AgdaPkt 2014-06-23 Closed and Joint SA

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7.1.L. - Page 74 Condominium's allocable share so that the non-segregated taxes may be paid in a timely and proper manner. The Association may levy a special assessment against the Condominiums to collect the non-segregated tax amount. Any Owner who breaches the Owner's duty to pay the Owner's allocable share in a timely and proper manner shall be liable for any penalties, interests,fees or other such costs incurred as a result of the breach. 5.9 Utility Service. The Association shall acquire, provide and pay for water,sewer, refuse and rubbish collection, electrical, telephone, gas and other necessary utility services for the Common Area and any commonly metered utility service to the Units. 5.10 Reporting and Notice Requirements. The Association shall prepare and distribute the documents described in this Section 5.10. The annual budget report required under Section 5.10.1 and the annual policy statement required under Section 5.10.3 shall be delivered to each Member by individual delivery pursuant to Civil Code section 4040. The Association shall deliver either the full report or a summary. If the Member has requested to receive all reports in full, the Association shall deliver the full reports to that Member. If a summary is delivered, the summary shall include a general description of the content of the report. Instructions on how to request a complete copy of the report at no cost to the Member shall be printed in at least 10-point boldface type on the first page of the summary. 5.10.1 Annual Budget Report. An annual budget report for each fiscal year shall be distributed not less than 30 days nor more than 90 days before the beginning of the Association's fiscal year containing all of the following information: (i) A pro forma operating budget showing the estimated revenue and expenses on an accrual basis. (ii) A summary of the Association's reserves prepared in accordance with the requirements in Civil Code section 5565. (iii) A summary of the reserve funding plan adopted by the Board,as specified in Civil Code section 5550(b)(5). The summary shall include notice to Members that the full reserve study plan is available upon request and the Association shall provide the full reserve plan to any Member upon request. (iv) A statement as to whether the Board has determined to defer or not undertake repairs or replacement of any Major Component with a remaining life of 30 years or less, including a justification for the deferral or decision not to undertake the repairs or replacement. (v) A statement as to whether the Board, consistent with the reserve funding plan adopted pursuant to Civil Code section 5560, has determined or anticipates that the levy of one or more special assessments will be required to repair, replace or restore any Major Component or to provide adequate reserves therefor;and if so,the statement shall also set out the estimated amount,commencement date and duration of the assessment. (vi) A statement as to the mechanism or mechanisms by which the Board will fund reserves to repair or replace major components, including assessments,borrowing, use of other assets, deferral of selected replacement or repair, or alternative mechanisms. (vii) A general statement addressing the procedures used for the calculation and establishment of those reserves to defray the future repair, replacement or additions to the Major Components. The statement shall include, but need not be limited to, reserve calculations made using the formula described in Civil Code section 5570(b)(4)and may not assume a rate of return on cash reserves in excess of 2 percent above the discount rate published by the Federal Reserve Bank of San Francisco at the time the calculation was made. CLSS\51643\927586.5 20 June 16,2014