Berkeley Balcony Tragedy p.8
Solving the Reconstruction Puzzle! p.14
Lender Requirements Affect Everyone
p.20
Business v. Politics or Management v. Board
Level 3 Inspections: A Non-Invasive Approach to Tree Risk Management p.28
p.24
August 2015
Serving Community Associations
echo-ca.org
More Inspections Aren’t Enough! p. 8
2015 Statute Book Addendum Pull-out Inside Back Cover
ECHO 1960 The Alameda STE 195 San Jose, CA 95126 Change Service Requested
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news from ECHO
News From ECHO August 2015 We are pleased to include in this edition of the ECHO Journal an Addendum to our Statute Book for 2015. The pull-out pages are just inside the back cover, and can be saved with your Statute Book for easy reference. We anticipate publishing a complete Statute Book for 2016, in which we hope to include not only the Davis-Stirling Common Interest Development Act, but also other statutes related to homeowners association governance. You can also access the laws that control HOAs on our website at www.echo-ca.org/law. We are also proud to announce that usage of our website has grown 400% over the last year. That tells us that ECHO Members and others seeking information about HOA governance value ECHO as a trusted resource. We have spent a great deal of time and effort to bring you the information you need, in the depth you want, right now. We invite you to explore the website: www.echo-ca.org. Website research is great, but it is not a substitute for one-on-one learning from experts in the industry. Not only can they answer your questions, in depth, they can anticipate your needs because you don’t know what you don’t know. Our next seminar will be in Monterey on October17. Use the flyer on page 6 to register, or go to www.echo-ca.org/events. And stay tuned for our line-up of seminars for 2016. Please let us know how we are doing, and what we can do to make your ECHO Membership more valuable. We’re here for you!
Best,
Brian Kidney Executive Director
August 2015 | ECHO Journal
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CONTENTS
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28
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Berkeley Balcony Tragedy Building failures happen all the time, but the press and government largely ignore them because nobody died. With these six tragic deaths (and serious injury to seven others) the press is now all over it.
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Solving the Reconstruction Puzzle! How can a Community that is run by volunteer board members and led by a professional management company know that they’re going about it the best, most cost efficient way without experiencing a construction nightmare?
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Lender Requirements Affect Everyone If your community doesn’t meet lender guidelines, sales will not happen, refinances will be denied, assessments won’t be collected and properties will be left vacant.
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Business v. Politics or Management v. Board Why Boards care about building consensus: A positive political base is the best place from which to govern.
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Level 3 Inspections: A Non-Invasive Approach to Tree Risk Management Trees are somewhat like people; at some time during their life they too will develop internal problems that are not always identifiable by an external examination alone. Today, technology has advanced to the point that this non-invasive type of data collection is possible.
The ECHO Journal is published monthly by the Educational Community for Homeowners. The views of authors expressed in the articles herein do not necessarily reflect the views of ECHO. We assume no responsibility for the statements and opinions advanced by the contributors to the magazine. It is released with the understanding that the publisher is not engaged in rendering legal, accounting or other professional service. If legal advice or other expert assistance is required, the services of a competent professional should be sought. Acceptance of advertising does not constitute any endorsement or recommendation, expressed or implied, of the advertiser or any goods or services offered. We reserve the right to reject any advertising copy. Copyright 2015 Educational Community for Homeowners. All rights reserved. Reproduction, except by written permission of ECHO is prohibited. The ECHO membership list is never released to any outside individual or organization. ECHO 1960 The Alameda, Suite 195 San Jose, CA 95126 408-297-3246 Fax: 408-297-3517 www.echo-ca.org info@echo-ca.org Office Hours Monday-Friday 9:00am to 5:00pm Board of Directors and Officers President David Hughes
DEPARTMENTS
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News from ECHO
6
2015 ECHO Educational Calendar
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Featured at echo-ca.org
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Monterey Educational Seminar — October 10th.
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ECHO Bookstore
39
Advertiser Index
40
ECHO Event Calendar
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ECHO Volunteers
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Legislation at a Glimpse
Vice President Karl Lofthouse Treasurer Diane Rossi Secretary Carly Melius Directors Jerry L. Bowles John Garvic Adam Haney Stephanie Hayes David Levy
Robert Rosenberg Brian Seifert Wanden Treanor Steven Weil
Executive Director Brian Kidney Director of Marketing & Membership Carly Melius Director of Communications Tyler Coffin Legislative Consultant Mazzoni and Associates Design and Production Design Site ECHO Mission Statement Serving Community Associations
August 2015 | ECHO Journal
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2015 ECHO educational calendar
San Francisco
October 17 Monterey Educational Seminar (see page 13) Embassy Suites Monterey Bay Seaside, CA
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featured at echo-ca.org
Timely tips, fresh insights, and legislative updates — always find what you need by visiting our website. To gain access to all of ECHO’s articles, sign up for a free account: email ECHO at newaccount@echo-ca.org.
Articles Who Should Make Decisions in HOAs?
“Who decides what?” may seem like a simple question: boards pick contractors, members vote on document amendments, etc. But when a board faces a particularly controversial decision, they may be tempted to ask for a vote of the membership. Unfortunately, there’s a problem with this method: if the membership makes the wrong decision, who is responsible? This article examines the balance of decision-making authority vs. responsibility between the board and membership. Educational Topic: Voting-Board
Components of an Enforceable Rule
Every association uses rules to manage problems not covered in the CC&Rs. While some rules are reasonable, other can lead to lawsuits. What’s the difference between a rule bound for litigation and one that will help the community and board? Learn the different elements that make up an enforceable rule. Educational Topic: Rules
Manager Certifications: What Different Certifications Mean for Your HOA CCAM, PCAM, MCAM, LMS – have you heard of these certifications before? If your association is managed or looking for management, you should ensure that your management professional is certified. But you should also know what each certification means: learn about the different types, areas of emphasis, and required experience. Educational Topic: Manager Certification
Fines in HOAs
Fines should never be looked at as a source of income for HOAs. Rather, fines help associations to enforce rules. And just like rules, fines need to be effective and enforceable. Learn how to create an appropriate fine, when to use it, and the fining process. Educational Topic: Fines
Facebook Join Our Facebook Community Want to see pictures from the Annual Seminar? Comment on our legislative activity? We only put the latest news up on Facebook, and we’d love to hear from you. Share your experiences, read important and amusing HOA news, and connect with your fellow HOA owners on ECHO’s Facebook page. facebook.com/echoorg
ECHO Journal Read the ECHO Journal on the ECHO website before it arrives at your door. We usually post the latest issue on or before the beginning of each month. Log in to browse the latest articles, or read from a huge library of past issues. Find in: echo-ca.org/journal
August 2015 | ECHO Journal
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BERKELEY BALCONY TRAGEDY MORE INSPECTIONS AREN’T ENOUGH By Tyler P. Berding, Ph.D., J.D.
I
n the early morning of June 16, 2015, in Berkeley, California, the lives of 6 young people were snuffed out because the balcony they were standing on collapsed. Building failures happen all the time, but the press and government largely ignore them because nobody died. With these six tragic deaths (and serious injury to seven others) the press is now all over it. We have daily reports of experts opining on the cause (rot caused by moisture intrusion into the wood beams supporting the balcony.) We have interviews with Berkeley city officials (there were numerous inspections of this 8-year old building but none of the waterproofing.) The opinions page trumpets that inspections must increase to prevent another tragic event. Yes there should be more inspections by municipalities, and building owners, but it won’t be enough. August 2015 | ECHO Journal
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or 40 years I have litigated cases involving design and construction errors. My firm has represented the owners of older buildings where rotted framing is commonplace but unknown until it gets so bad it threatens building components and human safety. We have represented the owners of new buildings like the one in Berkeley where water has seeped into wall cavities and induced rot and mold because the waterproofing was not installed properly, and many projects where the installation of waterproofing was defective but had not yet led to a catastrophic failure. The local municipality had specifically inspected none of these instances of failed waterproofing. Why? Because even if the inspector stood over the workmen 8 hours a day, 5 days a week and watched them put together every waterproof assembly, mistakes would still occur.
Probably the joint where the balcony surface abutted the wall of the building or the flashing intended to protect the wood beams from moisture allowed water to enter the assembly and rot the beams. The experts who examined the building plans have said that the architect likely provided proper waterproofing details, so the question is why did it fail? A quick answer might be that the contractor or its employee were careless, and that could be. But more likely they were not adequately trained or incentivized to follow the drawings and build it correctly. Many years ago the building trades utilized an apprentice system whereby a master tradesman supervised 10 echo-ca.org
the training of new recruits until they too were skilled at their craft. Craftsmanship was a source of personal pride and welltrained workers were valued and given the latitude to build a proper building. But we are not training enough craftsmen. The enormous demand for housing in recent decades has outdistanced the supply of trained labor and the result is buildings that bristle with mistakes. Couple that with “value engineering” to reduce costs by employing materials that do not survive unless constructed in a very precise manner and you have a recipe for disaster. Lawyers and not building inspectors have become the quality control, unfortunately well after the fact. The forensic inspections we conduct on client’s buildings frequently reveal instances of work done improperly and contrary to the designer’s intentions. If we can find them, why can’t the original builders? Carelessness could be one excuse, but a lack of training adequate to recognize poor quality construction, coupled with a willingness to accept cheap and expeditious materials and methods to meet demand and cost controls are more likely. Whatever it is, it has resulted in failures of building components some of which pose hazards to life and safety.
Designers are also not without fault. Choosing materials without regard to where the project will be located, failing to provide adequate details to guide the contractor, creating architectural interest at the expense of building performance, can all result in a failed building. Design errors can be caught before they are incorporated into a building but only if the contractor constructing it is trained and incentivized to recognize errors and bring them to the owner’s attention. This brings us back to the lack of skill and training. Foremen and crewmembers should have enough skill and understanding of fundamental building practices to avoid obvious errors. A joint or juncture of two materials or building components does not require exotic materials or methods to be built waterproof. This is Construction 101. When an assembly in an eight-year old building allows so much water to enter that it rots major framing members in less than ten years, someone didn’t know what they were doing. If it turns out that the design was flawed, the contractor didn’t know enough to bring that flaw to the owner’s attention. There will be a lot of finger pointing and accusations back and forth over who committed the error, but the contractor or workman charged
August 2015 | ECHO Journal
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How Do You Join ECHO? Over 1,700 members benefit each year from their membership in ECHO. Find out what they’ve known for years by joining ECHO today. To apply for the membership, sign up online at www.echo-ca.org. For more information about membership and ECHO, call us at 408-297-3246 or visit the ECHO website.
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with creating a waterproof joint or transition should have been skilled enough to recognize that what they were building would not work. Technical training in construction techniques can begin in high school or community college and we have an obligation to see it does once again. Trade unions have programs to train their members which should be encouraged and combined with public school education programs. There is a technology gap—more jobs than we have trained people to employ. That gap doesn’t just occur in Silicon Valley. It also exists in the construction trades. You find no skilled carpenter who can recognize serious errors by trolling by your local convenience store. Real craftsman have pride in what they do, are properly compensated, and are trained in programs that teach construction fundamentals, how to read drawings and apply them correctly. If avoiding dangerous errors means spending more private and public funds on technical training then it is logical that we do that. Quality construction will pay for itself
in lower insurance (and legal) costs, less maintenance and repair expense, and greater safety for building occupants. The tragedy in Berkeley did not have to happen, but a lot of potential tragedies are lurking in buildings everywhere that were constructed in haste or without a sufficiently skilled workforce. When the housing market is hot and you can sell anything that you can get to market, the incentive to cut corners and get labor wherever you can find it is always there. Builders, municipalities, and state legislatures now have the wakeup call it sadly took six deaths to provide. More inspections and testing of construction are absolutely called for in both new and old buildings. But without a properly trained workforce that can avoid defective construction and build quality buildings, this won’t be the last tragedy we read about.
Tyler Berding, JD, PhD, is one of the founding principals at Berding|Weil LLP, providing a wide variety of legal services to homeowners associations.
New For 2015, FREE Attendance for ECHO HOA Members!
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Price
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By Chris Sigler, B.S.C.E., C.D.T.
Solving the Reconstruction
Puzzle! August 2015 | ECHO Journal
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hen an Association is facing the need for “reconstruction” —in essence, a major renovation project — it seems a daunting task. So many moving parts, so much to consider. What to do? How can a Community that is run by volunteer board members and led by a professional management company know that they’re going about it the best, most cost efficient way without experiencing a construction nightmare?
There is good news – the industry is full of great resources that can be called upon to lead you through the some
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times-muddy waters of a major reconstruction project, no matter what type or size of project you are faced with. Success rates and results will vary, of course, but the most successful projects are carried out with the guidance of a professional. The process of reconstruction, if organized, well-communicated and collaborative, can be very rewarding indeed. First, we must define what a “reconstruction project” is, before we can begin tackling solutions. Reconstruction projects, in essence, can be differentiated by two different “types”:
1
Post-litigation defect work
This type of reconstruction project follows a construction defect lawsuit and/or settlement, which usually occurs within the first 10 years of
a property’s life. These types of projects have many built-in benefits: tremendous volumes of data and investigative work already completed; funding (sometimes sufficient, sometimes not) that was borne from the litigation or settlement; and, a Board and Community that are more “in tune” with the facility, its components and problems, and the problems that face them.
2
Aging Properties with excessive deferred maintenance
This type of project is many times much more difficult to tackle. There may be elevated structures such as stairs or balconies that are visually worn out, and may be either
un-safe, or nearly unsafe; there may be roofs that are leaking prematurely, exterior cladding that is falling off of the buildings, or roads that are full of potholes or other hazards—or all of the above. Your reserve analyst and reserve study may be telling you that it’s time to paint, but you know that you can’t paint over what you don’t know is wrong (but you know that you have problems). The priorities, issues and problems must be identified, quantified, and priced out, but you don’t know a) what the problems really are; and b) whether you can afford to fix them with the reserves and money in the bank.
Are ALL big projects considered “reconstruction” projects?
That, my friends, is in the eye of the beholder. A major complex-wide re-roofing project may be considered as a reconstruction project, in some eyes. A major balcony or decayed wood repair project followed by complex-wide repainting effort may be considered a reconstruction project. The bottom line is the same for both: Professional Management Companies and Volunteer Board members are not trained to tackle such work, nor are they able to effectively organize such an effort. So, what is the most effective way to avoid disaster when faced with a major renovation or reconstruction project?
Getting to the starting line – the pre-construction steps Major projects, no matter what type or size, do not happen overnight, and
require a great deal of planning and due diligence prior to execution. There is hope, however—many successful projects have been developed and executed by following some rational and careful steps and utilizing the various industry resources that are available to Board members and Managers. In order to set up a project for success, consider the following steps: STEP
1
Hire an “Expert” (Consultant).
Your Consultant should be a construction professional such as a Construction Manager, an Architect or an Engineer. A “project leader” so to speak, who will draft specifications and drawings, write a clear scope of work, and assist the Association in determining the priorities
August 2015 | ECHO Journal
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STEP
for the time involved in redacting an enhanced record. These costs shall be prepaid. [Civil Code § 5205(g)].
STEP
2
Research the history of the structure(s) and perform investigations
In the case of post-litigation projects, much of this work has already been done; in the case of aging properties, this is a key element to assist the Consultant in determining deficiencies, priorities, and “right-sizing” the project scope. New technologies such as Infrared Thermal Imaging now exist that can minimize disruptions to the residents, while collecting some valuable data during this investigative phase.
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3
Prepare the scope of work
This should be prepared and authored by your Consultant, in collaboration with the Board, Management, and the data collected during the investigative phase. This is the body of work that the bidding contractors will utilize to price out the work, and allows them to bid more confidently, knowing that they are bidding “apples to apples” as is often said, on a “level playing field.” This is a very key element to keeping project costs down!
STEP
4
Solicitation of bids
Usually done by the Consultant. Once a list of bidding contractors has been
agreed upon between the Consultant, Board and Management, the chosen contractors are invited to bid the work —sometimes referred to as an “RFP” (Request for Proposal). A pre-bid conference should be held on site, wherein the construction documents (drawings and specifications) are distributed, a site walk is conducted with the bidders, and a review of the project scope and specifications is performed with the selected bidding contractors.
STEP
5
Receive and analyze bids and create a project budget
Once bids have been received, a thorough review must be performed of all bids and data collected. The Consultant must analyze all bid submittals inconsistencies, accuracy, completeness, and substantiating information provided
by the bidding contractors. Once this has been completed, the Consultant should prepare a project budget that includes, but is not limited to the Contractor bid prices, Construction Management, contingencies for unforeseen/hidden conditions that are typically discovered, permits, legal fees, and any other miscellaneous project costs that might be incurred. Once these steps have been carried out in a controlled and well-communicated manner, Board members can then make informed decisions about their project. The final project scope must be determined based upon either available reserve funding, or other methods of obtaining funding for a desired project scope can be pursued—an entirely different topic that can be pursued with the assistance of the Community Manager, if necessary. Regardless, it is important that the Board members be decisive and concise, and now that the “bids are in”, the following decisions and determinations must be made by the Board:
1. Finalization of the project work scope and budget 2. Selection of Contractors 3.
Selection of a funding model (existing reserves vs. loan/line of credit vs. special assessment, or any in combination)
And, with those important decisions made and once funding is confirmed, the important task of carrying out the project can commence—the construction phase. Although from inception to this point has taken, in many cases, months to achieve, the real heavy lifting still lies ahead!
The Construction Phase Reconstruction in Common Interest Developments is never easy – it seems intrusive and is dirty, loud, and can be unpleasant at times. The goal is to make the construction experience as pleasant as possible, while being mindful that the work is being performed in and/or around our residents’ homes. In order to have a successful experience, the Board should
once again retain the services of your “project leader”—someone to oversee, coordinate and manage the work. Ultimately, the best project leader would be the Consultant who specified the work, but that is not mandatory (although strongly recommended). For the purposes of our discussion, we’ll refer to the project leader as the Association’s “Construction Manager” or “Consultant”. There are a few hard-and-fast rules that lead to a successful reconstruction project:
1. Communication 2. Communication 3. Communication! It has been our experience that since the work is being done so closely to the homes of our Community’s residents, that this is the key. There is a saying: “a homeowner who is well-informed is a much less stressed out homeowner!” Any—or better yet, all of the following communication methods should be deployed by your Construction Manager:
a. Newsletter Articles and/or website posts b. Town Hall meetings and written handouts of information c. Written notices to residents, and face-to-face meetings as needed d. Posted schedules and other project information on a community posting board Once the residents are prepared for the work that lies ahead, the Construction Manager should remain as the
Community’s “Central Voice” and advocate for the membership—the first point of contact for all project matters, to keep the communication consistent and familiar. Other important roles the Construction Manager must play include quality control inspections, budget and schedule compliance monitoring, documentation of work in progress, contractor payment application and mechanics lien release processing and—very importantly—communicating progress about all aspects of the work to the Board. As the work winds down, the Construction Manager should ensure that all of the details of finalization are carried out:
• Punch list inspections and cleanup • Final sign-off of permits from the contractor • Obtaining of final lien releases • Receipt of all contractor and product warranties • Assembly of maintenance instructions for work performed • Transmittal of project close-out doc uments/archives to the Association The journey from inception to cleanup is a long one, but the end game for the entire process should create safe, clean, refreshed and updated homes, with a maintenance-friendly Community that is more pleasant to enjoy! Enjoy the journey! Chris Sigler, B.S.C.E., C.D.T., is principal at C. L. Sigler & Associates, Inc., an ECHO Member firm providing consulting and construction management services for Common Interest Developments. August 2015 | ECHO Journal
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If your community doesn’t meet Fannie Mae... 20 echo-ca.org
and Freddie Mac guidelines, you run the...
Lender Requirements affect
EVERYONE risk of banks not lending money to your community.
By Charlotte Allen
August 2015 | ECHO Journal
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ender requirements affect everyone. If your community doesn’t meet Fannie Mae and Freddie Mac guidelines, you run the risk of banks not lending money for your community. If your community doesn’t meet lender guidelines, sales will not happen, refinances will be denied, assessments won’t be collected and properties will be left vacant. An association that does not meet mortgage requirements may very well be in violation of governing documents which means your board is in jeopardy too.
The best solution to this increasing conflict is to be proactive. Ask your insurance agent to explain lender requirements and advise if your association is meeting these requirements currently. If you are not meeting the standard, work toward doing so as soon as possible. This way you will be well prepared and informed for the next purchase or refinance.
What are some of these requirements? According to Announcement SEL2013-08, Fannie Mae will no longer allow master or blanket insurance policies that include multiple unaffiliated properties in a single policy. Even prior to Fannie Mae’s announcement, these types of policies were often ill-advised as sharing limits and a named insured with other properties may very well put your property at risk of insufficient coverage and “dinged” financially for another property’s claim experience. So although lender requirements have become more stringent, the bright side is, they are forcing associations to maintain a more suitable standard meant to keep properties well insured.
Fannie Mae’s Selling Guide B7-3-03 requires that a homeowners association be protected by the full insurable replacement cost of the entire project. There are a few ways to meet this standard. A policy can contain either a Guaranteed Replacement Cost endorsement, offer no coinsurance (or coinsurance waived), or have an Agreed Value clause. If the association’s policy contains none of these things, the value or limit of coverage simply has to be an accurate replacement cost for the entire project. Insurance agents can provide proof of this by offering lenders a completed valuation cost estimate.
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Fannie Mae now reviews crime coverage and requires the limit of insurance be equal to the maximum limit of association funds at any given time. This means agents and communities need to stay aware of fluctuation in funds. Proactive agents will touch base at least yearly, to determine if existing crime limits meet the association’s needs. If you find yourself in need of a change in your crime limit, contact your agent for a mid-term adjustment. Even large increases are often a very minimal cost and will save you the headache of having to change a policy days or even minutes before a loan is anticipated to close.
There are several options brokers have when it comes to valuation cost estimators. A program well known to the common interest development industry, and widely used by brokers is Marshall Swift Boeckh (MSB). The MSB system considers association data including construction type, location, square footage, common area components and much more, to determine accurate cost valuations for commercial and residential real estate.
Associations located in mandatory flood zones (A or V) must maintain flood insurance coverage. This is a given however Fannie Mae now requires that the flood coverage limit be either full insurable replacement cost value or the NFIP maximum (which for condominiums is $250,000 per unit). If the association’s flood insurance is insufficient the lender can and will force place supplemental coverage at the owners’ expense. Fannie Mae guidelines also require that flood deductibles not exceed $25,000 per building.
The key is to be preemptive. Know all the requirements of Fannie Mae or better yet, utilize an agent who does. Determine you are in compliance well before a loan funds. The aforementioned requirements are an extremely condensed variety of loan requirements. For more details on all the Fannie Mae guidelines visit https://www.fanniemae.com/singlefamily/project-eligibility. Charlotte Allen is a licensed insurance broker with Socher Insurance Agency. For the past ten years she has successfully aided in acquiring and retaining insurance for thousands of common interest developments throughout California.
Amazon customers gave it a five-star rating 2015 Condominium Bluebook A Complete Guide to Condominium Living
Member Price: $17.00 Non-Member Price: $25.00 This well-known compact guide for operation of common interest developments in California now includes a comprehensive index of the book and a chapter containing more than 200 frequently-asked questions about associations, along with succinct answers.
Order today from ECHO!
Call 408-297-3246, fax at 408-297-3517 or visit us online at store.echo-ca.org
August 2015 | ECHO Journal
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By Julie Adamen
Business v. Politics or 24 echo-ca.org
Management v. Board August 2015 | ECHO Journal
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olitics: “The often internally conflicting interrelationships among people in a society.” 1
*Sigh* Politics. The word seldom has a positive connotation and for good reason. Many is the governing body beat down, slowed down, or paralyzed altogether by politics and our industry is no exception; indeed, community associations are immediately and directly affected by their politics. Unlike employees of the federal government, Boards of Directors live with their constituents where feedback is immediate and visceral. Conflicting and complicated interrelationships, indeed.
Community managers, though peripherally aware of the community politics, are by demand, task-oriented. They want to move, and take action with lightening efficiency as their time to spend on the issues of any
one community is finite - there are only so many hours in the day. Concrete spalling? Here’s the protocol for repair. Tree removal? Here’s a sample policy. Reserve study? Here are three bids. The manager’s primary relationship is with the Board, and once their majority approval is achieved... Let’s move on! There is more work to do!
On the other hand, Boards are processoriented and will move at a far slower pace in coming to a decision, especially when that decision entails a) spending money, b) changing a specific aesthetic, c) raising assessments or special assessing, or d) pursuing legal action. Unlike staff, the Board must necessarily calculate the political ramifications of their upcoming decisions and sees the need to build consensus, or a positive
political base from which to operate. The larger the issue, the more time it will take to assuage those “internally conflicting and complicated interrelationships” 1 and the more the difference between business efficiency (management) and political process (the Board) becomes evident.
Why Boards care about building consensus: A positive political base is the best place from which to govern Community happiness. No matter what, most Boards just want the community to be happy with the decisions they render. Happy communities mean fewer phone calls and emails. Happy communities mean Board members may attend a cocktail party without fear of being eaten alive, or hit the links without an impromptu town hall meeting on the back nine led by the torch-and-pitchfork crowd. Happy communities mean more people want to volunteer for future positions because they like being a part of something positive. Cover. No doubt one of the main reasons for building consensus is to give the Board, or specific members, political cover within the community. This doesn’t apply only to controversial decisions; even seemingly simple decisions need Board and owner buy-in one way or another. The more folks in the process, the more positive voices
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are out there and the more cover a Board will receive. If things go well, all glory is shared. If things go south, well, there are plenty of shoulders on which to carry the burden. Help. The decision and its process will create an inordinate amount of work for the Board or individual Board members, and they will need help from additional volunteers to manage it. The double bang for the buck: Those included in the process find themselves explaining it to others in the community, building consensus by simply sharing information.
Board consensus When the decisions faced by a Board go beyond approving the financials or having a piece of sidewalk repaired, the mantle of responsibility becomes heavier and even the best of Board members can feel like bolting the process and letting the issue slide. In these cases it’s no surprise consensus among the Board becomes more difficult, yet, it is crucial that every effort be made to achieve it. Without concensus, gaining community buy-in gets even harder as the “dissenting” members of the Board make their dissent known throughout the association, creating uncertainty in the community and a lack of confidence in the elected leadership. This dynamic can have a long lasting detrimental effect on everyone. A manager can do little here but provide information when asked, and above all stay neutral, helpful and disinvested in any specific issue.
Building community consensus Boards attempt and at times succeed in building consensus in a variety of ways within the community at large, and each one takes a tremendous amount of time and much effort on their, and typically the managers, part. Town Halls. This type forum for politicking is an effective way to disseminate information, allow owners to ask questions of experts, or the Board or simply let residents vent. Each time a town hall is held the Board wins over a few more converts to their cause. A town hall creates transparency, and with transparency comes credibility and confidence
in leadership: All positive aspects of this type of politicking. Surveys. Surveys are a great tool and no, the Board doesn’t have to follow the populist results. They must, however, communicate those results to the residents and also communicate on which course of action the Board is considering. Ad Hoc Committees. When it comes to controversial issues nothing beats appointing an Ad Hoc committee to study the issue and make recommendation. This process makes more people privy to much, if not all, of the project information that the Board has. From there, the committee will likely see the light and then make recommendation in the affirmative. Not only is that a public show of support for the Board from “outside,” i.e., a group of owners, but having those owners wandering among the community spreading correct information and educating others on behalf of the Board is politically priceless.
Is consensus building inefficient? YES and NO Building consensus among warring political factions takes a lot of time, something of which the manager is always short. More often than not, an experienced manager could tell the Board what should be done with the same eventual results and a lot less time and effort on behalf of all; however, that approach does not take into account the political reality of community associations. Building consensus can make any community more harmonious place to live and an easier place to govern and manage.
The manager’s job The role of management is and remains, as always, that of the impartial consultant, doling out information as requested and supporting the Board in its effort to build consensus and waiting (patiently) for the process to unfold itself and for the dissenter(s) to come ever closer to agreement. This inherent push and pull between management and the Board is the manager’s daily life, because staff is charged with the operation of the community (tasks) and the Board, like it or not,
always tries to build consensus among each other and within the community at large (process). A manager is business. The Board is politics. And “never the twain shall meet”2 that is, until the very end. Yes, it can be frustrating for management, but railing against it is a useless expense of energy. Most community associations manage themselves inefficiently, at least from the manager’s point of view. Managers want to get things done; Boards have to rub stones together. Managers need direction, Boards light incense. The cause of frustration: Management is business-efficient, Boards are politically-expedient. One moves far more quickly than the other. Understanding the significance of this process is paramount to any manager’s long-term success. Julie Adamen is the principal of Adamen Inc., a management and employment consulting firm. Julie is available to consult to management firms and Board of Directors. www.adamen-inc.com Footnotes: 1) http://www.thefreedictionary.com/politics 2) Rudyard Kipling
August 2015 | ECHO Journal
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28 echo-ca.org
Level 3 Inspections:
A Non-Invasive Approach to Tree Risk Management By Robert Booty August 2015 | ECHO Journal
29
A
s you are traveling home one evening, you notice a consistent dull pain in your lower back. As the weeks pass the pain intensifies and you are increasingly concerned. You visit your family physician, and after an examination he explains to you your options to determine the source of your pain. He describes how exploratory surgery may provide some answers. But he also describes other options including noninvasive ones such as ultra sound, MRI (electromagnetic imaging) or an x ray. Knowing that complications can develop using exploratory surgery, your physician doesn’t take any chances and orders an MRI scan on your lower back. Trees are somewhat like people; at some time during their life they too will develop internal problems that are not always identifiable by an external examination alone. Arborists have used all sorts of methods and calculations to determine the internal condition of a tree and its potential risk. Some of these methods were very invasive, such as removing core samples, drilling or even cutting away decay within a cavity. Those were the standard methods used at one time. Some of these are still in use today. There’s reason to believe that the term “Tree Surgeon” may have been coined as a result of these invasive procedures.
The value of using non-invasive technology for level 3 inspections
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What benefit is there in using non-invasive diagnostic procedures during level 3 inspections? Like people trees can be adversely affected by the methods used to evaluate their health, particularly with procedures that penetrate the bark. The establishment of decay1 in living trees is affected by urban environmental stresses that range from a general weakening of a tree’s natural defense system to injuries that allow wood-rotting agents to gain entry through wounds. Trees have an internal protection system that uses a series of four internal walls, all beautifully designed to block or resist the spread of disease- causing pathogens that invade them. It’s referred to as CODIT2. When invasive testing methods are used, these protective walls can be pierced, allowing decay pathogens, which at one time may have been localized or contained, to continue their spread within the tree. When performing Level 3 assessments, knowing the internal structural condition of a tree is a vital part of that process. If this internal data could be collected
without drilling or using other invasive methods, if you could just collect your data and walk away, as if you were never there, then it truly would be a win-win situation for the tree being evaluated.
Use of radar technology Today, technology has advanced to the point that this non-invasive type of data collection is possible. It is being accomplished by using ground penetrating radar that doesn’t harm the tree being evaluated. The use of radar imaging on trees creates the same type of high-resolution image that a medical professional, using MRI imagery, would use to diagnose a patient. This is the latest method to safely evaluate the internal structure and condition of a tree without causing physical harm. Having the ability to create and see an internal image of a tree and then identify hidden internal problems, fills a critical gap in risk assessment and tree preservation.
How does it work? Ground-Penetrating Radar (GPR) is an established technique that has been used worldwide for over 45 years.
August 2015 | ECHO Journal
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CASE STUDY #1
This valley oak tree (Quercus lobata), between two residential homes, is about 200 years old. the concern was the structural stability of the tree. Open pockets of decay, the result of large, old pruning wounds, were visible. Both homeowners were concerned because there was so much weight over their homes. We completed four radar scans on the oak, and all of the results indicated advanced decay with an average of 7 inches of solid wood remaining. The trunk diameter was confirmed by invasive testing, using the Resistograph and removing core samples.
32 echo-ca.org
CASE STUDY #2
This is a coast live oak tree (Quercus agrifolia) located at the rear entrance of a hospital. Staff walked under this tree from a parking lot every day. Radar can be used for full circumferential trunk imaging as seen in case study #1 or in a data collection mode as we see here, where the trunk is very uneven and difficult to scan. In this mode, the arborist places the antenna at a desired location and sends a single radar wave into the tree. If it encounters decay, the wave reflects back to the antenna, measuring the remaining amount of sound wood. It works just as if you had physically drilled into the tree inspecting it for decay, only this is non-invasive. Upper Trunk Evaluation Data Point Detection Key
Scan ID#
Wave Form #
Decay Detected?
Remaining Sound Wood
#502
0
yes
9.3 in.
#708
15
yes
9.4 in.
#505
13
yes
7.7 in.
A radar wave is calibrated to penetrate 30 inches into the tree; the numbers in yellow on the tree are the actual sites that tested positive for decay. The upper elevation of testing involved the area of the main scaffold limb attachments, form about 11 to 16 ft. in height.
August 2015 | ECHO Journal
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Radar is an object-detection system that uses electromagnetic waves – specifically radio waves, to identify the range, altitude, direction, or depth and speed of both moving and fixed objects. Its uses today seem endless. When you look at the weather report, you are looking at Doppler weather radar, which tells you where and when the heaviest amounts of rain will fall in your area. The radar, as it passes through the clouds, measures the density of the moisture in them and the speed they are traveling so you will know approximately when it will start raining and how much rain will fall. Radar is used in aviation, automobiles, law enforcement, and locating objects below ground.
But what exactly is it that makes radar work? When an electromagnetic wave3 emitted from a small surface transmit-antenna encounters a boundary between objects with different electromagnetic properties, it will reflect, refract, and/or diffract from the boundary in a predictable manner. Radar waves or signals are reflected especially well by materials of considerable electrical conductivity. The radar signals that are reflected back towards the transmitter are the desirable ones that make radar work. An air-filled tree trunk (as in a decayed hollow area) or partially air-filled incipient (early stage) decay zone inside a cell wall of a tree are excellent reflectors for detection by GPR systems. Use of GPR instrumentation for internal tree trunk decay detection is one of its latest uses in the field of tree risk assessment.
How does radar distinguish between decayed and healthy wood? Wood decay fungi4 decompose lignified cell walls within living wood tissue by using enzymatic and non-enzymatic systems. This creates a microscopically detectable hollow or void within the cell walls of the wood, thereby reducing normal wood strength. If you were using 34 echo-ca.org
a fish finder to locate fish, the sonar waves would bounce off the “air-bladder” within the fish giving you its location and depth. Ground penetrating radar imaging does the same thing when locating decay, only using radio waves. Radar imaging can identify these changes within the wood cell composition. It’s the loss of the woods mechanical strength caused by these organisms that is inherently linked to hazardous situations, which can result in significant property damage or personal injury. Ground penetrating radar is one of the latest non-invasive forensic technologies used for wood decay analyses; its sensitivity to hollows, internal cracks or voids enables it to detect and create an image of these small internal molecular changes in wood density and composition. Incipient or early-stage decay is the very beginning of the biodegradation process of living wood tissue by decay-causing pathogens. Radar imaging can detect these minute early changes. Using the trunk inspection diagram in the above illustration, you can see the radar antenna is slowly moved around the circumference of the tree. As it travels it sends out radar waves every two-tenths of an inch. With no obstructions, these waves penetrate to the center of the tree as the antenna is moved around the trunk. The radar waves, in turn, are reflected back to the antenna or receiver when decay is encountered anywhere within the scanning area. The presence of sometimes hundreds of these reflected radar waves creates an internal image of the structurally compromised area identified within a tree, by measuring the density of the wood and indicating the level of severity of the newly discovered decay. In the process, the remaining solid healthy wood is identified and displayed to the technician, allowing it to be measured in inches or centimeters. The trained arborist, knowing the diameter of the whole tree section being scanned, can use the resulting image data to determine if the internal decay is sufficient to warrant further action. Although radar images or any other imaging devices will not create an actual picture of the inside of a tree it will provide the arborist with an image or likeness, allowing for reasonable
recommendations for the future care of the tree. The use of ground penetrating radar has opened up other doors recently in the field of arboriculture. Ones that have also become valuable in the area of level 3 inspections, below ground root mapping. How many leaning trees are removed just because it’s thought there is a lack of roots on the opposite side of the lean to support the tree? Trees are damaged every year because irrigation trenches are cut across their root systems unknowingly. Is that tree root causing damage to your sidewalk or driveway? You won’t know unless you excavate! Ground penetrating radar is successfully being used to non-invasively locate and map tree roots below ground, without removing the concrete or digging up those roots just to see if they are the nasty ones really damaging the property. The use of ground penetrating radar for below ground root locating will be the subject of a future article. Robert Booty Robert@arboristonsite.com Is a consultant at Arborist OnSite® Horticultural Consulting, Inc. Registered Consulting Arborist 487. He has been involved in the practice of arboriculture and the care and study of trees for over 45 years. Studying under Dr. Mucciardi, he has used ground penetrating radar in his practice the last 10 years. 1 Giovananni Nicolitti, Paolo Gonthier, FAbio Guglielmo, and Matteo M. Garbelotto 2009. A Biomolecular Method for the Detection of Wood Decay Fungi: A Focus on Tree Stability Assessment. Arboriculture & Urban Forestry, Scientific Journal of the International Society of Arboriculture. 2 An Acronym for Compartmentalization of Decay in Trees. 3 Daniels, D.J. 1996. Surface-Penetrating Radar. The Institute of Electrical Engineers, ISBN 0-85296-862-0 4 Giovananni Nicolitti, Paolo Gonthier, FAbio Guglielmo, and Matteo M. Garbelotto 2009. A Biomolecular Method for the Detection of Wood Decay Fungi: A Focus on Tree Stability Assessment.
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SERVING NORTHERN CALIFORNIA SINCE 1963! August 2015 | ECHO Journal
35
BOOKSTORE The ECHO Bookstore is your source for publications providing essential information for HOA Board Member service obligations. Order online at echo-ca.org or fill out form on the facing page. W NETION I ED
Robert’s Rules of Order Member Price: Non-Member Price:
$7.50 $12.50
A step-by-step guide to the rules for meetings of your association, the current and official manual adopted by most organizations to govern their meetings. This guide will provide many meeting procedures not covered by the association bylaws or other governing documents.
Construction Defect Claims Member Price: Non-Member Price:
$19.95 $25.00
New buildings can conceal extensive faults. It’s a board’s worst nightmare—rainstorms damage buildings and bring owner complaints. Is legal action necessary? With this new book, you’ll learn about the resolution process for construction problems, and how to handle complex claims.
Community Association Statute Book—2014 Edition Member Price: Non-Member Price:
$15.00 $25.00
Contains the current version of the Davis-Stirling Common Interest Development Act, the Civil Code sections that apply to common interest developments and selected provisions from other codes important to associations.
Home and Condo Defects Member Price: Non-Member Price:
$12.95 $17.95
Construction defect litigation can be confusing, expensive and fraught with legal pitfalls. This eye-opening guide, written by accomplished construction-defect attorneys, is an essential tool for board members who need to understand the legal process.
36 echo-ca.org
2015 Condominium Greenbook Member Price: Non-Member Price:
$17.00 $25.00
This companion to the Condominium Bluebook is an in-depth guide to all aspects of association finances, including accounting methods, financial statements, reserves, audits, taxes, investments and much more. Not for the accounting novice, this is a tool for the treasurer or professional looking for specific information about association finances.
Questions & Answers About Community Associations Member Price: Non-Member Price:
$18.00 $25.00
For 12 years, Jan Hickenbottom answered homeowners’ questions in her Los Angeles Times column on community associations. Now collected in one volume, readers can find answers to almost any question about CIDs.
Board Member Handbook Member Price: Non-Member Price:
$15.00 $25.00
This publication is the essential guidebook for HOA Board members, dealing with governance, finances, insurance and maintenance issues. Revised and updated in June 2012.
Reserve Fund Essentials Member Price: Non-Member Price:
$18.00 $25.00
This book is an easy to read, must-have guide for anyone who wants a clear, thorough explanation of reserve studies and their indispensable role in effective HOA planning. The author gives tips to help board members mold their reserve study into a useful financial tool.
The Condo Owner’s Answer Book Member Price: Non-Member Price:
$15.00 $20.00
An excellent guide to understanding the rights and responsibilities of condo ownership and operation of homeowner associations. The question-and-answer format responds to more than 125 commonly-asked questions in an easy to understand style. A great resource for newcomers and veteran owners.
ciation o s s A unity Book Comm Statute dition 2014 E
Publications to answer your questions about common interest developments Order Online at www.echo-ca.org Dispute Resolution in Homeowner Associations Member Price: Non-Member Price:
$15.00 $25.00
Bookstore Order Form
EDUCATIONAL COMMUNITY FOR HOMEOWNERS 1960 THE ALAMEDA, STE 195, SAN JOSE, CA 95126 PHONE: 408-297-3246, FAX: 408-297-3517
TITLE
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This publication has been completely revised to reflect new requirements resulting from passage of SB 137.
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Board Member’s Guide for Contractor Interviews
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Name (please print)
$15.00 $25.00
This report is a guide for directors and managers to use for interviews with prospective service contractors. Questions to find out capabilities and willingness of contractors to provide the services being sought are included for most of the contractor skills that associations use.
MasterCard
Exp. Date
Signature
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August 2015 | ECHO Journal
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directory updates
All current listings may be found in our Professionals Directory available online at www.echo-ca.org.
New Members Coastal Termite and Pest Control 3193 Belick St. Suite 7 Santa Clara, CA 95054 Contact: Derek Dwight Tel: (888) 718.9808
Farmers Insurance | Ritchey Insurance Agency 3037 Hopyard Road Suite R Pleasanton, CA 94588 Contact: Deborah Ritchey Tel: (925) 474.3470
J.J. Commercial Water Heaters 2236 Occidental Road Hayward, CA Contact: Richard Gutierrez Tel: (510) 783.6851
Monthli 124 23rd Street San Francisco, CA 94421 Contact: Alex Burton Tel: (415) 637.3911 R.E. Roofing & Construction, Inc. 941 S. McGlincy Lane Campbell, CA 95008 Contact: Miles Proctor Tel: (408) 626.9320
Become an ECHO Professional Member and receive the benefits of membership. To learn more, visit our membership page at www.echo-ca.org
38 echo-ca.org
advertiser index
about ECHO
Ace Property Management..................23 www.acepm.net
Mutual of Omaha Bank.......................18 www.mutualofomahabank.com
ACT: Advanced Construction Technology............................................17 www.advconsttech.com
Neighborhood Association Management.........................................17 www.neighborhoodam.com
American Management Services........11 www.acepm.net
PML Management Corporation..........22 www.pmlmanagement.com
Applied Reserve Analysis....................18 www.AppliedReserveAnalysis.com
R.E. Broocker Co...................................11 www.rebroockerco.com
Associa Northern California M & C Association Management Services...........................2 www.mccommunities.com
Rebello’s Towing..................................12 www.rebellos.net
Benjamin Moore Paint & Company...26 www.benjaminmoore.com Berding Weil..........................Back Cover www.berding-weil.com
Silicon Valley Civil & Structural Engineers................27 www.Qengineers.com Steve Tingley Painting, Inc..................35 www.tingleypainting.com Union Bank...........................................16 www.HOAbankers.com
WHAT IS ECHO? Serving Homeowners to Build Strong Community Associations The Educational Community for Homeowners (ECHO) is a nonprofit membership corporation dedicated to assisting California homeowner associations. ECHO provides help to homeowner associations on many fronts: finances, legal issues, insurance, maintenance and management. Members receive help through conferences, trade shows, seminars, online education, a monthly full-color magazine and discounted publications.
Who Should Join ECHO? If your association manages condominiums or a planned development, it can become a member of ECHO and receive all of the benefits designated for homeowner associations.
Benefits of Association Membership • Subscription to monthly magazine • Access to members-only online education • Updates to the Association Statute Book • Frequent educational seminars • Special prices for CID publications • Legislative advocacy in Sacramento
ECHO Membership Dues
Office 1960 The Alameda, Suite 195 San Jose, CA 95126-2308
Association Membership HOA 2 to 25 units...........................$130 HOA 26 to 50 units.........................$180 HOA 51 to 100 units.......................$275 HOA 101 to 150 units.....................$375 HOA 151 to 200 units.....................$450 HOA 201 or more units..................$575 Professional Membership.................$500 Association Management Membership.......................................$500 Individual Membership.......................$75 Journal Subscription............................$30
How Do You Join ECHO? Over 1,700 members benefit each year from their membership in ECHO. Find out what they’ve known for years by joining ECHO today. To apply for the membership, sign up online at www. echo-ca.org. For more information about membership and ECHO, call us at 408-297-3246 or visit the ECHO website. August August2015 2013 ||| ECHO ECHOJournal Journal February 2014 ECHO Journal
39 39
ECHO event calendar
RESOURCE PANEL CALENDAR ECHO Resource Panels meet during lunch on weekdays to enable managers, professionals and board members to hear about important topics presented by experts in the industry, and share experiences and issues. The meetings are open to all ECHO members, and those interested in learning about ECHO, offered in a casual atmosphere where the cost of attendance is the price of your lunch. The sessions last about an hour and a half. Check-in with the ECHO Panel Secretary for details and to register.
Please join us: DATE
PANEL LOGISTICS
PANEL SECRETARY
TOPIC
August 12, 11:45 a.m.
South Bay Resource Panel Flames Eatery 88 S. 4th Street, San Jose
Geri Kennedy 408-398-4227
TBD
August 14, 11:45 a.m.
East Bay Resource Panel Massimo Restaurant 1603 Locust St., Walnut Creek
Cindy Wall, PCAM 925-830-4580
TBD
August 19, 11:45 a.m.
Wine Country Resource Panel Serv-Pro 377 Blodgett St., Cotati
Pam Marsh 415-686-9342
Screening Vendors
Sept. 3, 11:45 a.m.
North Bay Resource Panel Contempo Marin Clubhouse 400 Yosemite Dr., San Rafael
Denise Wolford, CCAM 415-458-3537
Fraud Prevention
Sept. 8, 11:45 a.m.
Central Coast Resource Panel Michael’s on Main 2591 S Main St., Soquel
Ann Thomas 800-537-4098 ext.7530
TBD
Sept. 16, 11:45 a.m.
Wine Country Resource Panel Serv-Pro 377 Blodgett St., Cotati
Pam Marsh 415-686-9342
Vents, Chimneys and HVAC
REGULARLY SCHEDULED RESOURCE PANEL MEETINGS Panel
MEETING
location
Maintenance
First Wednesday, Even Months
ECHO Office, San Jose
North Bay
First Thursday, Odd Months
Contempo Marin Clubhouse, San Rafael
East Bay
Second Friday, Even Months
Massimo Restaurant, Walnut Creek
Accountants
Second Monday, Odd months
Scott’s Seafood Restaurant, Oakland
Central Coast
Second Tuesday, Odd months
Michael’s On Main, Soquel
South Bay
Second Wednesday, Even Months
Flames Eatery, San Jose
Wine Country
Third Wednesday, Monthly
Serv-Pro, Cotati
Legal
Quarterly
Varies
40 echo-ca.org
ECHO honor roll
ECHO HONORS VOLUNTEERS Resource Panel Chairs
Seminar Speakers
Recent Contributing Authors
Accountant Panel Adam Haney, CPA 888-786-6000 x317
East Bay John Gill, Esq. Beth Grimm, Esq. David Levy, CPA Andrea O’Toole, Esq. Alex Noland, Esq. Ann Rankin, Esq. David Stompe Mark Wleklinski, Esq.
January 2015 Tyler Coffin Sara Montecino Stephanie J. Hayes, Esq. Steven S. Weil, Esq.
Central Coast Panel John Allanson 831-685-0101 East Bay Panel Cindy Wall, PCAM, CCAM 925-830-4580 Legal Panel Mark Wleklinski, Esq. 925-280-1191 Maintenance Panel Judy O’Shaughnessy 408-839-6926 North Bay Panel Diane Kay, CCAM 415-846-7579 Stephany Charles, CCAM 415-458-3537 South Bay Panel Susan Hoffman, PCAM 510-683-8614 Wine Country Panel Pam Marsh 415-686-9342 Legislative Committee Paul Atkins Jeffrey Barnett, Esq. Sandra Bonato, Esq. Jerry Bowles Oliver Burford Joelyn Carr-Fingerle, CPA Chet Fitzell, CCAM John Garvic, Esq., Chair Roy Helsing Geri Kennedy, CCAM Wanden Treanor, Esq.
Annual Seminar John Allanson Tyler Berding, JD, PhD Ricky Chu John Garvic, Esq. Sandra Gottlieb, Esq. Matthew Harrington, Esq. Stephanie Hayes, Esq. Julia Hunting, Esq. Zer Iyer, Esq. Ken Kosloff David Levy, CPA Kerry Mazzoni John Neal Andrea O’Toole, Esq. Terin Reeder Amy Tinetti, Esq. Chad Thomas, Esq. Wanden Treanor, Esq. Steven Weil, Esq. David Zepponi
February 2015 Tyler Berding, Esq. David Levy, CPA Carra S. Clampitt, CCAM Shelly L. Coleman, Esq. Regan Brown Robert E. Aune, Esq. March 2015 Paul P. Terry, Jr., Esq. Patricia Wendleton David Swedelson, Esq. Robert M. Nordlund, PE, RS Bob Gourley April 2015 Julie Adamen Thomas Connelly Robert Rosenberg Rosalia Burgueño Tapia, Esq. Burt Dean May 2015 John Allanson Sharon Glenn Pratt, Esq. Tom Del Conte Helen Loorya, PCAM, CCAM, CMCA Hanh Pham, Esq. June 2015 Ken Kosloff Tom Fier, Esq. Alex Guy and Rob Rosenberg David Larsen, Esq. Steven S. Weil, Esq. July 2015 Jeffrey A. Barnett, Esq. Kurtis Shenefiel, PCAM, CCAM Tom Fier, Esq. Bob Gourley Tyler P. Berding, J.D., Ph.D. Ann Thomas
August 2015 | ECHO Journal
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legislation at a glimpse
Catch up on 2015 Legislative Session! The bills below represent the ECHO Legislative Committee’s review of the 2500 bills introduced in Sacramento this year. As we approach the end of this year’s Legislative Session, look closely for bills that may impact your HOA. All bills must pass out of the Legislature by September 11th in order to reach the governor’s desk. For the most up-to-date information, visit the HOA Advocacy section at the ECHO website:
Current Legislation Bill Information
Summary
AB 349
Turf & Synthetic Grass
Oppose
Amended 6/17. This bill would further narrow the ability of an HOA to restrict low water-using landscaping. It would void any provision of the governing documents or HOA guidelines that prohibit the use of “artificial turf or any other synthetic surface that resembles grass.” A recent amendment also prohibits HOAs from requiring an owner to “remove or reverse water-efficient landscaping measures” when California’s state of emergency ends. ECHO supports California’s efforts to reduce water consumption in HOAs, but believes that each HOA should be able to establish its own low water-using landscaping standards.
Author: Gonzalez Status: In Senate Judiciary
AB 587
Mobilehomes: Nonpayment or Late Payments
Support
Amended 6/23. Current law prohibits the State from issuing a new title to a mobilehome buyer when of any outstanding charges or liens exist as a result of the previous owner’s failure to pay certain fees and penalties, including the vehicle license fee. This bill would waive those fees and allow for the title transfer.
Author: Chau Status: In Senate Transportation and Housing
AB 596
FHA Approval Disclosure
Oppose Unless Amended
Amended 6/9. This bill would require a common interest development to disclose its status as a Federal Housing Administration (FHA)-approved condominium project. This information is publicly available online, making this obligation is unnecessary. It also creates a potential liability for associations. ECHO favors an amended disclosure that would inform recipients that the information is available from the FHA website.
Author: Daly Status: In Senate – to Special Consent Calendar.
AB 1152
Limiting Construction Defect Lawsuits
Oppose
Now a two-year bill. This bill narrows the options for associations seeking recovery for construction defects. Recent case law allowed associations to recoup damages through sources and methods not outlined in Section 896 of the Civil Code. This bill would establish Section 896 as the sole remedy for construction defect claims.
Author: Frazier Status: In Assembly Judiciary
AB 1335
Fees on Recorded Documents
Oppose
Amended 6/3. In order to fund affordable housing, this bill would impose a $75 fee whenever a document is recorded in California. Associations record numerous documents, including governing documents and liens. ECHO believes that recorded documents are not the appropriate instrument to fund affordable housing.
Author: Atkins Status: Assembly Third Reading
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legislation at a glimpse
Current Legislation (continued) Bill Information
Summary
AB 1448
Clotheslines as Solar Energy Systems
Neutral
Amended 6/16. This bill originally identified clotheslines as a “solar energy system” and prohibited associations from restricting or prohibiting the installation and use of clotheslines. The author worked with ECHO to address safety and oversight concerns, and amended the bill to allow associations to place reasonable restrictions on the use of clotheslines and drying racks.
Author: Lopez Status: In Senate Judiciary
SB 244
Mobilehomes: Injunctions
Support
This bill would extend, indefinitely, the right of a mobilehome park to petition the court to enjoin a continuing or recurring violation of a reasonable rule or regulation of the park.
Author: Vidak Status: Consent Calendar. In Assembly.
SB 290
Substituted Service of Process
Support Status: In Senate Judiciary
Now a two-year bill. In a foreclosure proceeding, associations are required to provide certain notices by personal service. When an owner is unavailable, this bill would allow the association to serve the owner by “substituted service,” a less restrictive process.
SB 328
Notice of Pesticide Use by Landlords
Oppose Unless Amended Status: In Assembly Judiciary
Amended 5/4. This bill would require that a landlord or the landlord’s authorized agent provide a current tenant with notice about the use of pesticides at the dwelling unit. ECHO supports an amendment clarifying that an association, its officers, directors, agents or representatives would not be considered an “authorized agent” of a landlord.
SB 419
Sale Signs in Mobilehomes
Watch
Amended 5/19. This bill would permit the use of yard-arm style “for sale” signs in mobilehome parks, some of which are common interest developments.
Author: Vidak
Author: Hueso
Author: McGuire Status: In Assembly Housing and Community Development
SB 477
Mobilehomes: Property Tax Postponement
Support
Amended 4/29. This bill would allow qualified individuals and owners of mobile or floating homes, some of which are common interest developments, to seek postponement of ad valorem taxes. This option is already available to owners of real property.
Author: Leyva Status: In Assembly Local Government
SB 655
Mold & Substandard Housing
Watch
This bill specifies that visible or otherwise demonstrable mold growth, excepting mold caused by inadequate housekeeping practices or ventilation, is a “substandard condition” and could cause a building in which such a condition is found to be deemed substandard.
Author: Mitchell Status: In Assembly Housing and Community Development
What Do You Think? Read more about HOA legislation on our website or visit our Facebook page and join the discussion. On the web: echo-ca.org/hoa-advocacy, On Facebook: facebook.com/echoorg
August 2015 | ECHO Journal
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