

1.6. APPLICATION FEES

Applications are available at the administrative office, or can be obtained on the Nellie

Gail website. A non-refundable application fee will be required prior to review by the

ARC. The purpose of this fee is to cover the cost of the consultant architect who is here to

help you with your application submittal.

The application fee covers the cost of one submittal and one resubmittal. For all subsequent

reviews by our paid consultants, the applicant will be charged additional fees unless

circumstances warrant a waiver of fees. Fees may be waived for minor changes per plan

such as changing colors, as per the ARC's discretion.

For a breakdown of the fees, please see the Fee Schedule (Exhibit C, adopted April 16,

2014), also available at the administrative office or the Nellie Gail website.

1.7. COMPLETION DEPOSIT

A refundable completion deposit may be required upon application submittal. Upon

receipt of the Notice of Completion and the ARC site inspection showing conformance to

the approved plans, and restoration of any damaged Association common area, Nellie Gail

will refund the deposit. The completion deposit may be withheld until an Owner provides

the Association with a digital copy of approved plans and notification signs. Return of the

completion deposit may be forfeited or reduced as described in Section 1.8 below.

Deposit amounts are noted on the Architectural Fee and Completion Deposit Schedule

(Exhibit C, April 16, 2014)

1.8. FORFEITURE OF COMPLETION DEPOSIT

The following reasons will result in forfeiture of the completion deposit.

a. Damage to Association-owned or maintained property. In the event that damage is

caused to Association property / easement, the Association shall repair the property at

issue and withhold the cost of such repair from the security deposit. If the cost of the

repair exceeds the amount of the security deposit, then the Owner shall pay the balance

within fifteen (15) days of notification of payment due.

b. Failure to complete changes. In the event that any Owner fails to complete changes in

accordance with approved plans, the Association may withhold the security deposit.

The Association may, at its discretion, remedy the noncompliance and if the

completion deposit exceeds the cost for such work the Owner shall immediately

reimburse the Association the costs incurred.

c. Failure to provide a digital copy of approved architectural plans.

d. Failure to return notification signs.

1.9. TRAIL ACCESS AND COMMON AREA DEPOSIT

In cases where access to the common area and/or trail is required, a trail deposit will be

required from Property Owner (Exhibit E). A certificate of insurance and indemnification

from the property owner and the contractor may be required. Arrangements must be made

with the Association Office PRIOR TO THE START OF CONSTRUCTION. In the event an

Owner fails to obtain the required permit for trail use, a cease and desist order may be issued.

Please refer to the Equestrian Trail Use Policy for further details regarding trail use, including

the deposit schedule.

1.10. CITY BUILDING PERMITS AND COMPLIANCE

Where applicable, Association approval is contingent upon obtaining City and other

governmental approvals and permits. Building permits from the appropriate governing

agency are required on many improvements, and it is the responsibility of the homeowner to

secure any required permits prior to starting a project.

Approval of any improvement by the ARC shall not constitute approval by or compliance

with ordinances, regulations and policies of the City. Similarly, approval of any

improvement by the City shall not constitute approval of such improvement by the ARC.

1.11. STOP WORK ORDERS

Any construction that has been started without prior ARC approval or work that is not

adhering to any approved plan or conditions of approval will be subject to a STOP WORK

ORDER. No further work shall be performed, other than safety measures, until ARC

approval has been obtained. The property owner will be charged a fee for changes or

revisions to projects undertaken without ARC approval.

1.12. COMPLIANCE INSPECTION

In accordance with Article VIII, Section 4 of the CC&Rs, upon completion of any

construction, reconstruction, alteration or refinishing of the exterior of any improvement, or

upon the completion of any other work for which approved plans were acquired, the Owner

shall provide written notification to the ARC. Such written notification shall be provided

within thirty (30) days of completion using the Notice of Completion form (Exhibit F).

Within sixty (60) days after receipt of Notice of Completion (Exhibit F), the ARC, or its

designated representative, may inspect the improvement to determine whether the

improvement was constructed, reconstructed, altered or finished in substantial accordance

with the approved plans.

If the ARC finds that such construction, reconstruction, alteration or refinishing was not

performed in substantial compliance with the approved plans, the ARC shall notify the Owner,

in writing, of such noncompliance within the sixty (60) day period.

Owner shall remedy any noncompliance within thirty (30) days of notification of

noncompliance by the ARC.

The Association, during its design review process may access public information, such as

Virtual Earth™ or Google Earth™, to assist in its evaluation.

Failure to obtain the necessary approval from the Nellie Gail Ranch Owners Association for

work begun or completed will constitute a violation of the Declaration of Covenants,

Conditions, and Restrictions and may require modifications or removal of work at the

expense of the homeowner.

1.13. DEVIATIONS FROM APPROVED PLANS

Any changes to approved plans must be resubmitted to the ARC. If, after plans and

specifications have been approved, the improvements are altered, erected or maintained upon

the Lot other than as approved by the ARC, such alteration, erection and maintenance shall

be deemed to have been undertaken without the approval of the ARC and shall be

unapproved. The property owner will be charged a fee for changes or revisions to projects

undertaken without ARC approval.

1.14. APPEAL OF ARCHITECTURAL DENIALS

In accordance with the California Civil Code, any denial of the Committee may be appealed

to the Association’s Board of Directors for reconsideration. Any appeal of an architectural

denial must be made by the affected owner within thirty (30) days of the date the denial is

dated. An application for appeal is made only by filling out an “Application for Appeal of

Architectural Denial” form (Exhibit G), which may be obtained from the adminstrative office

or the Nellie Gail website.

An Application for Appeal shall be heard at the Board Meeting following submission, so

long as the Application is received at least ten (10) days prior to the date of the meeting.

Otherwise, the Application will be considered at the following Board Meeting. In any event,

the decision of the Board of Directors in response to any Application for Appeal shall be

provided within forty-five (45) days of the date such request is considered by the Board.

The requesting owner is encouraged to attend the Board Meeting at which the Appeal is

being considered. In the event the requesting owner cannot attend the Board Meeting, then

the owner is encouraged to provide the Board with a written description of the reasons why

the Application for Appeal should be granted.

1.15. ABANDONED PROJECT

A project which is partially completed and stopped for any reason is subject to forfeiture of

the completion deposit, unless the applicant contacts the Association and submits plans for

"standing still" the property in order to protect the surrounding properties from erosion or

damage or unsightly conditions. Such work shall begin immediately upon approval of

plans by the ARC. This approval will be good for (90) days; with extensions granted at the

discretion of the ARC.

1.16. EMERGENCY APPROVAL

Emergency approval may be granted for applications related to the safety of people or

property, e.g. roofs, windows and doors. Fees for expedited review, if any, will be the

responsibility of the property owner.

1.17. DISCLAIMERS

Only improvements depicted on the plans can be reviewed by the ARC. The Owner is

responsible to ensure all improvements are depicted on the plans submitted. Any

improvements not depicted on the plans are not approved.

Any modification to the Common Area, including equestrian trails, is strictly prohibited.

Owner is responsible to ensure that all improvements are made on the Lot and not on

Association property or easements. Owner shall be responsible for removal or alteration of

improvements located on Association property or easements.

In the event that the City requires modifications to the plans and specifications previously

approved by the Committee, the Owner shall submit to the Committee all modifications to

the plans. The Committee shall have the right to review and impose further conditions on

such modifications which are not inconsistent with the requirements imposed by the City.

The Committee shall have the right to impose conditions of approval of proposed

Improvements which are more restrictive than conditions as may be imposed by the City.

1.18. Construction Rules

No construction signs shall be displayed on any residence. Tradesmen’s, contractors, and

installers signs of any type, including the signs identifying the residence as the site of their

activities or operations are prohibited.

Construction activities shall be made in accordance with City ordinances.

1.19. EXHIBITS

The following exhibits are available for your convenience on the Nellie Gail website at

www.nelliegailranch.org or at the Nellie Gail administrative office:

Exhibit A – Architectural Application Form

Exhibit B – Submittal Checklist (Minimum Requirements)

Exhibit C – Architectural Fee and Completion Deposit Schedule

Exhibit D – Flow Chart

Exhibit E – Trail Permit Application

Exhibit F– Notice of Completion Form

Exhibit G – Appeal of ARC Denial


Adopted July 16, 2014


Architectural Application Form

(Exhibit A)

Fee:$ Deposit:$ _ (2 separate checks) Today’s Date:

Owner/Applicant’s Name:

Property Address:

Mailing Address (if different than property address):

Phone: E-mail:

Contractor/Architect Name & phone number:

Scope of work (Please check appropriate items):

Roof Landscape Front Rear Play Equipment

Painting Hardscape Front Rear Pool & Equipment

Gate (s) Door(s) – Garage, Front, Patio Spa & Equipment

Patio Cover / Gazebo Irrigation/Drains Lighting

Deck Sports/Basketball Court Barbeque

Fence(s) Tennis Court Fire Pit

Wall(s) Gazebo/Shade Structure Outdoor Kitchen

Window(s) Addition to House > 300 sq ft Driveway

Solar Panels Addition to House < 300 sq ft Barn

Walkway Tree Removal Fire Place

Auxiliary Structure View Issue Corral

Other:

Please submit two (2) sets of plans, with applicable fee/deposit (2 separate checks) to the

Association office at 25211 Empty Saddle Drive.

Once plans have been approved, a digital copy of the approved plans will be required for

Association records.

Owner’s Signature

Adopted July 16, 2014

NOT ACCEPTED WITHOUT PLANS, APPLICABLE INFO AND FEE(S).

General Conditions and Disclaimers:

1. Once plans have been approved, a digital copy of the approved plans will be required for Association records.

2. ARC approval does not waive or constitute or reflect compliance with any federal, state, or local law,

ordinance, or code.

3. ARC approval does not constitute acceptance of any technical or engineering specifications; and the

Association assumes no responsibility for such. The property owner is responsible for all technical and

engineering specifications. The ARC reviews for aesthetic purposes only.

4. Any oversight of a provision of the CC&Rs, or a provision of the Architectural Guidelines, does not waive the

rule. Corrections may be required. Only improvements depicted on the plans can be reviewed by the ARC.

The Owner is responsible to ensure all improvements are depicted on the plans submitted. Any

improvements not depicted on the plans are not approved.

5. Building permits from the appropriate governing agency are required on many improvements. Owners are

responsible to secure any required permits prior to starting a project.

6. Approval of plans is not authorization to proceed with improvements on any property other than the property

reviewed by the ARC and owned by the Applicant.

7. Substantial construction must start within 120 days of approval and be entirely completed within 365 days of

approval. If a project has not commenced within 120 days after approval, the application becomes null and

void and must be resubmitted for approval. Extensions may be granted if requested in writing to the ARC and

if granted in writing by the ARC. Extensions will be granted at the discretion of the ARC.

8. Applicant understands and agrees that Applicant must comply with all of the provisions of the

Architectural Guidelines and specifications of plans.

9. The applicant has read and understands all provisions of the Architectural Guidelines and CC&Rs and agrees

to comply therewith.

10. In the event that the City requires modifications to the plans and specifications previously approved by the

ARC, the Owner shall submit to the ARC all modifications to the plans. The ARC shall have the right to

review and impose further conditions on such modifications which are not inconsistent with the requirements

imposed by the City. The ARC shall have the right to impose conditions of approval of proposed

improvements which are more restrictive than conditions as may be imposed by the City.

11. The use of property owned and/or maintained by the Association for construction access or storage is

not permitted, unless authorized in writing by the Association. A $500 Trail Permit Deposit for repairs of

damage will be REQUIRED from any Owner who needs access or temporary encroachment on any

equestrian easement or common area for construction purposes. Arrangements must be made with the

Association Office PRIOR TO THE START OF CONSTRUCTION. The applicant may be required to

sign an indemnification agreement for damage.

12. Meetings with the ARC are intended to provide an Applicant opportunity to explain the modifications and

answer questions the ARC may have with the application. Dialogue between the Applicant or Applicant’s

representative and the ARC must be professional and courteous. Behavior that is deemed by the ARC to be

hostile, abusive or unprofessional may result in the termination of the meeting and require that all future

communication be in writing, rather than at a meeting.

The approval SHALL NOT be held to permit any violation of federal, state or local regulations.

PROPERTY OWNER CERTIFICATION: I have read and understood the above.

Name_ Signature

Property Address Tract # Lot # Date


Laguna Hills, CA 92653-5827 949.425.1477

Page 1 of 4 Adopted 4/2014

Submittal Checklist (Minimum Requirements)

(Exhibit B)

Roofing/ Skylights / Solar Panels:

Completed application

Fee payment

Deposit payment

Two (2) sets of the following: o Sample or color photos and literature of roofing materials o If adding skylights, provide literature describing and illustrating the skylights. Provide an

accurately scaled roof plan showing the exact size and location of the skylights. o If providing solar panels, provide literature describing and illustrating the solar panels.

Provide and accurately scaled plan showing the location of the proposed panels.

Window Replacement (different style):


Fee payment

Deposit payment

Two (2) sets of the following: o Sample or color photos and literature of window / door materials clearly identified o Floor Plan showing the location of proposed window replacement

Painting (different color):


Fee payment

Deposit payment

Two (2) sets of the following: o Paint chip samples describing where paint will be used (trim, siding, door, etc.) o Exterior photos identifying where color will be applied or digitally rendered photo using

coloring software

Landscape / Hardscape:


Fee payment

Deposit payment

Two (2) sets of the following: o An accurately scaled site plan illustrating the location of existing and proposed

improvements as well as the following:

1. Include a profile (illustrated on site plan) of applicants home as well as adjacent homes to clarify their proximity to proposed improvements

2. Include property line locations and top of slope location(s) 3. All proposed and existing sidewalks and planters 4. Description of materials to be used and where


Laguna Hills, CA 92653-5827 949.425.1477


5. Description and layout of proposed and existing plants and trees. The description should identify the full size of plants and trees at maturity

6. Existing and proposed sprinkler / irrigation system 7. Existing and proposed drainage system as well as current slope / drainage pattern and

grades. 8. Existing and proposed shade structure(s) 9. BBQ and or fire pit location and type 10. Trail easements 11. Lighting type and location

Shade Structure / Patio Roofs:


Fee payment

Deposit payment

Two (2) set of the following: o Description of materials to be used and where. o Accurately scaled and dimensioned elevations of the proposed and existing structures.

Existing structures may be illustrated with photos o Paint samples o An accurately scaled site plan illustrating the location of existing and proposed


1. Include a profile of applicants home as well as adjacent homes to clarify their proximity to proposed improvements.

2. Include property line locations and top of slope location(s). 3. Trail easements 4. Lighting type and location

Fences / Stalls / Corrals:


Fee payment

Deposit payment

Two (2) set of the following: o Description of materials to be used and where. o Accurately scaled and dimensioned elevations or brochure illustrations of the proposed

and existing fences. Existing fences may be illustrated with photos. o Paint or stain samples if the fence is to be painted or stained. o An accurately scaled site plan illustrating the location of existing and proposed



2. Include property line locations and top of slope location(s) 3. Trail easements 4. Proposed and existing retaining walls, fences and gates 5. Lighting type and location


Laguna Hills, CA 92653-5827 949.425.1477


New Homes / Additions / Remodels / Exterior Modification:


Fee payment

Deposit payment

Two (2) set of the following: o Description of materials to be used and where. o Accurately scaled and dimensioned elevations of the proposed and existing structures.

Existing structures may be illustrated with photos. o Grading Plan o An accurately scaled site plan illustrating the location of existing and proposed



2. Include property line locations and top of slope location(s). 3. Trail easements 4. Retaining walls, fences and gates 5. Existing and proposed drainage system as well as current slope / drainage pattern and

grades. 6. Lighting type and location

Pools, Spas and Water Features:


Fee payment

Deposit payment

Two (2) set of the following: o Description of materials to be used and where. o Accurately scaled and dimensioned pool / spa plans. o Accurately scaled and dimensioned elevations of proposed and existing structures to

support the new pool or spa. Existing structures may be illustrated with photos. o Color, composition and height of new fences or walls o Pump and filter data and noise control measures o Calculations and geological reports o Grading Plan o An accurately scaled site plan illustrating the location of existing and proposed



2. Pool and Spa location 3. Include property line locations and top of slope location(s) as applicable. 4. Location and height of new walls or fence required to support the pool installation. 5. Pump and filter equipment location and noise rating 6. Solar panels or collectors 7. Lighting type and location 8. Trail easements


Laguna Hills, CA 92653-5827 949.425.1477


Sports Equipment and Courts:


Fee payment

Deposit payment

Two (2) set of the following: o Description of materials to be used and where. o Accurately scaled and dimensioned site plans showing the proposed location o Accurately scaled and dimensioned elevations of proposed and existing structures to

support the equipment / court. Existing structures may be illustrated with photos. o Color, composition and height of new fences or walls o Grading Plan o An accurately scaled site plan illustrating the location of existing and proposed



2. Equipment / Court location 3. Include property line locations and top of slope location(s) as applicable. 4. Location and height of new walls or fence required to support the equipment / court

installation. 5. Lighting type and location 6. Trail easements

External Antennae and Satellite Dishes:


Fee payment

Deposit payment

Two (2) set of the following: o Description of equipment to be used o Accurately scaled and dimensioned elevations of proposed and existing structures to

support the new equipment. Existing structures may be illustrated with photos. o An accurately scaled site plan illustrating the location of existing and proposed



2. Equipment location

Note: Certified surveys will be required for all perimeter walls, fencing, grading or any improvements on or near property lines, streets and easements or on a case by case basis.

G:\Association\Architectural Guideline Changes\Arch Guidelines PROCEDURES\ARC Procedures Docs\Exhhibit C - Fee Schedule 4-2014.doc

Nellie Gail Ranch Owners Association

Architectural Fee & Deposit Schedule (Exhibit C) Adopted April 16, 2014

Submittal Category Application Fee Refundable

Deposit *

Fast Track - “Like for Like” replacement of doors, windows, painting, roof, etc. (excludes perimeter walls and fences).

Removal of trees over 30’. (See note #4) Notification and photos submitted to Association before any work.

$0 $0

Level 1

Minor modification or replacement of any one (1) of the following: garage doors, window replacements, roof

replacements, change of paint color, front door, solar panels, play structures, artificial turf, mailbox, etc.

$100 $250

Level 2

Moderate hardscape or landscape modification of up to one (1) item: BBQ, pool, spa, fire pit, fireplace, planters, patio,

deck, etc. or a combination of any two items (2) from Level 1.

$200 $500

Level 3

Intermediate landscape, or hardscape, or home improvement modifications of up to two (2) items: Patio, corral, sport

court, outdoor kitchen, entertainment area, new fence/wall, retaining walls, or any two (2) items from Level 1 or 2.

$500 $1,000

Level 4

Intermediate Architectural or Major Landscape – To include either one auxiliary structure (i.e. barn, cabana, outdoor

kitchen, pool house, etc.), or up to three (3) of the following intermediate modifications: gazebo, patio, shade structure,

corral, driveway/walkway, retaining walls, room addition less than 300 square feet, etc., or any three (3) items from

Level 1, 2 or 3.

$750 $2,500

G:\Association\Architectural Guideline Changes\Arch Guidelines PROCEDURES\ARC Procedures Docs\Exhhibit C - Fee Schedule 4-2014.doc

Submittal Category Application Fee Refundable

Deposit *

Level 5

Major Architectural – Both front and rear yard hardscape and landscape modifications, new homes or additional floor

area in excess of 300 square feet.

$2,000 $5,000

Consultation with architect or mid project review of changes to determine general conformance with Committee

approval will be charged at an hourly rate of $165/hr.

Note:

1. Application fee includes two reviews by the ARC. If additional reviews are necessary an additional fee of $165/hr may be charged.

2. Notification signs placed on the property must be returned on or shortly after the review date. If signs are not returned by the date of final inspection, a maximum charge of $100 per sign may be deducted from the deposit.

3. If required, an additional fee for digitizing large format plans (i.e. larger than 11x17) will be deducted from the deposit. 4. Removal of trees over 30’ can be approved by the General Manager. If the General Manager feels that committee review is

required, the project will be placed on the next regular meeting. * Deposit maybe forfeited if the approved project is not completed within 365, days unless an extension is granted by the ARC.

Adopted 5/2014

TRAIL PERMIT APPLICATION

(Exhibit E)

Trail Permit #:

Home Owner Name:

Home Owner Address:

Home Owner Phone#: Cell#: Other#:

Company Name:

Company Contact Person:

Company Phone#: Cell#: Other#:

Work Being Done: ________________________________________________________________

________________________________________________________________

Type of Vehicle: Make: Model: Color:

Vehicle License Plate:

Auto Insurance Company: Policy#:

Copy of Insurance Card Received: (Yes) (No)

Copy of Driver’s License Received: (Yes) (No)

Security Deposit Received: (Yes) (No) (check) (cash)

Amount

OWNER/PERMIT HOLDER IS RESPONSIBLE FOR ANY DAMAGE AND REPAIRS TO

ASSOCIATION TRAILS FOLLOWING USE AND AGREES THAT THE ASSOCIATION MAY

USE THE DAMAGE DEPOSIT TO EFFECT REPAIRS IN THE EVENT THAT OWNER/PERMIT

HOLDER FAILS TO UNDERTAKE AND COMPLETE REPAIRS TO THE SATISFACTION OF

THE ASSOCIATION. TRAIL PERMIT MAY BE REVOKED AT ANY TIME.

________________________________________ ________________________

Signature Date




Adopted 5/2014

NOTICE OF COMPLETION

Inspection of Work (CC&R Article VIII, Section 4)

(Exhibit F)

Date:

Homeowner Name:

Address:

Tract and Lot # Phone:

Modification(s):

Completed Per Approval: I hereby notify the Architectural Review Committee of the Nellie Gail Ranch

Owners Association that the above referenced improvement was completed in conformance with the plans

and specifications approved by the Architectural Review Committee.

Not Completed Per Approval: I hereby notify the Architectural Review Committee of the Nellie Gail

Ranch Owners Association that the above referenced improvement was not completed in conformance with

the plans and specifications approved by the Architectural Review Committee.

Explanation:

Homeowner Signature _________________________________ Date ______________________

--------------------------------------------Do Not Write Below This Line ---------------------------------------

Inspected by: _________________________________________ Date _____________________

ARC Review: ________________________________________ Date ______________________

Deposit Status: Return Do Not Return

Adopted 5/2014


APPLICATION FOR APPEAL OF ARC ARCHITECTURAL DENIAL

(Exhibit G)

The undersigned Owner, by completion of this form, hereby requests that the Association’s Board of Directors reconsider the denial of certain

architectural improvements by the Architectural Review Committee (“ARC”), as described below.

1. Printed Name(s) of Owner(s): ___________________________

2. Street Address: ___________________________

Laguna Hills, CA

3. Summary of Prior Architectural Submittals:

(a) Date of Original Submittal: _____________________

(b) Total Number of Submittals: _____________________

(c) Date of Submittal Being Appealed: _____________________

(d) Date of Denial by ARC: ____________________

4. Copies of Application Information:

I have included copies of all of the following for the denial that is being

appealed:

[__] Copy of original architectural application;

[__] Copy of Architectural Review Committee denial;

[__] Copy of most recent architectural plans;

[__] Letter explaining in detail the portion of the ARC denial that

you are appealing and explaining the reasons for reversal of the decision. (Please understand that the Board of Directors needs to

understand specifically those improvements that the requesting member wishes the Board to reconsider and approve.)

Date: ____________________

___________________________________________________

SIGNATURE(S) OF OWNER(S)

LaBarre / Oksnee Insurance

Page 1 of 2

NELLIE GAIL RANCH OWNERS ASSOCIATION INSURANCE SUMMARY DISCLOSURE

Pursuant to Section 5300 (b)(9) of the California Civil Code, Nellie Gail Ranch Owners Association is providing the following information regarding its insurance policies. Pursuant to Civil Code Section 5300 (a), this summary is being distributed not less than 30 days nor more than 90 days preceding the beginning of the Association’s fiscal year.

GENERAL LIABILITY INSURANCE Name of Insurer: Philadelphia Insurance Co. Policy Limits: $1,000,000 Bodily Injury & Property Damage, $2,000,000 aggregate Amount of Deductible: No Deductible Umbrella Coverage: $15,000,000 Umbrella Carrier: Greenwhich Insurance Company Policy Dates: 09/01/2019 – 09/01/2020 PROPERTY INSURANCE (100% Replacement Cost) Name of Insurer: Philadelphia Insurance Co. Policy Limits: $3,559,001 Amount of Deductible: $10,000 Policy Dates: 09/01/2019 – 09/01/2020 FIDELITY BOND INSURANCE Name of Insurer: Liberty Mutual Insurance Policy Limits: $4,000,000 – Includes Computer Fraud Amount of Deductible: $25,000 Policy Dates: 09/01/2019 – 09/01/2020 SADDLE LIABILITY Name of Insurer: American Reliable Insurance Policy Limits: $1,000,000; $100,00 CC&C/Horse; $300,000 CC&C Aggregate Amount of Deductible: No Deductible Policy Dates: 09/01/2019 – 09/01/2020 EXCESS SADDLE LIABILITY Name of Insurer: American Reliable Insurance Policy Limits: $5,000,000 Amount of Deductible: No Deductible Policy Dates: 09/01/2019 – 09/01/2020

LaBarre / Oksnee Insurance

Page 2 of 2

EXCESS PROPERTY – BARNS & STABLES Name of Insurer: Scottsdale Insurance Policy Limits: $880,000 Amount of Deductible: $10,000 Policy Dates: 09/01/2019 – 09/01/2020 DIRECTORS & OFFICERS Name of Insurer: RSUI Indemnity Policy Limits: $1,000,000 Amount of Deductible: $100,000 Policy Dates: 09/01/2019 – 09/01/2020 YOUTH SPORTS Name of Insurer: United States Fire Insurance Policy Limits: $10,000 D&D; $25,000 Medical Amount of Deductible: $100 Policy Dates: 09/01/2019 – 09/01/2020 This summary of the Association’s policies of insurance provides only certain information, as required by Section 5300 of the Civil Code, and should not be considered a substitute for the complete policy terms and conditions contained in the actual policies of insurance. Any Association member may, upon request and provision of reasonable notice, review the Association’s insurance policies and, upon request and payment of reasonable duplication charges, obtain copies of those policies. Although the Association maintains the policies of insurance specified in this summary, the Association’s policies of insurance may not cover your property, including personal property or real property improvements to or around your dwelling, or personal injuries or other losses that occur within or around your dwelling. Even if a loss is covered, you may nevertheless be responsible for paying all or a portion of any deductible that applies. Association Members should consult with their individual insurance broker or agent for appropriate additional coverage. Pursuant to Section 5810 of the California Civil Code, if the Association receives any notice of nonrenewal of a policy described in the annual budget report, the Association shall immediately notify its members if replacement coverage will not be in effect by the date the existing coverage will lapse.