ECHO Journal - May 2018

ECHO 46th Annual Seminar p.8

De-Escalating Conflict

p.10

Does Your Association Need a Crime Prevention Plan? p.18

Insurance Lessons From the California Fires

Defining Expectations: The Key to Great Board and Management Relationships

p.26

Serving Community Associations

ECHO Santa Clara

p.30

May/June 2018

echo-ca.org

46th Annual Seminar & Trade Show p. 8

ECHO 1960 The Alameda STE 195 San Jose, CA 95126 Change Service Requested

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696 Kings Row, San Jose, CA 95112 696 Kings Row, San Jose, Phone: 408-292-8300 x2 CA 95112 408-292-8300 x2

news from ECHO

News From ECHO May 2018 Are you coming to ECHO’s Annual Seminar on June 16th? I hope so – this will be ECHO’s 46th event, and it’s grown to be the best opportunity for HOA board education in California.

The Annual Seminar is about board education – 12 sessions in three different tracks, with topics ranging from new laws and leadership to managing vendor relationships and handling social media groups. Life on an HOA board is getting more complicated every year, and we know you’ll learn something at the Annual Seminar to help your association grow with the times.

And when you’re not busy learning, visit with nearly 100 professionals on the trade show floor. Each exhibitor at the Annual Seminar knows the HOA industry, and the trade show floor is a great place to win big and small prizes, and to connect with people who understand your association’s needs. Talk to your fellow directors, and find out how they cope with com-mon problems.

Finally, please take a moment to nominate someone you know for our Association of the Year or Board Member of the Year awards. HOA life can be difficult and we want to recognize the people who do amazing work in our communities. Maybe it’s you! Find out how to nominate someone on page 24 – we’ll announce the winners during lunch at the Annual Seminar.

Thank you for being members of ECHO, and for volunteering in your communities. I’m honored to be a part of this important organization, and I hope to meet you in June!

Sincerely,

Tyler Coffin Executive Director

May/June 2018 | ECHO Journal

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CONTENTS

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26

8

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De-Escalating Conflict Conflict is an inevitable part of serving on an HOA board. Whether you are confronting an owner at a violation hearing or disagreeing with a fellow board member about association business, you’ll need tools to navigate the conflict. Here, a trained mediator gives you advice on how to deal with disagreement successfully.

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Does Your Association Need a Crime Prevention Plan?

Property crimes like theft and vandalism are problems everywhere, and some Bay Area communities have reported an increase in criminal activity in recent months. Because condominium and townhome communities can be especially attractive targets, vulnerable communities may want to consider a crime prevention plan.

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Insurance Lessons from the California Fires California’s North Bay fires were devastating to some of our HOA communities. As they slowly rebuild and plan for the future, other boards are wondering if their insurance would cover a similar catastrophe. This article looks at several options, and explores the difference between guaranteed replacement cost, extended replacement cost, and blanket coverage.

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Defining Expectations If your relationship with your management company is suffering, the problem can often be traced to poorly defined roles and expectations. What is the role of the board? What is the role of management? And how much time will management spend on your account? This last question, sometimes called “level of service,” is often where the trouble lies. Defining your level of service with your manager can help to improve your relationship and services.

The ECHO Journal is published bi-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 2018 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 Vice President Adam Haney Treasurer Diane Rossi

DEPARTMENTS

3 6 7 8 24 34 36 37 38 40 41 42

News from ECHO 2018 ECHO Educational Calendar Nominating Committee Seeks Candidates for ECHO Board ECHO 46th Annual Seminar — Saturday, June 16th, 2018 2018 Association Awards Join Us for an ECHO Event ECHO Volunteers ECHO Event Calendar ECHO Bookstore New Professional Members Advertiser Index Legislation at a Glimpse

Directors Sandra Bonato Jerry L. Bowles Rolf Crocker Sarah Dunia John Gill

David Levy Karl Lofthouse Sandra Long Jeffrey Saarman Wanden Treanor

Executive Director Tyler Coffin Marketing Communications Specialist Priscilla Ann Ornido Design and Production Design Site ECHO Mission Statement Fostering a better quality of life in community associations through education, advocacy, and networking.

May/June 2018 | ECHO Journal

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2018 ECHO educational calendar

2018 ECHO Educational Seminars If you’ve ever wished that ECHO would hold a seminar closer to your association, chances are that we’ll be nearby during 2018. Don’t miss an opportunity to get the education you need with guidance from some of California’s top HOA attorneys and professionals. Take a look and mark your calendar. We can’t wait to see you there!

San Rafael

San Francisco

June 16 ECHO Annual Seminar (see page 8) Santa Clara Convention Center Santa Clara, CA

DATE

EVENT

Oct. 28

Monterey Seminar, Embassy Suites, Seaside.

Register today!

Online: www.echo-ca.org

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Nominating Committee Seeks Candidates for ECHO Board of Directors

T

he Nominating Committee for the ECHO Board of Directors is seeking expressions of interest from persons who are interested in serving on the ECHO Board of Directors. Five positions on the board will be up for election at the ECHO Annual Meeting that will be held in November. These positions are for three-year terms. Current directors whose terms expire in 2018 are Sandra Bonato, Jerry Bowles, John Gill, David Hughes, and Jeff Saarman.

Board members are expected to attend four three-hour board meetings held each year, generally at the ECHO office in San Jose. Each board member also serves on one or more committees that hold regular meetings

throughout the year. In addition board members are expected to attend the Annual Meeting and a two-day board retreat each November. Board members receive no reimbursement for these activities. Nominees must also be members of ECHO, either through their homeowners association or business and have thorough familiarity with the organization and the CID industry.

Persons interested in being considered for nomination should obtain and complete a nomination and qualifications form, available by request from the ECHO office.

Every potential candidate, including incumbents, must submit a full form. All completed forms must be submitted to the ECHO office no later than August 15, 2018, to be considered by the nominating committee. Those requesting nomination may be requested to interview with the nominating committee. The committee will meet in late August to prepare recommendations for board consideration.

May/June 2018 | ECHO Journal

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Half Price for ECHO HOA Members!

ECHO ANNUAL SEMINAR 46th Annual Seminar & Trade Show Saturday, June 16, 2018

The 46th Annual Seminar is the premier educational event for California’s HOA board members. Get expert guidance and network with people who appreciate what you do! Have a blast and enjoy all that the Annual Seminar has to offer:

• • • • •

12 classes featuring top industry experts.

HOA University & Certificate.

Full buffet lunch.

Annual awards for HOA board members and associations.

Hundreds of fellow board members and HOA professionals.

Join us! Register soon - prices go up on June 1st.

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Visit the ECHO website or call ECHO for complete event details: Online bit.ly/echoAnnual18 Phone 408.297.3246

EVENT INFORMATION

SESSIONS

LOCATION:

HOA UNIVERSITY

Santa Clara Convention Center 5001 Great America Pkwy Santa Clara, CA 95054

• 9:00-10:20 Finances

David Levy, CPA Adam Haney, CPA

TIME:

• 10:40-12:00 Legal

Steve Weil, Esq.

8:00 am to 4:30 pm

• 1:30-2:50

Susan Hoffman, PCAM

FOOD: Admission includes coffee and tea in the morning and a lunch buffet in the afternoon.

PARKING: Free parking is available in the parking structure behind the Santa Clara Convention Center.

LODGING: The Hyatt Regency Santa Clara is connected to the Convention Center. Special rates are available through the ECHO website, or by calling the Hyatt at (408)200-1234.

REGISTER: Before June 1st: Members: $50, Nonmembers: $100 June 1st – June 16th: Members: $75, Nonmembers $125 Registration includes lunch and access to all sessions.

Please register online.

Management & Governance

• 3:10-4:30 Insurance

Wendy Weber Cindy Koester, PCAM

LEGAL • 9:00-10:20 Boards & Navigat- David Feingold, Esq. ing Social Media Matt Haulk, Esq.

• 10:40-12:00 Legislative Julie Mouser, Esq. Update • 1:30-2:50

Governing Document Amendments

Sandra Gottlieb, Esq.

• 3:10-4:30

Required Repairs: Michael Kennedy, Esq. the Heavy Cost John Gill, Esq. of SB 721

HOT TOPICS Event Link: bit.ly/echoAnnual18 Promo code: BC9SD4 As an ECHO member, you may register for 50% off when you apply the promotional code. Early registration ends May 18th.

How to apply the promo code to you order 1. Type the above link into your browser and select “Register” located in the top right.

2. Click the “Enter Promotional Code,” link in the top-right of the Register window.

3. Find “Enter Code,” type in the code and click “Apply Code.”

4. Confirm your entry was successful. You should see the “Price” and “Fee” update to reflect the discounted amount.

• 9:00-10:20 Leadership

Rolf Crocker, CCAM

• 10:40-12:00 Developing Rob Rosenberg Successful Vend- Lisa Esposito

or Relationships

• 1:30-2:50

Aging in Place

TBA

• 3:10-4:30

Ask the Attorneys

John Garvic, Esq.

PLATINUM SPONSORS

May/June 2018 | ECHO Journal

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De-Escalating

Conflict

E

very day we negotiate something in our lives and sometimes those negotiations can escalate and turn into a conflict: a contract negotiation; a violation hearing; a board meeting; a commute to work‌. From my own experience as a Community Association Manager and trained mediator, I would like to provide some suggestions for methods and tools you can use when dealing with a potential conflict or escalation.

By Susan L. Hoffman

May/June 2018 | ECHO Journal

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You in a Conflict

T

he first consideration in most situations is for ourselves, as we are selffocused, and when I talk to myself I consider things about me in the first person.

It is a rare individual who considers the other party first during a negotiation or engagement. In keeping with that idea I would like to suggest that the management of yourself in a conflict has a large bearing on the outcome of the situation.

The fact in any situation is that you have the ability to control yourself completely including your actions and reactions. But you can’t control others.

Stay Calm In any situation, I suggest entering with intent, or since I grew up in Silicon Valley, I will suggest that it is a program running in the background of your mind. I like to count to ten and at the same time take some deep breaths. The goal here is to focus on myself and remind myself that I want to stay calm, even if it sounds like there may be an attempt by the other person to attack me personally. If you lose your temper, you give away your power. But while you are calm, you have power to resolve the conflict successfully and satisfactorily. Put another way, you have more control over the progress and the outcome by remaining in charge of yourself, and if the situation does escalate, try to take consolation in the consid12 echo-ca.org

eration that you remained calm and your contribution to the escalation was minimal.

Accept Responsibility for your Contribution to the Escalation Returning to the earlier notion that we humans think of ourselves first, some of you might be thinking “I don’t have any responsibility in this…”, however, if you will suspend judgment for a moment and just follow my thought process, there is an old saying that “it takes two to tango”.

You can still think or know that you had no participation in the escalation, but my suggestion here is that you accept responsibility for your contribution to the escalation. It could be silently to yourself: “Okay, I am here and participating in

this…”, or remind yourself you sent the violation letter, etc. Out loud you could offer consolation to the other party and advise them you are sorry that a violation letter had to be sent to them, or that there are rules the Association has and perhaps they were not communicated fully to or understood by the resident, etc. Another time-tested suggestion is “Agree quickly with thy adversary”. This can cause a number of interesting effects, such as taking some of the tension out of the other person, or giving them pause, rendering them speechless, etc. It also offers the opportunity of more ‘common ground’ for the discussion which I’ll cover in a moment.

Be Conscious of your Body Language

While you process the situation, and focus on being calm, you should at the same time consider what your body language is saying. If you are standing with your arms at your sides, feet slightly apart, facing the other party, preferably outside their personal space, you will be perceived as more open and present.

Crossing your arms and/or your legs, not facing the party you are speaking with; rolling your eyes; scowling; even not making eye contact, can be taken by the other party as resistance; disinterest; condescension; and any number of things we human creatures can imagine in the situation, other than what might be the true intent. Try to appear ‘open’ to the other party during the conversation by using your body language: smile – if appropriate to the conversation or something you are saying; lean slightly toward the other party, preferably not in a menacing way; and look them in the eye.

Moderate your Tone

Listen Actively Listening actively to me means that you listen fully to what the other person is saying, without interruption. If you stop them part of the way through their comment or statement, it reflects back to them that you are not listening to their full statement or comment and, in fact, what you are doing is thinking about you and what you are going to say. Let them say everything they want to say; try to listen to the intent or statement and not necessarily the words they are using to communicate. Even pausing for a moment after they have concluded their statement can convey that you have listened and are considering your response. Repeating your understanding further underlines that you are engaged and listening. Additionally positive audible tones, such as ‘hmmm’ or ‘ok’ or ‘yes’ at appropriate intervals from you that indicate you are listening and considering may be useful.

Ask Questions Another tool that I sometimes find useful is to ask questions of the other party, as long as they are consistent with the subject of discussion and what you have heard them saying. This goes handin-hand with the listening actively suggestion. Repeat back to them, perhaps in gentler language if possible, what you heard them say and ask them to agree that you have understood them correctly.

Many times tensions can be defused if the other party believes that you have heard them. Many times all someone wants is to be heard.

Acknowledge the Other Person’s Emotions and Feelings

As important as your ‘presence’ of calmness and your body language, you want to consider the tone of your voice. Saying something in a pleasant tone, even if it is not something welcomed by the other party, adds to the potential de-escalation of the conflict.

Consider your Language and Phrasing Many people like to make declarative statements and many times in a tense situation, the other party may take such a statement as an attack. Consider the words you are using, and try to be inclusive, such as ‘I think you may agree with me that…” rather than “you should know…”

Try to be inclusive and avoid trying to appear or sound separate from the other person or situation. This goes back to accepting responsibility for the situation.

A phrase to avoid at all costs: “You People….” This immediately separates you from the other person and appears that you are trying to pass judgment, or any other number of connotations that are not in keeping with your attempt to deescalate the conflict!

May/June 2018 | ECHO Journal

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Sometimes this is as simple as noting that you understand they are upset, or that something is unpleasant, or that they are very passionate about a situation. Often you can use the acknowledgement as a way forward in the conversation, such as: “Joe, I understand you are very passionate about… but perhaps we could find some mutually agreeable solutions to this situation…” Validation of their feelings and emotions is key to acknowledging the individual and their position.

Focus on the Future There are two parts to this suggestion, one for you personally and one for the situation. If I am entering a mediation, I like to visualize the conclusion of the mediation and see it as coming out successfully. I don’t mean that I am dictating an outcome, just that we got through it and have a resolution accepted by all sides, whatever that may be. When I am in a managed situation such as mediation, I can stop and plan for the successful outcome. When you have to focus on an escalating situation, as part

of your self-control program, think to yourself quickly that you would like to see the situation calmly and quickly resolved. Now with regard to focusing on the future in your interaction with the other party, you can incorporate this idea as a suggestion in asking how they see the resolution to this issue coming about or what they perceive the possible solutions to be. This way you are looking forward and setting the tone to hopefully come to a peaceful and equitable resolution.

Find Common Ground Try to look for commonalities in the other person, and I know this is easier said than done in the heat of a passionate discussion. This could be something as silly as reminding yourself that this person puts their clothes on the same way you do; or they have a child, you have a child; or you both live in the same community. If you try you will probably find thousands of things that you have in common. No one can tell me that they don’t have something in common with another human being – we share the

same planet, we are within a few feet of each other, we breath the same air… sometimes it is a chore to find and share commonalities but thinking and suggesting that you are on common ground again helps to relieve tension.

Don’t say ‘NO!’ What I am advocating here is do not say ‘No’ in a final manner that leaves no room for further discussion. Of course there will be instances when you do not agree, or cannot agree to something, but instead of slamming the door with an irretrievable ‘No’, try instead phrasing things to reflect that a proposed solution would not be viable, however there are other alternatives or options. Many times in our practice, we need to advise a homeowner that something is not the Association’s responsibility. But instead of saying a flat no, our philosophy is to advise that “the Association is not responsible for that situation, however we can suggest that you try [something else].”

For example, if the owner needs a contractor to repair something, I suggest they try HomeAdvisor or Angie’s List, or in some cases the Association has a chat group and they can ask for their neighbor’s suggestions. In other words I am suggesting you do say no, but you do it in such a way that you offer something of value to them to soften the no.

Management of a Potential Conflict In a managed situation where conflict is a strong possibility, such as an Internal Dispute Resolution (IDR) or a hearing, you have the advantage of preparation.

So while you continue to incorporate the above principles concerning how you will act, you can now also change the environment in which a potential conflict may occur.

Rules of Conduct 14 echo-ca.org

When we are setting the stage for a Hearing or IDR we use a set of ‘Rules of Conduct’ or ground rules that we provide to the parties in writing, ask them to sign the rules to acknowledge them, and review them verbally before we get to the matter at hand. A sample of the Rules of Conduct is available at the end of this article.

Designate a Chair Before the parties all arrive in the room, there should be an agreement amongst the ‘hosts’, such as the Board, as to who will act as Chair for the IDR or Hearing.

That person should be the primary spokesperson and will be charged with controlling the meeting, maintaining order, and making decisions to conclude, recess, who has the floor to speak, etc. You can liken this position to the President or Chair of your Board but alternately I liken it to a judge in a courtroom. I prefer this analogy because you are going to ask the parties to direct their comments to the Chair, just as you would in court with a judge, and not to each other.

Set up the Room In anticipation of a hearing or IDR, and in keeping with the theme of controlling the environment, you should physically arrange the room to facilitate open dialogue and efficient resolution of the matter.

I advocate for the Chair to be in front of the parties by several feet, and that there is a table. You could hold an IDR in a circle without tables, and that is a preference I leave to you. If the matter is a neighbor-to-neighbor issue, I have chairs facing the Chair of the meeting, usually with a table for the Chair so that he or she can make notes easily or as a platform if a gavel is in use. The parties sit side by side facing the Chair, with a reasonable distance between them, and if they have witnesses or legal counsel I deploy them to the outside of the parties and slightly to the rear. I also like to make sure that poor lighting or glare is not affecting 16 echo-ca.org

anyone’s ability to see everyone else clearly, and I prefer strong light in the room.

Lay the Ground Rules Once all the parties have assembled in the room, the Chair should review the ground rules with the parties, to include: address comments to the Chair; wait to be recognized by the Chair; do not interrupt the other party; do not use profanity, etc. If possible, issue the ground rules in advance of the hearing/ mediation and advise the parties that everyone will be required to sign the rules before the event will convene.

Control the Interaction The Chair will need to monitor the interaction to ensure that the parties do adhere to the Rules of Conduct. The Chair should call attention if someone interrupts, uses inappropriate language, etc. The tools that the Chair has in managing this situation are absolute – just as a Judge in court: the Chair can call a recess; the Chair can call for a separation of the parties so that one side can be spoken with privately – but if you do this I suggest you treat both parties the same and speak privately with the other party, for the same duration if at all possible – you do not want the appearance of partiality.

The Chair can excuse someone who cannot conform to the Rules of Conduct; and the Chair can declare that the hearing or meeting is concluded.

Manage the Time The Chair is also responsible to keep the meeting, hearing, or negotiation on track.

Preferably the Chair has announced an intention at the beginning of the meeting regarding the timing, such as stating that the hearing is intended to take 20 minutes.

Whatever the timing, the Chair should

ensure that everything proceeds as efficiently as possible. If there is another neutral party in the room, such as the Manager, the Chair can delegate the time keeping to that neutral party. I use my smart phone with a timer which announces when the time has run.

Conclude and Follow Up If things are going well, the conclusion may come swiftly – the parties all agree to a solution. The Chair at that point should clarify the solution, the actions to be taken by the parties, and there should be some requirement for someone from the meeting to report out in writing to the parties. In some cases I have seen the use of a handwritten agreement, written up and signed in the hearing to ensure that the agreement is immediately memorialized before the parties leave the room. If such a document is used, it should be immediately distributed to all parties as soon after the meeting as possible.

Resources There are many resources available to you via ECHO, the internet and other mediation and conflict resolution groups, here is a short list:

ECHO Website: www.ECHO-CA.org Northern California Mediation Association: www.mediate.com American Arbitration Association: www.adr.org National Association for Community Mediation: www.nafcm.org

Susan Hoffman, PCAM is Founder, CEO & Community Association Manager for Professional Association Services, Inc. and OAS Management.

She is a trained mediator and a nationally-recognized expert in Community Associations and their operations. Susan is also the co-founder of ECHO’s North Bay Resource Panel. Her company may be found online at www.pas-inc.com.

ABC Homeowners Association Neighbor to Neighbor Meeting to Discuss Conflict February 21, 2018, 7:00 pm

• All parties will have the opportunity to provide their story, make their statements, ask questions, and respond, without interruption by the other parties present.

• The Chair/Moderator will acknowledge one person who will then have the floor to make their statements. All other parties will remain quiet, but may make notes of their questions or comments for use when it is their turn.

• All parties are to be respected and will be allowed equal time to make their statements.

• Everyone is asked to behave in a polite and courteous manner.

• Comments/questions/statements regarding race, religion, familial status, sexual orientation, religious beliefs, gender, age, nationality, ethnicity, disabilities, and personal life preferences will not be accepted or tolerated.

• All language should be respectful and civil; profanity will not be tolerated.

• The purpose in this procedure is to find common ground and a way forward, or resolution, to the situation(s) at hand.

• Questions, statements and responses must be addressed to the Chair/ Moderator and not to anyone else in the room.

• Only HOA invited guests will be permitted at this meeting.

• All parties in attendance will need to sign and date this agreement prior to the start.

• All information provided and shared in this Neighbor to Neighbor meeting is confidential and cannot be shared, in part or in whole, outside of this meeting.

___________________________________________________________ ____________________________________________ Print First and Last Name

Signature

___________________________________________________________ ____________________________________________ Print First and Last Name

Signature

___________________________________________________________ ____________________________________________ Print First and Last Name

Signature

___________________________________________________________ ____________________________________________ Print First and Last Name

Signature

___________________________________________________________ ____________________________________________ Print First and Last Name

Signature

___________________________________________________________ ____________________________________________ Print First and Last Name

Signature

___________________________________________________________ ____________________________________________ Print First and Last Name

Signature

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Does Your Association Need a

Crime Prevention Plan?

By Thomas Connelly

May/June 2018 | ECHO Journal

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M

any communities in the Bay Area and beyond have seen an increase in thefts, trespassing and other criminal activity in recent months.

Over the past few months I’ve fielded numerous requests from association managers and boards to conduct security assessments because of increased incidents of burglary, car break-ins, thefts from storage areas, trespassing, mail theft and package thefts occurring in their communities. Property crimes (burglary and thefts) seem to be problems everywhere. And condominium and townhome communities can be attractive targets for criminals. While the root causes of the increasing criminal activity we’re experiencing are unclear, there is no debating that it is negatively impacting our communities.

Safety and security are important considerations when we decide where we want to live.

After all, safety ranks second in Maslow’s hierarchy of human psychological needs, just behind food, water and shelter.

People want to live in a safe environment, free from the fear of crime, victimization and injury. Even small crimes can make victims feel uncomfortable and violated. And yet, in spite of our best efforts to lock our doors, to remove valuables from our cars, and to employ good security and safety practices wherever we are, we become victims of criminal acts.

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Community managers and homeowners’ association leaders are dealing with homeowners who feel less secure in their communities than they did just a few short years ago because of criminal activity.

They’re also considering how to best address these legitimate complaints and concerns within their communities.

How might a community association take proactive steps to reducing crime in their neighborhoods? I have found that the following four-step process works well in assessing vulnerabilities and developing comprehensive plans to address safety and security needs for my community association clients.

Step #1 Develop Understanding of Background Information and Data Analysis A good safety & security plan must be based upon a clear understanding of the problems. The answers to a series of analytical questions can help: what kinds of criminal activity is the community experiencing? When and where have they been occurring? Are they spread throughout the community or are they localized? What security measures are already in place? What resources (money, time and people) is the community willing to commit to address the problems? Are there opportunities to partner with other local resources or communities? Does the local policing agency provide any support or services?

Has anything been done in the past, successfully or unsuccessfully, to address similar issues?

The list of questions is unlimited. There

will be a myriad of additional questions to answer in this stage, because the analysis is developed based upon the specific community’s situation. In my experience, the more detailed answers and research you have, the better your analysis of the situation will be. I find that it is always better to ask too many questions than to leave important ones unanswered!

Once there’s a clear understanding and analysis of the underlying issues and problems, we can move to the next step.

Step #2 Evaluation and Assessment This process is intended to identify what measures are in place, to consider measures that were tried in the past, and to consider new measures that could potentially address the specific safety considerations and shortcomings identified in the research phase. I have found it easiest to evaluate and assess community security strategies by dividing them into three distinct categories.

The first category is “Systems” Systems include anything installed to enhance security and safety (e.g. lighting, alarm systems, video surveillance, access controls, perimeter controls, fencing and walls, signage, security locks, etc.). While security systems can be effective in deterring, preventing, and documenting criminal activity, they all involve a significant commitment of association funds. In

many cases, those costs are prohibitive for homeowner associations. In addition, community managers and association leaders typically don’t have the expertise or bandwidth to develop and manage complicated security system projects and maintenance. However, there are ways to reduce the cost of security systems, and some can be implemented rather inexpensively. Each community’s situation is unique. Regardless of the perceived fiscal limitations, security systems are an essential consideration in any security plan.

The second category is “Security Services” Security services include officers or companies hired to monitor the property (full or part-time). They typically monitor access to community entryways and at other controlled access points. Security officers might also be tasked with patrolling your community to detect, prevent, and intervene in criminal activity when it is occurring. At a minimum, uniformed security guards act as a visible deterrent to criminals intending to victimize your community. While the deployment of security officers is effective, it is never 100% effective and should not be the only strategy to prevent crime. Additionally, hiring security guards is expensive, and can cost a community thousands of dollars annually. Contracting with a security services provider is similarly expensive. Sometimes it is difficult to evaluate the effectiveness of security services because we never really know what crimes they have deterred simply because of their presence. While security services might not fit the needs of all communities, it should be considered when conducting any security assessment and writing a security plan.

The third category is “Community Engagement” I’ve always found that a community of educated, engaged and attentive residents tends to experience less criminal activity.

When a community is actively involved in crime prevention it is obvious to most

criminals because it is visible and palpable. There are many strategies to help engage your community to take proactive steps to enhance their security and safety. Information sharing is one important part of that strategy. Most community associations distribute periodic newsletters, in which crime reports and crime prevention strategies could be regularly included. Likewise, community websites and bulletin boards should be used for the same purpose.

Communities can also hold periodic meetings (possibly including local governmental public safety organizations and private security/safety presenters) to discuss crime trends, prevention strategies, personal safety, all while encouraging community activism as part of the comprehensive safety strategy. Establishing neighborhood or community watch groups increases the number of watchful eyes in the community, which has proven effective in crime reduction and prevention. Community

engagement is a critical part of the solution that you’re seeking and it is relatively inexpensive. Whether or not I determine that a community is engaged during my initial review and analysis, capitalizing on community involvement is always in my recommendations!

While all three of these components are important for a board to consider when working to enhance community safety and security, none is individually better than the other. Communities are best served when multiple components are orchestrated in concert with each other.

By remaining open and flexible during the development of a security plan, your community is more likely to construct a comprehensive approach appropriate to its unique needs, resources, and physical characteristics.

Once the evaluations and assessments have been completed it’s time to move to the next step, plan development.

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Step #3 Build a Comprehensive Plan Being armed with comprehensive assessment of the issues, an understanding of your existing security and safety strategies, and having considered various alternative courses of action, it is now time to work on developing a formal security plan. The plan incorporates the results of the work in Step #2 and, taking into consideration the community’s limitations, offers possible courses of action. As you might suspect, most of the hard work has already been done in steps one and two. This step simply involves the incorporation and prioritization of alternatives identified in steps 1 and 2 into written form. The plan can be as simple as developing a checklist with a timeline for implementation or it can be very detailed and specific depending upon the particular community’s expectations. No matter what, the process cannot be completely successful if it doesn’t result in the development of a formal written plan and implementation strategy.

Step #4 Implementation This step should be relatively easy, because the plan of action is already set. Implementation can become somewhat complicated, however, if the plan calls for complicated “systems” projects, especially if there’s a need to implement or coordinate projects over a lengthy period of time. A critical part of this step is to clearly identify and assign roles, responsibilities and timelines. Clear assignments and deadlines provide both clarity and accountability. The final phase of step #4 is to evaluate the implementation at predetermined intervals to ensure that the implementation was carried out per the plan.

At this point you might be asking yourself, “How do community managers or HOA board members realistically conduct security assessments and develop security plans for their communities?”

I recommend finding someone with

expertise in the field (someone from the local policing agency, a private security consultant, a resident with applicable knowledge and skills, a private security company, etc.) and engaging them to coordinate the assessment process in concert with the manager or board. No matter who does the assessment, the board should be involved in developing the formal plan and coordinating the implementation of the plan so that it best serves community needs and limitations. In reality, your plan might be very simple (e.g. a one-time expenditure of funds and implementation of internal security processes) or it may be more complex, potentially identifying larger projects to be completed over a lengthier period of time. In any case, the board should clearly identify the purpose of the project(s) and the board’s policy relative to the project(s), particularly when the timeline is longer than the board’s anticipated tenure in office.

That way, the plan and supporting

intent will be clearly articulated for future boards to act upon, if necessary.

In closing, I want to re-emphasize that communities must be proactive in protecting themselves from criminal activity and other safety threats, especially in these times of increasing criminal activity. Successful implementation of a comprehensive and balanced security plan provides peace of mind and a better sense of safety and security for everyone in the community.

Mr. Connelly is the owner of Connelly Consulting, a public safety consulting company located in Santa Clara, CA. He is a retired Captain from the Los Altos (CA) Police Department. He was the department’s Operations Division commander and developed the City’s emergency/disaster response plan. Mr. Connelly is currently the president of the board of directors for an HOA in Santa Cruz County. He has authored several articles for the ECHO Journal and other industry publications, and is a frequent presenter at community association training events. He can be reached by e-mail (tom connellyconsulting. org) or via his company website (www.connellyconsulting.org).

May/June 2018 | ECHO Journal

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2017 Homeowner Association of the Year THE VILLAGES ASSOCIATION

2017 Board Member of the Year ANN MARQUIS-FISHER

2018 Association Awards All nominations are due by May 18th

We’re accepting nominations for ECHO’s 2018 Association Awards. Do you know an amazing board member or association? Tell us! ECHO will announce the 2018 Association Awards winners at the ECHO Annual Seminar on June 14th.

The Homeowner Association of the Year award recognizes an outstanding ECHO Member Association whose board demonstrates continuing commitment to education and excellence in governance.

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The Board Member of the Year Award recognizes an individual board member who demonstrates outstanding leadership in his or her HOA community, commitment to education, and works actively to support ECHO's mission. Visit the ECHO Blog to find the online nominations form: echo-ca.org/blogs 2017 HOMEOWNER ASSOCIATION OF THE YEAR The Villages Association 2017 BOARD MEMBER OF THE YEAR Ann Marquis-Fisher President, Deer Oak Association

Insurance Lessons fro

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m the California Fires

By Kevin Boland

May/June 2018 | ECHO Journal

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A

fter the devastating California fires, my insurance agency received many calls about building replacement coverage.

Board members want solid confirmation that they have enough money in their property insurance to rebuild after a major fire. Individual condo and PUD owners want to make sure that they have enough coverage to replace all of their personal property and their expensive kitchen

and bathroom upgrades. My professional advice when it comes to replacement cost coverage is the same as it is for having friendly neighbors - More is Better.

This article will explain how insurance companies insure common buildings so you can select the right type and amount of coverage to protect your HOA if a major fire, gas explosion, or sinkhole collapse occurs (yes, sinkholes are an insured peril). There are three regular methods that insurance carriers use to insure HOA common buildings. Let’s review them.

Guaranteed Replacement Cost Guaranteed Replacement Cost (or GRC) means that the carrier will pay to rebuild all common buildings, including the clubhouse, post total loss. It’s a guarantee which means if the cost of labor and materials unexpectedly soars - as it has now in California - the carrier guarantees to rebuild. As long as the board agrees to use the building replacement cost figures that the Agent and the insurance carrier recommended when they quoted and issued the policy, and any coverage increases at renewal, the company will pick up the entire bill to reconstruct, minus that darn little thing called your deductible. Is it wise to insure this way?

Absolutely.

Extended Replacement Cost Extended Replacement Cost (or ERC) means that the carrier will pay to rebuild the common buildings, including the clubhouse, plus…….. an extra “dollar amount” which is often 25% above the stated dollar amount on the policy’s declaration page. Similar to the GRC, as long as the board agrees to use the replacement cost figures that the Agent and carrier recommended at quote & issue, and any increases at renewal, then the carrier will foot the bill for an extra 25% above the stated limit on the policy’s declaration page. It’s not a guarantee to rebuild, only a guarantee to pay the General Contractor an extra 25% or more to rebuild if needed.

Blanket Coverage Blanket Coverage (or BC) means that the carrier will pay to rebuild any one building or on-site structure damaged with a blanket or replacement cost number stated on the policy’s declaration page. The benefit to this blanket form of coverage is that no one building risks 28 echo-ca.org

being underinsured because the total number can be used for any single building damaged. Don’t be fooled and think the word blanket means the carrier will cover your total loss like your favorite blanket keeps you warm and cozy in the winter. They won’t because there is no Guarantee and no 25% Extended Replacement Cost, so if the blanket number is not high enough to rebuild, it’s off to the reserve fund or, gulp, special assessments.

Which is the wisest way to protect your HOA? Guaranteed Replacement Cost coverage costs a bit more to buy (in my experience about 5% more), but it’s smart to get it when possible: strong insurance coverage is a clear indicator of good fiduciary practices. For a recent example, Farmer’s lost an entire 46 unit HOA in Sonoma in the Nor Cal fires last October 2017. The cost to rebuild is over $10,000,000! The board purchased Guaranteed Replacement Coverage, so thankfully the insurance dollars are there to rebuild. This board also selected, “Walls-In Coverage with Upgrades”, so the quality interior

kitchens and bathrooms and all upgrades are covered under the guarantee.

If the budget is tight, the ERC or BC methods can protect HOA common buildings, as long as the replacement cost number is high enough to rebuild in the current year, and to anticipate a demand surge in costs, such California is experiencing this year and next. Remember too that many catastrophes around the country can trigger demand surges in building costs, such as Hurricane Katrina and Hurricane Sandy. This is why in my professional opinion the GRC is the smartest and safest way to guarantee that your HOA is protected after a major fire, gas explosion, or sinkhole collapse.

“Don’t be penny wise and pound foolish” is a phrase my contractor dad repeated to me often in my youth. He was talking about sturdy hand tools, but it’s great advice for insurance too. When it comes to replacement cost and building code coverage, more is definitely better.

Kevin Boland, Boland, LLC. Kevin is an HOA Insurance Specialist and Farmers Agent based in Novato, California. He and his wife have lived in their HOA for 25 years and Kevin serves on his board.

Any questions can be emailed to Kevin at Kboland@farmersagent.com.

May/June 2018 | ECHO Journal

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Defining Expectations The Key to Great Board and Management Relationships

By Rolf Crocker, AMS, CCAM

May/June 2018 | ECHO Journal

31

I

was recently asked to speak to a large group of Board members on the subject “Community Association Management – What It Is and What It Is Not”. This is not easily defined, since there are multiple philosophies from both the Board perspective and from management.

It is clear that Boards and Management have a symbiotic or interdependent relationship. And it is also clear that the successful models, regardless of their execution, are predicated on trust – trust that the Board is seeking to do the right thing and that Management will use their best skill and judgment to carry out the wishes of the Association as expressed through the Board. Since it is virtually impossible to cover all of the various iterations, I thought it best to distill it down to the following concept: Defining and Managing Expectations. The

respective roles of both the Board and Management must be clear in order to minimize confusion, clarify accountability and ensure positive results.

The Role of the Board The Board is comprised of owners elected by their peers to serve as Trustees for the organization. Their service is defined by the governing documents and the Law. The historic role of a Board of Directors is one of guidance and oversight. By guidance, I mean developing the plans and policies that will guide the actions of the organization over a defined window of time. By oversight, I mean the Board is held accountable to the membership for results, but is not down in the trenches swinging hammers or driving lawnmowers. The oversight role, by definition, requires the Board maintain a “mountaintop” perspective of where the organization is, where it needs to go and navigates well to arrive safely at the predetermined destination. This cannot be done effectively through micromanagement of minutiae. A Board has to see the forest through the trees.

The Role of Management First and foremost, management is guided by the terms of the Management Agreement (or job description for site managers). Management serves as the agent for the Association, acting in good faith and utilizing his/her best skill and judgment to execute the plan and policies of the Association. The manager actively pursues continuing education in industry ‘Best Practices’ as well as legislation and case law as it relates to the discharge of duties. As the hub of the Association, management fulfills (at a minimum) the following roles:

• Administrator – Support the Board in the execution of their duties • Implementer - Responsible for the execution of the Association’s policies and procedures • Team Builder – bring together the appropriate personnel to accomplish the goals of the Association • Customer Support – Assist owners with their day-to-day needs as it relates to the Association

Defining Expectations There are two (2) levels of defining expectations of management: 1) Contractually and 2) Operationally.

The Management Agreement (or job description) should spell out the obligations of the parties, specifically the ‘Level of Service’ expectation and its requisite pricing. Here is where most management/Board relationships fall into trouble. As an industry, management companies have historically determined pricing for service on a ‘per door’ price. Unfortunately, this does not account for the myriad requests for service that can come to management from the Association(s). There is no way to tell if there will be one or twenty violations or two or ten maintenance requests. All human resource alloca32 echo-ca.org

tions in businesses are predicated on the number of hours required to fulfill the contract. That is why the key for both management and the Board(s) is to find the ‘sweet spot’ between price and service: It cannot all be done for one low price, yet the Association should have a reasonable expectation of what it is receiving for the monthly fee.

Operationally, expectations need to be defined through some form of written plan and/or policies. To accomplish this, the Board and management need to set up an annual Orientation/Workshop event in which they can look at the Association from the macro view, map out what needs to be accomplished and set specific milestones for completion.

Only then can the Board have a true metric or benchmark to assess management’s performance in the ‘results’ category. This will also assist the Board in maintaining the ‘big picture’ view, keeping them from getting sucked down in the day to day minutiae of the Association. John Carver’s ‘Policy Governance’ model is increasingly being embraced as a way to define these expectations.

Additional information on this model can be found online at http://www. carvergovernance.com/model.htm.

Managing Expectations Management firms should review the management contract with the Board annually, so everyone is aware of the contractual obligations. Work from an annual plan (see above paragraph) and set up quarterly or semi-annual opportunities to review progress from both sides – Board and management. If clarification or corrective action is needed, it’s always better to address it sooner rather than later, as original issues will be obscured by the mounting avalanche of newer issues crashing down on you. If a Board’s expectation exceeds the contracted scope of work, ask management to define it in writing, including compensation. Always work to build a trusted Team relationship.

There’s No ‘I’ In Team

Of course, there’s no ‘we’ either, but there is a core concept to embrace on both sides, one that I’ve referred to before and that is this – it’s not about me (you). The symbiotic relationship is real. The key to making it work is trust. Trust is built by clear and candid communications in defining and managing expectations. If expectations change, then sit down and redefine them together. By diligently working through these processes, an

unstoppable team will be built – a true ‘win-win’ for Boards, Managers and the ownership they serve.

Rolf Crocker, AMS, CCAM, CAMEx is a member of the ECHO Board of Directors.

He is CEO/Principal of OMNI Community Management, LLC and can be reached at rolf.crocker@omnicommunities.com.

May/June 2018 | ECHO Journal

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Join Us for an ECHO Event ECHO offers a variety of events addressing HOA relevant issues. Our panels are informal meetings with ECHO members and industry professionals who share experiences and find ways to improve life for California associations. ECHO Educational Seminars are day-long events featuring local HOA experts and professional instruction for board members. Check out upcoming events on ECHO’s event webpage or read more about past ones on our blog.

Santa Cruz Seminar There was so much to learn in Santa Cruz! In this session we kicked off with Diane Rossi, President and Founder of Shoreline Property Management. We learned basics of parliamentary procedure, who sets the agenda, tackling contentious topics, and shortening professional board meetings. Diane gave tips and tricks on how to streamline and improve your meetings and de-stress your HOA life. Brian Seifert then reviewed the new deck inspection and repair requirements that are almost certain to become law in 2019. Brian walked through the new systems boards will need to implement to improve inspection routines and proactively seek out and identify problems. Finally, Sharon Pratt and Rosalia Tapia discussed new laws in 2018 and their implications on HOAs. Thank you to the 90+ attendees who came out, asked questions, and made this event a blast! “This meeting gave me confidence that there are knowledgeable people available to answer questions and that ECHO is a great resource.” - Anonymous

Wine County Panel We're a fun group of HOA board members and professionals in the Wine Country region. We meet bi-monthly to discuss common problems and to improve communication between local HOA boards, professionals, and ECHO. At this past panel, we analyzed reserve studies and how they guide your most

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important financial decisions. Having years of experience in both reserve analysis and management, Tom O’Neill gave a presentation on understanding your reserve study and led the discussion on making sound choices on problems with longterm consequences.

Wine Country Seminar This year’s Wine Country seminar addressed …. Carra Clampitt, recipient of ECHO's 2016 Volunteer of the Year Award and VP of Eugene Burger’s Northern California region, started off with how create a process to find and attract talented board members. While Susan Hoffman, CEO of Professional Association Services, Inc. and OAS Management, gave attendees a few personality and process tips on how to reduce the tension and manage certain conflicts that can radiate throughout their HOA communities. Attorneys Amy Tinetti and John Gill of Hughes Gill Cochrane Tinetti then broke down the worrisome new laws in 2018 that allow owners and tenants to use common area for political gatherings, and a solar bill that gives owners the right to use common area roofs. “[The] speakers were all pretty dynamic!” - Anonymous

Join us! See page 37 for event information.

Contact events@echo-ca.org with any questions.

John Garvic, Esq.

ECHO Journal

35

ECHO honor roll

ECHO HONORS VOLUNTEERS Resource Panel Chairs

Seminar Speakers

Recent Contributing Authors

Accountant Panel Adam Haney, CPA 888-786-6000 x317

Annual Seminar Jeffrey Barnett, Esq. Tyler Berding, JD, PhD. Tyler Cffin Alan Crandall Rolf Crocker, CCAM Derek Eckert, RS John Garvic, Esq. John Gill, Esq. Sandra Gottlieb, Esq. David Levy, CPA Alex Noland, Esq. Deon Stein, Esq. Amy Tinetti, Esq. Wendy Weber Krishna Yalamanchi

March/April 2017 Steven Saarman, Jeff Saarman, and David Saarman Dave Heiligenthal Erin Kelly Pat Crosscombe

Central Coast Panel John Allanson 831-685-0101 East Bay Panel Ann Marquis-Fisher amarquisfisher@yahoo.com Legal Panel Mark Wleklinski, Esq. 925-280-1191 Maintenance Panel Cassidy Rajkovich cassidy@brookcm.com North Bay Panel Stephanie Charles & Diane Kay (415) 458-3537 South Bay Panel Tyler Coffin 408-297-3246 x4 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.

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East Bay Charlotte Allen Susana Cendejas, Esq. Andrea O’Toole, Esq. Monterey Sandra Bonato, Esq. Melissa Ward, Esq. Wendy Weber San Rafael David Feingold, Esq. Wanden Treanor, Esq. Glenn Youngling, Esq. Santa Cruz Sharon Pratt, Esq. Diane Rossi, PCAM, CCAM Brian Seifert Jennifer Stearns, CCAM Rosalia Tapia, Esq. Wine Country Carra Clampitt, CCAM Susan Hoffman, PCAM Amy Tinetti, Esq.

May/June 2017 Brian Seifert Robert M. Nordlund, PE, RS Colletta Ellsworth-Wicker, PCAM Tim Bosveld Richard Tippett July/August 2017 David Kuivanen, AIA Pat Crosscombe Sandra M. Bonato, Esq. Steven S. Weil, Esq. Steven T. O’Brien September/October 2017 David C. Swedelson, Esq. Bob Gourley Berding & Weil LLP Cagwin & Dorward Julie Adamen November/December 2017 Debra Warren Joelyn Carr-Fingerle Wendy Weber Sandra L. Gottlieb, Esq., CCAL January/February 2018 Robert DeNichilo, Esq. John P. Gill, Esq. Oliver Diaz Rolf Crocker March/April 2018 Jennifer M. Jacobsen, Esq. Paul W. Windust, Esq. Andrea L. O’Toole, Esq. Derek Eckert John P. Gill, Esq.

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

LOCATION

INQUIRIES

TOPIC

May 3, 11:45 a.m.

North Bay Resource Panel TBD

Denise Wolford, CCAM 415-458-3537

Fire & Earthquake Preparedness

May 8, 12:00 p.m.

Central Coast Resource Panel The Back Nine Grill, 555 Hwy 17 (Pasatiempo Exit), Santa Cruz

Tyler Coffin tcoffin@echo-ca.org

TBD

May 17, 11:45 a.m.

Wine Country Resource Panel Rohnert Park Community Center Meeting Room #2 5401 Snyder Ln., Rohnert Park

Pam Marsh 415-686-9342

TBD

June 8, 11:30 am

East Bay Resource Panel Massimo Restaurant 1604 Locust St., Walnut Creek

Ann Marquis-Fisher amarquisfisher@yahoo.com

TBD

July 10, 12:00pm

Central Coast Resource Panel The Back Nine Grill, 555 Hwy 17 (Pasatiempo Exit), Santa Cruz

Tyler Coffin tcoffin@echo-ca.org

TBD

July 11, 11:45 a.m.

North Bay Resource Panel TBD

Denise Wolford, CCAM 415-458-3537

Leadership

July 19, 11:45 a.m.

Wine Country Resource Panel Rohnert Park Community Center Meeting Room #2 5401 Snyder Ln., Rohnert Park

Pam Marsh 415-686-9342

TBD

Sign up online: echo-ca.org/events

REGULARLY SCHEDULED RESOURCE PANEL MEETINGS PANEL

MEETING

LOCATION

Maintenance

First Wednesday, Even Months

ECHO Office, San Jose

North Bay

First Thursday, Odd Months

TBD

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

The Back Nine Grill, Santa Cruz

South Bay

Second Wednesday, Even Months

TBD

Wine Country

Third Thursday, Odd months

Rohnert Park Community Center

Legal

Quarterly

Varies May/June 2018 | ECHO Journal

37

BOOKSTORE The ECHO Bookstore is your source for great information on the duties of HOA Board Members.

Order online or fill out the form on the facing page.

Robert’s Rules of Order Member Price: $7.50 Non-Member Price: $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.

2018

2018 Condominium Greenbook Member Price: Non-Member Price:

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.

Board Member Handbook Member Price: Non-Member Price:

Non-Member Price: $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.

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$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.

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.

Home and Condo Defects Member Price: $12.95

$17.00 $25.00

2018

Condominium Bluebook 2018 Edition 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 frequentlyasked questions about associations, along with succinct answers.

2018 Digital Downloads Free for ECHO Members

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

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

QUANTITY AMOUNT

2018 Statute Book Board Member Handbook Owner Information Form SUBTOTAL

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and Reservation Form HOA Investment Policy

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Log in to download from our online store. Don’t have an account? Email us: account@echo-ca.org

Signature

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May/June 2018 | ECHO Journal

39

new professional members

Welcome to our

NEW PROFESSIONAL MEMBERS

All Star Painting & Maintenance All Star Painting & Maintenance, Inc. is the company you can count on for your painting, maintenance and wood rot repair projects. We have a large crew of 10 project managers and 20 plus team members that will be able to manage your painting, maintenance and wood rot repair needs in a timely, efficient, and professional manner. Our company is fully licensed (#780250), bonded, and insured. We look forward to helping you develop your project timeline and to providing a competitive, professional bid for all of your HOA painting and wood rot repair needs.

East West Services EastWest Building Services has been serving the Bay Area since 1989. Providing Gutter Cleaning, Window Cleaning and Pressure Washing services to homeowners, we are fully licensed and insured and familiar with the various needs of HOAs. Contact Name: Rob Buffington • Tel: 408-287-5577 Email: info@eastwestservices.com Website: http://www.eastwestservices.com

Contact: Brian Bellem, CEO • Tel: 831-277-7497 Email: allstarpainting5@gmail.com

PMI San Francisco

Motus Earthquake Insurance

PMI San Francisco is a locally managed full service real estate firm specializing in HOA/TIC management for small (4 units) to midsize (50 units) communities while implementing proven, yet flexible, systems that can resolve all associations concerns.

We are affiliated with the nationwide Property Management Inc. (PMI) franchise that creates value for property owners through superior quality, professionalism, intelligence, technology, and integrity. Our services are highly customized to only serve the particular needs of the community while saving money for tasks that are not necessary. To learn more about how we can enhance the value of your community, contact us.

Motus Earthquake Insurance Services is a wholesale insurance broker focused on meeting the needs of California HOAs and individual condo owners (including townhomes, TICs, Co-ops, etc.). Through the Motus Earthquake Insurance Program, individual unit owners can “opt in” to the superior coverage of a master earthquake insurance policy – without requiring all HOA members to participate in and pay for such a policy. We offer our program through select HOA-focused insurance brokers. For more information, reach out to your broker or contact us directly. (Approved by the California Department of Insurance; Backed by an insurance company rated “A” by A.M. Best.)

Contact: Jean-Pierre Maeder • Tel: (415) 202-6976 Email: jp.maeder@pmisanfrancisco.com Web: www.pmisanfrancisco.com

Contact: Daniel Wallis III, CPCU, CLCS • Tel: (212) 851-8433 Email: dwallis@motusins.com Website: https://www.motusins.com

Find all of ECHO’s Professional Members Online.

Visit our Professionals Directory at www.echo-ca.org.

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advertiser index

about ECHO

WHAT IS ECHO? Ace Property Management..................28 www.acepm.net

Heritage Bank of Commerce. .............21 www.HeritageBankofCommerce.com

Affirmative Management Services ....32 www.affirmativemanagement services.com

IQV Construction & Roofing................33 www.iqvinc.com

Applied Reserve Analysis....................29 www.appliedreserveanalysis.com Barcode Automation, inc. ...................15 www.Barcode-Automation.com Benjamin Moore Paint & Company...........................................28 www.benjaminmoore.com Berding Weil..........................Back Cover www.berding-weil.com Common Interest .................................23 www.commoninterest.com Cornerstone Community Management.........................................14 www.cornerstonemgt.biz

Levy, Erlanger & Company..................22 www.hoa-cpa.com Marlarkey Roofing Products...............25 www.malarkeyroofing.com R.E. Broocker Co...................................29 www.rebroockerco.com Rebello’s Towing....... Inside Front Cover www.rebellos.net Satellite Painting, Inc. .........................13 maurizio@satpainting.com Statcomm, Inc. .....................................33 www.statcomm.com White and MacDonald.........................33 http://wm-llp.com

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 bi-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 bi-monthly magazine • Members-only online education • Updates to the Association Statute Book • Frequent educational seminars • Special prices for CID publications

ECHO Membership Dues 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............................$15

How Do You Join ECHO?

Office 1960 The Alameda, Suite 195 San Jose, CA 95126-2308

Over 1,400 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.

August2018 2013 | || ECHO ECHOJournal Journal May/June February 2014 ECHO Journal

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legislation at a glimpse

Catch Up On The Legislative Session!

The list below features important legislation for California associations. This list, and the impact of each bill, will change as authors amend the language in their bills. The final day for the Governor to sign or veto bills for the 2017-2018 Legislative Session is September 30th.

For the most up-to-date information, visit the HOA Advocacy section at the ECHO website: www.echo-ca.org/hoa-advocacy

Current Legislation Bill Information

Summary

AB 1760

Emergency Vehicle Parking

Watch Status: In Assembly Judiciary

Makes a prohibition or restriction in the governing documents of a common interest development relating to parking, including, but not limited to, onstreet parking, void and unenforceable with respect to an emergency vehicle owned or under the control of a member.

AB 1917

Extension of Declaration

Watch

Allows for extensions to the terms of the declaration, as specified. Prohibits extension of the terms of the declaration from exceeding the initial term of the declaration or 25 years, whichever is less.

Author: Frazier

Author: Steinorth Status: In Assembly Judiciary

AB 1943

Manufactured Housing Title Ownership

Watch

Specifies that written evidence that the manufactured home, mobilehome, or commercial modular owner owns a separate interest in a common interest development would be deemed to comply with the requirement that the owner owns or holds title to the property where the home is to be installed.

Author: Waldron Status: In Assembly Housing

AB 2141

Annual Statement Deadlines

Watch

Changes the time requirements for the distribution of the annual policy statement to members of a common interest development to be within 31 to 91 days before the end of the fiscal year.

Author: Cunningham Status: Introduced

AB 2912

Fidelity Coverage and Electronic Transfers

Watch

Requires an association of a common interest development to maintain fidelity bond coverage, prohibits electronic transfers of funds belonging to the association in and out of the account without prior approval from the board. Also prohibits any electronic transfer from the operating and reserve accounts of the association without prior board approval.

Author: Irwin Status: In Assembly Housing

AB 3041

Prohibition of Transfer Fees

Watch Status: In Assembly Judiciary

Prohibits the creation of a transfer fee, except as otherwise provided with respect to real property as a fee payment requirement imposed in any covenant, restriction, or condition contained in any deed, contract, security instrument, or other document affecting the transfer or sale of real property.

AB 3156

Electric Vehicle Charging Stations

Watch

Clarifies that equipment that meets the definition of "electric vehicle service equipment" is electric vehicle service equipment whether or not it is necessary to tether the equipment to a vehicle to permit the transfer of electric energy.

Author: Cunningham

Author: Mullin Status: In Assembly Transportation

42 echo-ca.org

legislation at a glimpse

Current Legislation (continued) Bill Information

Summary

SB 721

Deck & Balcony Inspection Requirement

Oppose Unless Amended Status: Passed Senate.

To Assembly.

Requires an inspection of building assemblies and associated waterproofing elements, including decks and balconies, for buildings with more than a certain number of multifamily dwelling units by a licensed architect, civil or structural engineer, or building inspector or official at certain intervals.

Requires certain corrective notifications. Imposes requirements on boards of directors of common interest development.

SB 1016

Electric Vehicle-Dedicated Meters

Watch

This bill would require the homeowner to agree to pay the costs associated with the installation of an electric vehicle charging station placed in a common area or an exclusive use common area.

It also provides that any governing document that effectively prohibits or restricts the installation or use of an electric charging station within an owner’s unit or of an EV-dedicated TOU meter, as defined, is void and unenforceable.

Author: Hill

Author: Allen Status: In Senate Appropriations

SB 1128

Consent to Email, Election by Acclamation

Watch

Authorizes the recipient of a document sent by a common interest development association to consent to the delivery and revoke that consent by email. Requires at least a certain number of days general notice by an association before making a rule change. Requires the director nominees of an association to be considered elected by acclamation in certain circumstances.

Author: Roth Status: In Senate Housing

SB 1173

Time Share Exemption from Notifications

Watch

Exempts from notice requirements under the Davis-Stirling Common Interest Development Act, interests regulated in the Vacation Ownership and Time-Share Act of 2004.

Author: Vidak Status: In Senate Judiciary

SB 1174

Time Share Exemption from Notifications

Watch

Exempts from notice requirements under the Davis-Stirling Common Interest Development Act, interests regulated in the Vacation Ownership and Time-Share Act of 2004.

Author: Stone Status: In Senate Judiciary

SB 1265

Election Qualifications and Procedures

Oppose Unless Amended

Deletes a requirement that the rules specify the qualifications for candidates for a common interest development board and any other elected position and the qualifications for voting. Establishes that a nominations procedure may not be deemed reasonable if it disallows a member from being nominated for any reason other than not being a member at the time of the nomination. Deletes exception that allows associations to use a paid third party as inspector of elections. Adds other requirements to election rules.

Author: Wieckowski Status: In Senate Housing

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