Quorum 02 2018

FEBRUARY 2018

Coachella Valley Community Associations Institute Magazine

9 CAI-CV's New Home

FEATURING

Professionalism/Ethics/Respect 13 The Issue of Ethics in the Community Association World 18 Is an Association Liable for Unethical Behavior?

22 Business Partner Ethics 24 Ethics in Reconstruction

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CONTENTS

2018 QUORUM COMMITTEE MEMBERS CAI-CV

EDUCATED BUSINESS PARTNER

SUSAN BROWNE ROSENBERG, CHAIR Desert Cities Indoor Air, LLC PHYLLIS HARKINS, CO-CHAIR CMCA, AMS, CCAM-LS, CAMEX GM, Portola Country Club HOA

CAI-CV

EDUCATED BUSINESS PARTNER

CAI-CV

EDUCATED BUSINESS PARTNER

DEA FRANCK, ESQ., BOARD LIAISON Epsten Grinnell and Howell, APC RODNEY BISSELL Bissell Design Studios, Inc. SIERRA FASANO, CMCA Trilogy La Quinta

9

CAI-CV

EDUCATED BUSINESS PARTNER

JENNIFER JAMES, ESQ. Law Office of Jennifer James BRUCE LATTA Parc La Quinta

CAI-CV

EDUCATED BUSINESS PARTNER

JAY POWELL Ben’s Asphalt JIM SCHMID The Lakes Country Club DAVID SCHUKNECHT, CMCA Personalized Property Management STEVEN SHUEY, PCAM Personalized Property Management Co.

13

18

CAI-CV

EDUCATED BUSINESS PARTNER

DAN STITES CBCI Construction, Inc. KAREN JOY TABBAH Palm Springs Regional Association of Realtors MICHAEL TURNER Urban Habitat Environmental Landscapes CREATIVE DIRECTOR & GRAPHIC DESIGNER

CAI-CV

EDUCATED BUSINESS PARTNER

22

FEATURES 9

CAI-CV's New Home

By Cal Lockett, CMCA

13

The Issue of Ethics in the Community Association World

By Steven Shuey, PCAM

18

Is an Association Liable for Unethical Behavior?

By Jennifer James, Esq.

22 Business Partner Ethics

4

By Susan Browne Rosenberg, CIH, CHMM, CIEC, Phyllis Harkins, AMS, CMCA and Jay Powell, EBP Quorum February, 2018

RODNEY BISSELL Bissell Design Studios, Inc. rodney@bisselldesign.com (714) 293-3749

ARTICLE SUBMISSIONS OR ADVERTISING INFORMATION admin@cai-cv.org

SUBSCRIBER SERVICES

The Coachella Valley Quorum Magazine is a publication expressly prepared for association leaders, managers and related business professionals of the Community Associations Institute. Members are encouraged to submit articles for publishing consideration. All articles accepted for publication in Quorum are subject to editing and rewriting by the Quorum Committee.

Quorum Magazine is printed at the CAI-CV Office on a Xerox Versant 180 Press.

Discounted printing is now available to CAI members. Call Bissell Design Studios, Inc. at (714) 293-3749 or the CAI-CV office for more information, 760-345-0559.

ADVERTISERS ACCOUNTANTS & BOOKKEEPERS BRABO & CARLSEN, LLP................................. 44

ASPHALT AMS PAVING...................................................... 2 ASPHALT MD'S................................................ 39 DIVERSIFIED ASPHALT PRODUCTS................. 43 NPG ASPHALT.................................................. 11

ATTORNEYS FIORE RACOBS & POWERS, A PLC.................. 37 GREEN BRYANT & FRENCH, LLP...................... 39 GURALNICK GILLILAND & KNIGHTEN.............. 27 JENNIFER JAMES LAW...................................... 7 PETERS & FREEDMAN, LLP............................. 41

BANKING POPULAR ASSOCIATION BANKING.................. 37

20

BARBECUE CLEANING DESERT BBQ CLEANING.................................. 35

FLOOD REPAIR

CHAPTER NEWS

FLOOD RESPONSE........................................... 23

6 39 39 41

DESIGN

CAI-CV New & Renewing Members CLAC Buck-A-Door Campaign December CMCA Certification Recipients CAI-CV Educated Business Partners

BISSELL DESIGN STUDIOS, INC....................... 42

GATES & GARAGE DOORS AUTOMATION PRIDE........................................ 27

INSURANCE BROKERS CLINE AGENCY INSURANCE BROKERS............ 35

CHAPTER EVENTS

LANDSCAPING

20 From Discontent to Community Spirit

CONSERVE LANDCARE.................................... 41 PRO LANDSCAPING......................................... 23 RGA LANDSCAPE ARCHITECTS, INC................ 12 SUNSHINE LANDSCAPE................................... 35 WATERRITE - VINTAGE ASSOCIATES, INC......... 7

Educational Lunch Program and Mini Trade Show January 19, 2018

28 Putting on the Glitz

CAI-CV 2017 Awards & Monte Carlo Night January 26, 2018

44 Upcoming Chapter Events

MANAGEMENT COMPANIES

DEPARTMENTS

PEST CONTROL

7

Manager's Corner

By David Schuknech, CMCA

8 President’s Message Maintenance 24 Ethics in Reconstruction

ASSOCIA DESERT RESORT MANAGEMENT..... 41

NPG Asphalt

ROOFING

36 Water Wise

Watchful Water Use

By Ashley Metzger

By Dan Stites

38 About CLAC

40

Preserving Your Asphalt 5 Tips for Getting your HOA Community Ready for Winter

By Teri Braden

FRAZIER PEST CONTROL................................... 6 POWERFUL PEST MANAGEMENT.................... 35

34 Platinum Spotlight

California Legislative Action Committee (CLAC) Update

By Steven Shuey, PCAM

CAI-CV.org

ROOF ASSET MANAGEMENT........................... 41 BRS ROOFING.................................................... 7 SUNTECH CONSULTING & ROOFING, INC......... 44 WESTERN PACIFIC ROOFING........................... 35

SECURITY AMS SECURITY.......................................... 11, 42 BAI® BARCODE AUTOMATION, INC.................. 17 SECURITAS........................................................ 3

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twitter.com/CAI_CV

5

FROM THE CHAPTER

CAI-CV New & Renewing Members NEW BUSINESS PARTNER PURE COMMUNITY Jeff Maclean (760) 835-0440 jmaclean@gopuredms.com

THE INSPECTORS OF ELECTION, LLC Marc Poland (800) 350-8333 marc@theinspectorsofelection.com

RENEWING BUSINESS PARTNER FRAZIER PEST CONTROL, INC. Julie Frazier (760) 328-6115 julie@frazierpestcontrol.com RENEWING MULTI-CHAPTER BUSINESS PARTNERS ARTISTIC MAINTENANCE, INC. Marlene Arredondo (949) 581-9817 marredondo@artisticmaintenance.com BARCODE AUTOMATION, INC. Ryan Waxberg (407) 327-2177 ryan@barcode-automation.com LLOYD PEST CONTROL Howard Jacobs (619) 668-1958 howard.jacobs@lloydpest.com MCDONNELL ROOFING, INC. Lauri Williams (714) 844-2814 lauri@mcdonnellroofing.com METERNET Moquey Marquross (800) 985-1179 m.marquross@meternetusa.com SILLDORF LAW, LLP Heidi Mares (800) 811-5874 hmares@silldorflaw.com

R

ONT NO C

U.S. SECURITY ASSOCIATES Kimberly Burnett (760) 837-2000 kburnett@ussecurityassociates.com NEW MANAGER MEMBERSHIP CATHEDRAL SPRINGS HOMEOWNERS ASSOCIATION Shane Petrik (760) 321-2731 shanep99@gmail.com RENEWING MANAGER MEMBERSHIPS CINDY CALQUHOUN (760) 346-6123 cindy@shadowmountainresort.com ALVIN HIPPE (760) 345-2637 al.hippe@tradingplaces.com ALBERT MANAGEMENT INC. Fabiana Spinelli (760) 774-4499 fabianaspinelli70@gmail.com BIGHORN HOMEOWNERS ASSOCIATION, INC. Judith Mandic (760) 610-8432 judym@bighorngold.com DESERT FALLS MASTER ASSOCIATION Martha Fogg (760) 341-6016 mfogg@dfmaster.com ELDORADO COUNTRY CLUB Pamela Jaymes (760) 423-1503 Pamela@eldoradocc.org

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AL • HOA'S COMMERCIAL • RESIDENTI

760-328-6115

Family Owned & Locally Operated 68920 Adelina Rd, Cathedral City, CA 92234 FrazierPestControl.com • Lic. # PR5204

ANTS • ROACHES • TERMITES • RODENTS • SPIDERS • BEES/WASPS • PIGEON PROOFING 6

Quorum February, 2018

GEN WANGLER. ESQ., CCAL PRESIDENT Fiore, Racobs and Powers A PLC

OUTDOOR RESORT PALM SPRINGS OWNERS ASSOCIATION Clinton Atherton (760) 328-3834 Ext. 244 catherton@orps.com PERSONALIZED PROPERTY MANAGEMENT CO. Patricia Moeller (760) 325-9500 pmoeller@ppminternet.com THE MADISON CLUB OWNERS ASSOCIATION Llubisela Rios (760) 399-0492 lrios@madisonclubowners.org

MIKE TRAIDMAN PRESIDENT ELECT Mira Vista at Mission Hills HOA PHYLLIS HARKINS, CMCA AMS, CCAM-LS, CAMEX PAST PRESIDENT GM, Portola Country Club HOA CAI-CV

EDUCATED BUSINESS PARTNER

LYDIA PFANNKUCHE (760) 851-5506 lydia.pfannkuche@managementtrust.com NEW MULTI-CHAPTER MEMBERSHIP FOR MANAGERS ASSOCIA-PCM Irene Mata (909) 790-2231 irene.mata@associa.us Antonia Vizcarra (909) 790-2231 antonia.vizcarra@associa.us RENEWING NATIONAL CORPORATE MEMBERSHIPS OWENS CORNING Mike Vaughn (419) 248-8000 mike.vaughn@owenscorning.com PPG PAINTS Stephanie Burnside (951) 225-5722 stephanie.burnside@ppg.com

RENEWING HOMEOWNER LEADERS SUN CITY SHADOW HILLS Joan Dzuro Kim Fuller Erica Hedlund Agnes Kessler Carey Thompson

JOLEN ZEROSKI, CMCA TREASURER Union Bank

JOHN WALTERS-CLARK SECRETARY Associa Desert Resort Management CARDINAL AMBROSE, CMCA, AMS, CCAM, PCAM DIRECTOR Albert Management, Inc.

PORTOLA COUNTRY CLUB HOA Phyllis Harkins (760) 346-5481 phyllis.harkins@managementtrust.com

RESERVE ADVISORS, INC. Timothy Matthiesen (630) 788-6072 tim@reserveadvisors.com

#1

In Customer Service

2018 COACHELLA VALLEY CHAPTER BOARD OF DIRECTORS

RHONDA DREWS, CMCA, AMS, PCAM DIRECTOR Associa Desert Resort Management CAI-CV

DEA FRANCK, ESQ. DIRECTOR Epsten, Grinnell and Howell, APC

EDUCATED BUSINESS PARTNER

GERARD GONZALES DIRECTOR Albert Management, Inc.

CAI-CV

EDUCATED BUSINESS PARTNER

MATT LAWTON, CIC, CIRMS DIRECTOR Prendiville Insurance Agency

LOUISE STETTLER DIRECTOR Palm Valley Country Club HOA

CAI Coachella Valley Office 41-905 Boardwalk, Suite A-2 Palm Desert, CA 92211 Tel: (760) 341-0559 Fax: (760) 341-8443 Website: www.cai-cv.org CAL LOCKETT Executive Director clockett@cai-cv.org

The materials contained in this publication are designed to provide our members with timely and authoritative information; however, the CAI Coachella Valley Chapter is not engaging in the rendering of legal, accounting or other professional types of services.

The Coachella Valley Chapter has not verified and/or endorsed the contents of these articles or advertising. Readers should not act on the information contained herein without seeking more specific professional advice from legal, accounting or other experts as required.

MANAGER'S CORNER

We can help you meet your CVWD "Efficient" budget!

By David Schuknecht, CMCA

Managing ethics for other people is an impossible task but is often expected of community managers by their association board members. While managers with CAI designations must uphold a code of ethics to keep their designation, there is currently little ethical guidance for volunteer board members.

Having board members sign a code of ethics pledge is a great first step in assisting your board to understand their responsibilities as directors. Sharing your code of ethics, along with encouraging them to adopt a voluntary code of their own, is also an important risk management tool that may save your association thousands of dollars in the future.

The following topics are a great place to start in drafting a volunteer code of ethics for your associations: • Board Responsibilities - What does your board define as their responsibility to each other and to homeowners?

Fernando Fregoso (760) 772-3673

fernandof@thevintageco.com

• Professional Conduct - Have the board define how confidential information is to be dealt with, and perhaps the inclusion of the Golden Rule, "do unto others as you would have them do unto you.”

• Conflict Resolution – Define what constitutes a conflict of interest and the Board’s expectations when a conflict arises.

• Violation of the Code – What are the steps the Board can take to correct uncooperative Board members?

After the code has been drafted and agreed on, you can enjoy meetings that are courteous, understanding of differing views, and are focused on the common goal of achieving your communities potential.

Don't fret, CAI can help! In CAI’s pamphlet, Good to Great, available online at CAI-CV.ORG, you will find a model code of ethics for board members. Have your boards consider adopting CAI’s code or use it as a guide for a more community specific version. Try visiting https://goo.gl/ ZN5dAH and check it out yourself.

CA LIC. #907600 AZ LIC. #286198

www.brsroofing.com

Jennifer James Attorney HOA Legal Services since 2003 75100 Mediterranean Palm Desert, CA 92211

David Schuknecht, CMCA, is a community manager for Personalized Property Managment and has been a portfolio manager for the last several years. Mr. Schuknecht is a Coachella Valley native and is a graduate of the University of California, Santa Barbara.

Jennifer@JenniferJamesLaw.com www.JenniferJamesLaw.com (760) 834-8913

CAI-CV.org

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twitter.com/CAI_CV

7

FROM THE CHAPTER

President’s Message Gen Wangler, ESQ., CCAL Fiore, Racobs and Powers A PLC

This is certainly an exciting time to become president of the CAI-CV Chapter. As I write this, the Chapter is settling into its new offices at the University Commerce Center on Gerald Ford Drive in Palm Desert. Our CED, Cal Lockett, has done a magnificent job of pulling off the move, overseeing installation of all the improvements and organizing the office. Ashley Lisza deserves our thanks as well for her hard work and dedication. Thank you, Cal and Ashley!

A very special congratulation goes out to 18 Valley managers who took the Certified Manager of Community Associations (CMCA) preparatory class and passed the test administered by the Community Association Managers International Certification Board (CAMICB) at Palm Valley on December 1st. Please see page 39. Welcome to the ranks of CAI professionals. This is the first time CAMICB has offered the test in the Coachella Valley and we hope to make this an annual tradition. We also want to recognize three local managers who participated in the Professional Community Association Manager (PCAM) case study in Orange County in December and were awarded the PCAM designation. Congratulations to Cardinal Ambrose from Albert Management, and Bill Clifford and Rosie Galla from Associa Desert Resort Management.

Many thanks to our January 19 luncheon speaker, Rob Felix, CMCA, LSM, PCAM, RS, and owner of Consolidated Community Services, Inc. and The Felix Reserve Group.

Rob spoke about moving associations from discontent to community spirit. His insights will certainly help associations stay focused on the important aspects of community living. Watch for a follow-up article from Rob in the March issue of Quorum.

The CAI-CV 2017 Awards & Monte Carlo Night on January 26, 2018, at Agua Caliente Casino Resort, was a huge success. Please see the photos on pages 28 and 29. This is our first year combining Awards with Casino night and the committee and the management of Agua Caliente outdid themselves. Congratulations to all the award recipients (listed on page 30).

January was a busy month for CAI with CAI’s National Law Seminar at the La Quinta Resort from January 31st through February 3rd, and the filming of CAI National’s new Educated Business Partner course on January 30th.

And, we had a record turnout for our first Manager on the 8

Quorum February, 2018

Run (MOTR) program on February 2, 2018. Thank you to Flood Response for hosting us.

The scope and reach of CAI-CV continues to grow. In 2018, CAI-CV will host more than 60 educational and networking events. This is possible thanks to our sponsors and 16 committees and 150 volunteers who lead more than 200 meetings each year to manage all of the Chapter’s activities. They bring education to thousands of people in the Valley through events, programs and publications.

Thank you for your service to the common interest development (CID) community. If you have not served on a CAI-CV Committee, I encourage you to sign up. For a small investment of your time, you will build relationships with managers, board members and business partners.

It is the fastest and least expensive way to build business relationships and increase your career potential.

The office continues to add capabilities to accommodate the growing demand for education. In January, CAI-CV leased a full-service production printer from MRC Smart Solutions (Xerox) that is capable of printing Quorum Magazine in-house, along with other printed materials.

This is our first issue produced in-house. The savings will go to fund the new classroom. You are welcome to come by the new CAI-CV office any time for a quick tour. You will be impressed.

Our next Educational Lunch Program will be Friday, February 16, at Palm Valley. Jeralyn Brossfield, M.D., is our guest speaker. Dr. Brossfield is an OBGYN who has further specialized in helping people make healthy and stress reducing choices in their work and home environments. You will enjoy this timely program.

I want to end this month’s President's Message with a sincere thank you to Phyllis Harkins for her hard work and strong leadership throughout 2017. It was a challenging year, given the decisions that had to be made in selecting a new office for the Chapter and then overseeing preparations for the move. Thank you, Phyllis! She will be a hard act to follow, but I pledge to give it my best.

Gen Wangler, Esq. Gen Wangler, ESQ., CCAL Fiore, Racobs and Powers A PLC

FROM THE CHAPTER

CAI-CV's New Home

By Cal Lockett

A

fter 36 years located near the corner of Cook and Hovley, try and find a location that showed great promise of growth, CAI-CV has moved to the University Commerce Center particularly in areas near the new UCR and UCSB campuses.

(UCC). We are located a quarter-mile east of Cook on Gerald The University Commerce Center meets those requirements Ford Drive in Palm Desert. The new address is 75410 Gerald and will hopefully meet CAI-CV’s needs for many years to Ford Drive, Suite 102. We share a parking lot with The Rock come. Helping us find the right location was Commercial Church, Kelly Paper, AIS, and a few other businesses.

Real Estate Broker, Michael Lawton, of Michael Lawton Real As the Chapter’s lease was Estate. Michael’s services ending almost two years were “offered” to us by his "The new address is ago, the Board of Directors brother, CAI-CV Director, began looking for new space 75410 Gerald Ford Drive, Suite 102." Matt Lawton, CIC, CIRMS, that would accommodate from Prendiville Insurance a classroom. Given CAI-CV’s educational directive, it was Agency. Michael spent hours showing us properties and weeks unanimous that a classroom would cement the Chapter’s negotiating with prospective landlords. focus on education for the long term.

While most of the buildings in the Center are warehouse/ After looking in all nine Valley cities, the Board decided storefront combinations, our building is out in front of the to limit their search to the center of the Valley and later to other buildings, right along Gerald Ford Drive, and CAI-CV.org

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9

COVER FEATURE

offers Class A professional space. Our neighbors currently include NAI Capital upstairs, one of the largest commercial real estate and property management companies in California and part of the international company, NAI Global. Down the hall from us is the Palm Desert office of Michael Baker International, an engineering and consulting firm. Across the hall is GLC Enterprises, a Civil Engineering and Land Development company. There is still space available, so we can expect more new neighbors soon.

To help with the expenses of the move, CAI-CV reached out to its business partner members for assistance. Our

thanks go out to Vantage Point Construction who oversaw the buildout and donated more than $18,000 to the remodel.

Flood Response donated the drywall and painting services at a cost exceeding $10,000 and AMS Security donated an $11,000 state-of-the-art alarm system that allows the office to be accessed after hours for classes. MRC Technology Solutions (Xerox) also donated $11,000 in cash to be used to help with the AV costs for the new classroom. Vista Paint donated all the paint. And, Sherwin Williams also offered paint for the buildout. Thank you for your generosity!

CAI-CV’s office and classroom face Gerald Ford Drive with a wall of windows. The office is accessed by double doors just inside the lovely west side lobby. There is plenty of parking.

CAI-CV’s offices are open from 9:00 a.m. to 5:00 p.m. but most days, someone is there early in the morning and many nights past 6 p.m.

Plans for the new classroom are being discussed by the Board. In addition to holding nearly 30 annual CAI classes, there have been suggestions ranging from offering the space to associations for annual meetings and to local charities and businesses. Stay tuned for more information about scheduling the CAI classroom for your events and meetings.

In January, CAI-CV leased a Xerox Versant 180 Press, a full production printer that is capable of printing Quorum Magazine and all the Chapter’s marketing and educational materials. The new printer is expected to save CAI-CV more than $1,000 per month and will help pay for the new CAI-CV classroom. Our thanks go out to Josh Widenmann, and the team from MRC Smart Technology Solutions A Xerox Company, for their assistance and insights.

Discounted printing is now available to CAI members. Call Bissell Design Studios, Inc. at (714) 293-3749 or the CAI-CV office for more information, 760-345-0559.

10

Quorum February, 2018

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FEATURE

Model Code of Ethics for Community Association Board Members

The Issue of Ethics in the Community Association World

By Steven Shuey, PCAM, CCAM

H

omeowner associations and community associations are entities involving people in a relationship. That relationship needs to involve integrity, honesty, and trust. We can wrap that all up in the phrase "ethical behavior." Most of the different groups of people involved in the management of a community, from the board members, to the various service providers, are expected to follow a code of ethics (sometimes referred to as a code of conduct). Exactly where the code of ethics got started is likely a little different depending on which group is referenced.

By definition, ethical codes are often adopted, not to promote a particular moral theory, but rather because they are seen as pragmatic necessities for running an organization in a complex society in which moral concepts play an important part. They are distinct from moral codes that may apply to the culture, education, and religion of a whole society. Often, acts that violate ethical codes may also violate a law or regulation and can be punishable at law or by government agency remedies. Even

organizations and communities that may be considered criminal in nature may have ethical codes of conduct, official or unofficial. Examples could include hacker communities, bands of thieves, and street gangs. Codes seek to define and delineate the difference between bad conduct and behavior that is good practice. Sometimes ethical codes include sections that are meant to give firm rules, but some offer general guidance, and sometimes the words are merely something we aspire to. In sum, a code of ethics is an attempt to codify "good and bad behavior."

In community management, it didn't take long to discover that some folks have a different understanding of how business is done. Board members and service providers alike are there to serve the community. One thing rarely ever talked about forty years ago was whether someone serving the community should or could profit from his or her service.

Now, we should ask, is it ethical for volunteers to reap a financial benefit for their service? Are third party paid

CAI-CV.org

CAI developed the Model Code of Ethics for Community Association Board Members to encourage the thoughtful consideration of ethical standards for community leaders. The model code is not meant to address every potential ethical dilemma but is offered as a basic framework that can be modified and adopted by any common-interest community.

Board members should: 1. Strive at all times to serve the best interests of the association as a whole regardless of their personal interests.

2. Use sound judgment to make the best possible business decisions for the association, taking into consideration all available information, circumstances and resources.

3. Act within the boundaries of their authority as defined by law and the governing documents of the association.

4. Provide opportunities for residents to comment on decisions facing the association.

5. Perform their duties without bias for or against any individual or group of owners or non-owner residents.

6. Disclose personal or professional relationships with any company or individual who has or is seeking to have a business relationship with the association.

7. Conduct open, fair and well-publicized elections.

8. Always speak with one voice, supporting all duly adopted board decisions—even if the board member was in the minority regarding actions that may not have obtained unanimous consent.

Board members should not: 1. Reveal confidential information provided by contractors or share information with those bidding for association contracts unless specifically authorized by the board.

2. Make unauthorized promises to a contractor or bidder.

3. Advocate or support any action or activity that violates a law or regulatory requirement.

4. Use their positions or decision-making authority for personal gain or to seek advantage over another owner or non-owner resident.

5. Spend unauthorized association funds for their own personal use or benefit.

6. Accept any gifts—directly or indirectly—from owners, residents, contractors or suppliers.

7. Misrepresent known facts in any issue involving association business.

8. Divulge personal information about any association owner, resident or employee that was obtained in the performance of board duties.

9. Make personal attacks on colleagues, staff or residents.

10. Harass, threaten or attempt through any means to control or instill fear in any board member, owner, resident, employee or contractor.

11. Reveal to any owner, resident or other third party the discussions, decisions and comments made at any meeting of the board properly closed or held in executive session.

CAI provides learning opportunities for community managers, homeowner volunteer leaders, association residents and service providers. Visit www.caionline. org/education to learn more.

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13

Community Associations Institute Professional Manager Code of Ethics The Manager Shall: 1. Comply with current bylaws, standards and practices as may be established from time to time by CAI subject to all federal, state and local laws, ordinances, and regulations in effect where the Manager practices.

2. Participate in continuing professional education through CAI and other industry related organizations.

3. Act in the best interests of the client; refrain from making inaccurate or misleading representations or statements; not knowingly misrepresent facts to benefit the Manager.

4. Undertake only those engagements that they can reasonably expect to perform with professional competence.

5. Exercise due care and perform planning and supervision as specified in the written management agreement, job description or duly adopted Board policies.

6. Disclose all relationships in writing to the client regarding any actual, potential or perceived conflict of interest between the Manager and other vendors.

The Manager shall take all necessary steps to avoid any perception of favoritism or impropriety during the vendor selection process and negotiation of any contracts.

7. Provide written disclosure of any compensation, gratuity or other form of remuneration from individuals or companies who act or may act on behalf of the client.

8. Insure that homeowners receive timely notice as required by state statutes or legal documents and protect their right of appeal.

9. Disclose to the client the extent of fidelity or other contractually required insurance carried on behalf of the Manager and/or client and any subsequent changes in coverage, which occur during the Manager’s engagement if the amount is lower than the contract amount requires.

10. See that the funds held for the client by the Manager are in separate accounts, are not misappropriated, and are returned to the client at the end of the Manager’s engagement; Prepare and furnish to the client accurate and timely financial reports in accordance with the terms of the management agreement, job description or duly adopted Board policies. www.caionline.org | CAI Professional Manager Code of Ethics | Page 2 11. Recognize the original records, files and books held by the Manager are the property of the client to be returned to the client at the end of the Manager’s engagement; maintain the duty of confidentiality to all current and former clients.

12. Refrain from criticizing competitors or their business practices; Act in the best interests of their Employers; Maintain a professional relationship with our peers and industry related professionals.

13. Conduct themselves in a professional manner at all times when acting in the scope of their employment.

14. Not engage in any form of price fixing, anti-trust, or anti-competition.

15. Not use the work products of colleagues or competing management firms that are considered proprietary without the expressed written permission of the author or the management firm.

Compliance with the Professional Manager Code of Ethics is further amplified in the Code Clarification Document provided by the Community Associations Institute.

14

Quorum February, 2018

FEATURE service providers entitled to a profit beyond actual cost? How about quality of service? Is there an expectation of how work is to be performed? Is there an expectation that a person will keep their word when committing to perform?

These are all questions about ethics.

In the early years it was boards of directors who were scrutinized, then as professional (paid) management came on the scene, they were scrutinized.

Finally, in different areas of specific service, like insurance professionals and reserve specialists, it was decided that there was a need for a standard of service which includes a code of ethics.

These codes of ethics have evolved as leaders found a need to normalize expectations. The most talked about is the Manager Code of Ethics. As the Community Association Institute evolved in educating managers, the Professional Management Development Program (PDMP) was developed and instituted. There was a need to recognize those managers who took courses and passed tests in their knowledge of

The first code of ethics came to our industry, if you will allow me to call it an "industry," in 1982, shortly after the first manager designation, PCAM was implemented. As situations came to light over the years regarding practices that were seen as inappropriate or unprofessional (unethical), codes were modified and improved. Today CAI has a code of ethics for designated managers and accredited management companies, one for designated insurance professionals, and one for designated Reserve Specialists. These can be seen in the side-bars around this article.

CAMICB (Community Association Manager International Certification Board) has a code of ethics for managers earning the CMCA designation.

Attorneys and CPAs have their professional code of conduct (ethics) within other organizations. CAI even has a model code of ethics for board members, but it is voluntary at present. I anticipate that one day, board member ethics will be a requirement, that is, in order to be placed in nomination to serve, nominees will be required to sign a code of conduct or "Today CAI has a code of ethics for code of ethics of designated managers and accredited some sort. Forward thinking commumanagement companies, one for nities are already designated insurance professionals, and implementing such a one for designated Reserve Specialists." standard. A sample board member code of ethics is available how to properly manage a community on the CAI-CV website and in CAI's from a professional perspective. Thus, publication, Good to Great. various designations were instituted. It For professionals, there are sanctions was quickly recognized that knowledge for failing to follow the code of ethics. of how to manage by itself, was not all This applies to designated managers, that was needed to set good managers reserve professionals, and insurance apart from those that were not so good. professionals. Those who have earned Therefore, an initial group of CAI desa designation are held to the ethical ignated managers got together in a form code implemented for the specific of self-regulation and designed a code of designation. There is a Designation ethics, requiring all those who receive Ethics Committee. The committee, the designation to agree to and follow whose membership is not publicized, the code in addition to having passed a is made up of a peer group of 15 to 25 test of knowledge.

FEATURE

members. Selected members serve a three-year term and report directly to the Board of Trustees. This committee investigates complaints against designated members. The committee is not out looking for violations, but rather, it receives and reviews complaints that have been submitted to determine if an actual violation exists. If it is found that a violation does exist, the committee recommends action to be taken.

Enforcement procedures were designed and implemented in 1995.

Like the code itself, the procedures are updated as situations come to light.

Within CAI, each AMS, LSM, PCAM, RS, or CIRMS professional member is personally responsible for his or her actions and any disciplinary actions arising from a complaint. Each Accredited Association Management Company (AAMC) member is responsible for the actions and omissions of its employees.

Complaints against members are submitted to CAI staff. Once a complaint is submitted, the chairman of the committee is notified and determines if the complaint fits within the committee's authority to review. For each matter that the Chairperson determines an inquiry is necessary, the Chairperson ensures that the Chief Executive Officer or his designee promptly provides written notice to the Subject Designee of the identity of the complaining party, the nature of the complaint specifying the provisions of the codes that are alleged to have been violated, the potential

Community Associations Institute Professional Reserve Specialist (RS) Code of Ethics

sanctions, and stating that the Subject Designee shall have the opportunity to respond to the Chairperson regarding the complaint within thirty (30) days of receipt of the notice. The Chairperson also shall ensure that the Complainant receives written notice that the complaint is being reviewed.

A review panel, made up of a portion of the Ethics Committee, reviews matters passed on to it. They make inquiries as needed and, if necessary, consult with CAI's legal counsel regarding the matter.

Within sixty (60) days from the receipt of the response from the Subject Designee, the Review Panel issues a written report to the Chairperson explaining the background and investigative steps of the inquiry. They also report the findings of the Review Panel with respect to particular sections of the codes considered to be violated and also indicate whether or not a hearing on the matter is warranted and the sanctions recommended, if any, along with the basis for the recommendations. The Subject Designee is notified of the outcome within 15 days of the Chairperson receiving the report from the Review Panel.

If the report indicates a hearing is needed and sanctions are recommended, the Subject Designee is invited to the hearing and has an opportunity to respond. The Hearing Panel, also made up of committee members, then meets in executive session to determine a final outcome. The matter is either dismissed or appropriate sanctions are imposed.

CAI-CV.org

The Reserve Specialist shall: 1. Comply with current standards and practices as may be established from time to time by CAI, subject to all federal, state and local laws, ordinances and regulations, if any, in effect where the RS designee practices.

2. Participate in continuing professional education through CAI and other industry related organizations as required.

3. Act in the best interests of the client; refrain from making inaccurate or misleading representations or statements; and not knowingly misrepresent facts to benefit the Specialist.

4. Undertake only those engagements that he/ she can reasonably expect to perform with professional competence.

5. Exercise due care and perform planning and supervision as specified in the written client engagement agreement.

6. Disclose all relationships in writing to the client regarding any actual, potential or perceived conflicts of interest between the Specialist and other parties, including, but not limited to, management companies, insurance carriers, contractors and legal counsel.

7. Provide written disclosure of any compensation, gratuity or other form of remuneration from individuals or companies who act or may act on behalf of the client.

8. Conduct himself or herself in accordance with the Reserve Specialist requirements.

9. Not represent to anyone as being a Reserve Specialist designee until such time as he or she receives written confirmation from the Reserve Specialist Designation Review Board or CAI of receipt of the designation; 10. Recognize that the original records, files, plats and surveys held by the Reserve Specialist are the property of the client and are to be returned to the client at the end of the Specialist’s engagement; maintain the duty of confidentiality to all current and former clients.

11. Refrain from criticizing competitors or their business practices; act in the best interests of his/her employers; maintain a professional relationship with peers and industry related professionals.

12. Conduct himself/herself in a professional manner at all times when acting in the scope of his/her employment.

13. Not engage in any form of price fixing, anti-trust, or anti-competition.

14. Not use the work products of colleagues or competing reserve study firms that are considered proprietary without the expressed written permission of the author or the reserve study firm.

15. Abide by the re-designation policy of CAI. Compliance with the Professional Reserve Specialist Code of Ethics is further amplified in the Code Clarification Document provided by Community Associations Institute.

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Community Associations Institute Community Insurance & Risk Management Specialist (CIRMS) Code of Ethics The Community Insurance & Risk Management Specialist shall: 1. Comply with current standards and practices as may be established from time to time by CAI, subject to all federal, state and local laws, ordinances, and regulations, if any, in effect where the CIRMS designee practices.

2. Participate in continuing professional education through CAI and other industry related organizations as required.

3. Act in the best interests of the client; refrain from making inaccurate or misleading representations or statements; not knowingly misrepresent facts to benefit the Specialist.

4. Undertake only those engagements that he/she can reasonably expect to perform with professional competence.

5. Exercise due care and perform planning and supervision as specified in the written client engagement agreement.

6. Disclose all relationships in writing to the client regarding any actual, potential or perceived conflict of interest between the Specialist and other parties, including, but not limited to, management companies, insurance carriers, developers, contractors and legal counsel.

7. Provide written disclosure of any compensation, gratuity or other form of remuneration from individuals or companies who act or may act on behalf of the client.

8. Conduct oneself in accordance with the Community Insurance & Risk Management Specialist requirements.

9. Not represent to anyone as being an Insurance & Risk Management Specialist designee until such time as he or she receives written confirmation from the Insurance & Risk Management Specialist Designation Review Board or CAI of receipt of the designation; 10. Recognize the original records and files held by the Community Insurance & Risk Management Specialist are the property of the client and are to be returned to the client at the end of the Specialist’s engagement; maintain the duty of confidentiality to all current and former clients/ employers.

11. Refrain from criticizing competitors or their business practices; act in the best interests of his/ her employers; maintain a professional relationship with peers and industry related professionals.

12. Conduct oneself in a professional manner at all times when acting in the scope of his/her employment.

13. Not engage in any form of price fixing, anti-trust or anti-competition.

14. Not use the work products of colleagues or competing insurance and risk management firms that are considered proprietary without the expressed written permission of the author or the insurance and risk management firm.

15. Abide by the re-designation policy of CAI. Compliance with the Community Insurance & Risk Management Specialist Code of Ethics is further amplified in the Code Clarification Document provided

by Community Associations Institute.

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Quorum February, 2018

FEATURE

"A specific form is available on CAI's national website for submitting alleged complaints against designated members."

There are five different sanctions that may be imposed. They are:

1. Successful Completion of a CAI Approved Course in Community Association Ethics

2. Private Letter of Admonishment 3. Public Censure 4. Public Censure with Suspension of CAI Membership and Credentials

5. Public Censure with Revocation of CAI Membership and Credentials As can be seen from the above, this is pretty serious stuff. Ethical standards must be upheld or the violator risks damaging his or her career in a very serious way. Yes, there is an appeal process where an appeal panel made up of members of the Board of Trustees gets involved.

After learning how the enforcement process works, I can assure you the Ethics Committee members take their appointment and task at hand very seriously. Every designated member should review and adhere to their code of ethics in every way.

Now, if you seriously suspect that someone has violated their code of ethics, there is a submission process.

A specific form is available on CAI's national website for submitting alleged complaints against designated members.

The allegations made will be taken seriously and could affect the career of the accused. Therefore, consider carefully the action you are about to take. It is important that the alleged violation not be confused with action required by the designee as a directive of the association's board of directors. If the allegation is criminal in nature (i.e., theft, embezzlement) appropriate authorities should be notified and information on

the submission or outcome should be included with the form.

Before filing a complaint, find out if the service provider holds a CAI designation and, if so, review the CAI Code of Ethics. Download and Complete the complaint form against the Designee and identify the specific codes you are alleging the Designee to have violated.

Compile a narrative summary and evidence to support your allegations. For the complaint to have merit, it must fit precisely into one or more of the ethical standards. Documentation should point clearly to the standard being violated.

It is important that proper supporting evidence accompany the complaint with clear and concise documentation identifying what makes it a piece of evidence.

Finally, submit the form along with all the documentation (evidence) in accordance with the instructions on the form.

For more information, consult the CAI website at www.caionline.org and search on: filing an ethics complaint. There you will find all the information you need including forms and instructions as well as detailed enforcement procedures and all the various codes of ethics.

Steven Shuey is a certified Professional Community Association Manager. He serves on the National Faculty of CAI and a past board member of the APCM. He also serves as a delegate on the California Legislative Action Committee (CLAC). He is a community association consultant with Personalized Property Management here in the Coachella Valley. In January 2017 he was awarded the lifetime achievement award from CAI-CV. He may be contacted at IslandMgr@aol.com.

You can follow him on Twitter (www.twitter.com/@IslandMgr)

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HOMEOWNERS ASSOCIATION LAW

Is an Association Liable for Unethical Behavior?

Unethical behavior by owners, board members, and others, i.e. association employees, vendors, independent contractors or personnel, can have a devastating impact on homeowner associations.

Jennifer James, Esq.

UNETHICAL BEHAVIOR BY OWNERS An association can be at risk when owners misbehave.

Potential issues arise when owners harass association employees and vendors. As an employer, the association can be liable for a hostile work environment or harassment which violates federal law if it involves discriminatory treatment based on race, color, gender, religion, national origin, sex, familial status, age, or disability. The association could be liable unless it proves that the association exercised reasonable care to prevent and promptly correct any harassment. As of October 14, 2016, boards are required to address members’ claims of

verbal attack does not foster a sense of peaceful community nor does it encourage harmony among neighbors. When community websites and owner emails are used for personal attacks and potential false allegations, the risk of defamation lawsuits increases. Defamation is a false statement that is expressly implied to be factual, published to a third party and causes injury to someone’s reputation. If the defamation directed at a director has a “tendency to affect the corporation disadvantageously in its business,” the association can sue the homeowner for defaming the director (see Palm Springs Tennis Club v. Rangle, 73 Cal.App.4th 1 (1999)). Given the negative impact litigation can have on a homeowners association, it is better to think twice before sending out that angry email.

To address owners unethical behaviors, directors should enforce the governing documents and seek discipline when appropriate. If inappropriate behavior is not addressed by the association’s existing governing documents, the board may want to amend its governing documents to include discipline for the offending behavior which could alleviate future ethics issues. At a minimum, boards should work with legal counsel to adopt an anti-harassment policy for the association.

UNETHICAL BEHAVIOR BY BOARD MEMBERS

harassment, including harassment by other residents, board members, managers, and vendors. The law requires that boards take prompt steps to investigate and end harassment (see Code of Fe. Reg. 100.7(a)(1)(iii)).

Other examples when the association could be at risk include owners who cause damage to the association’s common areas and facilities which can cost the association unexpected repair expenses and potentially result in a special assessment. Also, owners that continuously violate the association’s governing documents or become delinquent in association assessments can cost the association additional time and legal fees.

In addition to the above examples, the internet provides owners with an opportunity to voice concerns, and can become a feeding frenzy for angry owners. Sometimes owners may appear to complain for the sake of complaining. While complaints aren’t always frivolous and can be productive, sometimes complaints get out of control. An association under 18

Quorum February, 2018

Directors have a fiduciary duty to act in the best interest of the membership. As a fiduciary, directors have the duty of care, that is, directors must be diligent and careful in performing their duties. Directors also have the duty of loyalty, which means no self-dealing.

Directors who act with the duty of care and duty of loyalty are protected under the business judgment rule. Generally, courts will uphold a board’s decisions as long as the board acted in good faith to further the purpose of the association, consistent with the association’s governing documents, and in compliance with public policy. "[T]here is no monetary liability … and no cause of action for damages shall arise against, any volunteer director or volunteer executive officer … based upon any alleged failure to discharge the person's duties as a director or officer if the duties are performed in a manner that meets all of the following criteria: (1) the duties are performed in good faith; (2) the duties are performed in a manner such director or officer believes to be in the best interests of the [association]; and (3) the duties are performed

HOMEOWNERS ASSOCIATION LAW UNETHICAL BEHAVIOR BY OTHERS

with such care, including reasonable inquiry, as an ordinary prudent person in a like position would use under similar circumstances" (see Corp. Code §7231.5(a)).

Whether intentional or unintentional, sometimes board members violate the business judgment rule and engage in unethical behavior exposing the association to liability.

Unethical behavior includes, but is not limited to, failure to enforce the association’s governing documents, acting favorably or discriminatorily towards certain owners, breaching confidentiality, advancing self-serving interests, and embezzlement.

Some association governing documents authorize sanctions for improper behavior, e.g. removal from board for failing to attend three consecutive meetings or becoming delinquent in assessments. The board may use other forms of discipline.

For example, the board may remove directors from their officer positions or censure a director either privately or publically.

If a board suspects an association employee or vendor has acted unethically, I initially recommend addressing the concern in person. Often times, misunderstandings occur from a lack of communication. If talking through a concern does not resolve the issue, review the employment or vendor contract to determine what steps can be taken, e.g. withhold pay, termination, etc. In extreme cases, termination may be necessary. Keep in mind, however, that many employment and vendor contracts require notice and an opportunity to cure the problem before termination.

Attempting to first resolve the issues at hand with the current employee or vendor is always the best approach. Far too often, boards jump to terminate employees or vendors when they are unhappy without considering that those same issues could arise with the next entity. Be aware that as an employer, associations can be sued for wrongful termination.

Therefore, it is important to seek legal advice from an experienced professional knowledgeable about employment law.

"Unethical behavior includes, but is not limited to, failure to enforce the association’s governing documents, acting favorably or discriminatorily towards certain owners, breaching confidentiality, advancing self-serving interests, and embezzlement."

However, these forms of discipline may not alleviate all the potential problems, such as those issues created by a rogue board member with a private agenda that breaches confidentiality. Sometimes a letter or meeting with the association’s legal counsel may curtail the unwanted behavior, but if the concerns continue, the board may need to pursue a legal resolution to such issues.

The best way to avoid ethical issues and proactively address director ethics is to adopt an ethics policy setting forth board responsibilities, expected professional conduct and how to address conflicts efficiently and effectively. An association seeking to adopt an ethics policy should consult its legal counsel to ensure the ethics policy is tailored to your unique community.

Associations should be aware of the risks and liabilities involved with unethical behavior by owners, directors, or other persons involved with the association. Boards should take steps to educate their members and protect their associations.

By initiating awareness and implementing proper procedures, associations can avoid liability exposure.

Jennifer James, Esq. is an HOA attorney located in the City of Palm Desert and has been providing legal services to common interest communities for more than 14 years. She established her own law practice, Jennifer James Law, in 2014. Ms. James has been actively involved with CAI since 2004. She can be reached at (760) 834-8913 or Jennifer@JenniferJamesLaw.com.

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Quorum February, 2018

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FEATURE

Business Partner Ethics

By Susan Browne Rosenberg, CIH, CHMM, CIEC, Phyllis Harkins, CMCA, AMS and Jay Powell, EBP

E

thics, as defined by Merriam-Webster is “the discipline Developing a code of ethics for your company or association dealing with what is good and bad and with moral duty is a great way to build accountability and remind people of and obligation.” It is also “the principles of conduct govern- the standards everyone is expected to uphold. ing an individual or a group.” There are professional ethics, There are thousands of examples of codes of ethics to corporate ethics, human ethics, and religious ethics to name consider. Realtors, for example, have a code that includes just a few. Our parents taught us our first lessons about ethics a standard of not making false or misleading statements when we were told to share our toys. Then in school, we learned about other real estate professionals. If you do, you will lessons about good and bad behavior, including history lessons lose your license. Lawyers are governed by a code of ethics about past unethical behavior that usually enforced by the State Bar caused wars and devastation to Association, which handles ethics "Any company can say they’re entire populations. You might say violation complaints. that ethics is the glue that holds a Professional organizations the best, but don’t take their society together. Ethics provide often have codes of ethics that are word for it, listen to what ground-rules that that are critirequired to maintain membership cally important to all societies and or professional designations. For their clients have to say.” human groups. Perhaps the best example, CAI has a code of ethics way to convey the importance of for managers and Community ethics is to watch what happens when they are absent. Chaos. Insurance and Risk Management Specialists (CIRMS) and When asked to describe business ethics, Jay Powell from Reserve Specialists (RS).

Ben’s Asphalt said, “A professional and ethical company can Ethical practices usually include such things as full disclobe measured in many ways but the first thing to look at is what sure of any possible conflicts-of-interest. For example, gifts other people say about them. Any company can say they’re given to clients or potential clients can be viewed as a conflict. the best, but don’t take their word for it, listen to what their Phyllis Harkins, General Manager of Portola Country Club clients have to say.” commented, “As managers, we may have gifts offered to us,

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some as simple as a $5.00 Starbucks card, or as grandiose as a trip to Hawaii. Most managers know what is right and what is not. A $20 working lunch from a Business Partner, for example, might be acceptable. However, a $300 steakhouse dinner from a vendor courting your association for business, is probably not appropriate. Ethics should be simple. As Dan Kocal, one of the founders of The Management Trust, always said, “Ethics, either you have them or you don’t.” Most managers and vendors instinctively know what is right and what is not. However, defining limits in writing as part of your code makes things clear and unambiguous.

Phyllis additionally commented that, “An ethical Business Partner speaks professionally about everyone in the HOA industry, offers no remuneration of gifts until a very longtime relationship is established, meets deadlines, communicates, and has a passion for the HOA industry in always wanting to “do the right thing, every time.”

Susan Rosenberg from Desert Cities Indoor Air said, “CAI offers business partners many opportunities to build relationships with managers and board members at their events. Rather than offering a gift to a manager or board member that might make them feel uncomfortable, offer to buy their ticket to a CAI-CV Educational Lunch, or buy cocktails for them at a CAI networking event. No one will see this as inappropriate or a conflict, and the managers and board members will be grateful for your thoughtfulness.”

Jay mentioned, “CAI also offers the opportunity for business partners to pay for a manager’s education. You can help a manager develop their career. Can you imagine a better way to build a relationship?” Phyllis summed things up with, “CAI offers its members a safe and professional way to build ethical relationships. I know I am speaking for many mangers when I say that we sincerely appreciate business partners who understand and respect the ethics that CAI managers are required to uphold.”

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Susan Browne Rosenberg, CIH, CIEC, CHMM, and CAI EBP, is president and co-owner of Desert Cities Indoor Air, LLC in Palm Desert, CA. Her company assists HOAs in assessing the extent of water damage and mold contamination. She can be reached at 760-902-2545 or sbriaq@gmail.com.

Phyllis Harkins, CMCA, AMS, CCAM-LS, CAMEx, is the general manager of Portola Country Club HOA. She can be reached at 760.346.5481, or phyllis.harkins@managmenttrust.com.

Jay Powell is the Business Development Manager for Ben's Asphalt. He can be reached at 760-413-2466 or by email at jay.powell@bensasphalt.com.

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MAINTENANCE

Ethics in Reconstruction

By Dan Stites

"There is no right way to do the wrong thing!"

R

econstruction in the CID arena involves many parties – general contractors, subcontractors, material suppliers, community managers, HOA board members, homeowners, and the list goes on. Each and every one of these participants is frequently faced with decisions that involve balancing ethical behavior with self-interests during the course of a reconstruction project. And the opportunity to go astray is probably greater in the reconstruction process than in any other area.

But, how is a “ethical behavior” defined and where is the line drawn between ethical and unethical actions?

A contractor discovers something in his scope of work that does not have to be

done. Does he advise the board and provide a credit or remain silent and put extra cash in his pocket? He might argue for keeping the cash because he would have to absorb the cost if that work actually did have to be done and he underestimated the cost of completing it. But is it ethical to charge for a service that is not provided?

For their own personal reasons, a community manager (or a board member or a homeowner) desperately wants a particular contractor to be selected for an HOA project but his bid is too high and he is about to be eliminated by the board in favor of the low priced bidder.

Does the manager/board member/ homeowner quietly provide pricing

"They are only looking out for the well-being of the HOA."

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Quorum February, 2018

information to the contractor so he can lower his price or remain silent and allow nature to take her course? The manager/ board member/homeowner might rationalize that they have a close relationship with the contractor who has consistently done outstanding work or that the low bidder has a very spotty performance history. They are only looking out for the well-being of the HOA. But the board is making a decision with full knowledge of past performance and relationships.

What is the ethical thing to do?

A roofing contractor works hard to get a particular roofing material manufacturer’s product specified for an upcoming project. Since multiple bidders will be proposing the same product, does the manufacturer provide preferential pricing to the contractor that caused their material to be specified? The manufacturer might rationalize that they are just rewarding what they consider to be “good behavior” and the HOA may end up getting a better price because of it. But is the “favored” bidder the most qualified contractor for the project? And wouldn’t the Board want all bidders to get the same “favored bidder pricing?”

There are too many situations where the balance between self-interest and ethical behavior is not black and white but more “shades of gray.” And we are faced with weighing the facts and deciding to do the “right” thing based on rules, guidelines, laws and our own principles for good moral conduct. In CID Reconstruction, the best metric of ethical behavior is the degree of trustworthiness and integrity with which companies and individuals conduct business.

MAINTENANCE

"The best metric of ethical behavior is the degree of trustworthiness and integrity with which companies and individuals conduct business."

How do we make the right decision when everything is a different shade of gray?

The first thing to realize is that, no matter how tempting, there is never a right time to cut ethical corners for financial, personal, or business gains.

The legal, financial, and public relations risks far outweigh the benefits you might hope to realize.

Following are some thoughts on what we can do as individuals and companies to promote our own ethical behavior and that of parties we interact with:

1. Know your company’s values and let those values dictate every business decision you make. Not all entities, whether construction, community ma nagement, homeow ners’ associations, or otherwise, will have a Values Statement. But, if the entity you represent does, make sure you have a crystal clear understanding of those values and how they relate to your day-to-day decision making.

2. Know the law. This may sound obvious, but it's amazing how many individuals involved in the reconstruction process are not aware of the laws that apply to their area of responsibility. Without knowing the relevant business laws and how to ethically apply them, you are navigating blindfolded.

3. Remember that you are not alone – and you may not be in the best company. Your peers and all others you interact with on a reconstruction project are faced with the same “opportunities” to cut ethical or legal corners for personal or business gain. Some of those may cave in to the temptation and attempt to involve you. Just because another participant in the project tells you that something wrong is really okay, that doesn't make it so. If you are approached about an action that even feels shady–let alone one that you know to be CAI-CV.org

shady–run, don't walk, run away from that other person or company as fast as you can.

4. Scrutinize your thinking and, in particular, your rationalizations.

If you hear a voice in your head–or words from someone else–trying to make excuses for an action that doesn't seem right, pay attention; this is one of the earliest "red flags" that an ethical breach might be in the works. Of course, trying to rationalize something doesn't necessarily mean that the behavior is wrong. It's just the sign of a risk. Once you become aware of a potential legal or ethical problem, though, you can't ignore it. To do so simply leaves the door open for stepping over the ethical or legal line, however much you may say that doing so isn't your intention.

The road to Hell is paved with good intentions.

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MAINTENANCE

"If you are unsure, get help! Seek out knowledgeable peers and ask them."

5. Pay attention to your gut. If you

7. The reputation of our industry

feel like something may not be right, it probably isn't. Mind you, our guts can steer us wrong, but it's usually the other way around. In other words, we can often convince ourselves that something wrong is really okay (that's why we need to pay such close attention to rationalizations), but we rarely tell ourselves that something okay is actually wrong. If it feels like you're heading down the wrong path, pay close attention. If your gut is correct, it's never too soon to keep yourself from stepping over the line, nor is it ever too late to stop something inappropriate that you've been doing.

depends on every member of the industry. If you see another participant in a project doing something you believe to be wrong, you can't simply turn a blind eye. To do so simply isn't holding up your end of the bargain. Be blunt with the other party about your concerns.

Let them know the nature of your concern, and give them a chance to explain. After all, you may have misunderstood what they are doing or, in fact, you may actually be the one doing things incorrectly.

6. If you are unsure, get help! Seek out knowledgeable peers and ask them.

There's never a problem with being unsure about where the ethical or legal compass is pointing. However, there is a huge problem with being unsure and then doing nothing to find out.

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8. When all else fails, use the Warren Buffet test. Loosely paraphrased, if you are unsure about the ethics of a decision you are making, imagine that it will be detailed on the front page of the Desert Sun tomorrow or, far worse, on the cover of next month’s Quorum Magazine!!

The odd thing about ethics is that everyone seems to agree that ethics are critically important but believe that it's

everyone else who needs to pay closer attention to them. Most businesses believe that they somehow could not possibly have a problem and that it's always some other person or some other company doing things wrong. Obviously, though, it can't always be someone else.

The fact is that these temptations to cross the ethics line for personal or business gain will always be with us. The key is to make sure that our moral and ethical compass is properly calibrated.

The above steps will help us stay on the right side of the line regardless of the type of temptation we face. And, remember, it can’t always be the other guy!

Dan Stites is a degreed and licensed Professional Engineer with over 35 years of experience in the construction industry. He also holds C-39 Roofing and Waterproofing and “B” General Building Contractor licenses and has completed graduate studies in business at Rice University and Thunderbird School of Global Management.

CAI-CLAC 2018

LEGISLATIVE DAY AT THE CAPITOL SAVE THE DATE

Sunday, April 8, through Monday, April 9, 2018 Hyatt Regency Sacramento Join movers and shakers from all over California as CAI-CLAC goes straight to the lawmakers in Sacramento to make our voices heard.

Participate in education sessions for all levels of legislative experience, while the CAI-CLAC Delegates and Liaisons have their “position” meeting and get to know the CLAC Committee members at the Meet the Delegates event.

SIGNUP ONLINE AT WWW.CAICLAC.COM 888.909.7403

fax 916.550.9488

GURALNICK GILLILAND & KNIGHTEN _________________________________________________________________________________________________

• Corporate Counsel •

• Legal Opinions

• Assessment Lien and Foreclosure

• • Fees Paid by Delinquent Homeowner • Detailed Monthly Status Reports

40004 Cook St. Suite 3 Palm Desert, Ca www.gghoalaw.com Phone: (760) 340-1515 Fax: (760) 568-3053 For a Copy of our Legal Update Contact Melissap@gghoalaw.com CAI-CV.org

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27

CHAPTER EVENTS

CAI-CV 2017 AWARDS & MONTE CARLO NIGHT

Friday, January 26, 2018, 5:30 p.m.

Agua Caliente Spa Resort Casino

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Quorum February, 2018

CHAPTER EVENTS

THANK YOU TO OUR SPONSORS PLATINUM SPONSORS

Allied Universal Associa Desert Resort Management MRC Smart Technology Solutions A Xerox Company NPG Asphalt Sunshine Landscape

DOUBLE CHAMPAGNE SPONSOR Roof Asset Management

WINE RECEPTION SPONSORS Frazier Pest Control PrimeCo Western Pacific Roofing

CIGAR SPONSOR

Vantage Point Construction

GOLD SPONSOR

Fiore Racobs & Powers, A PLC

SILVER SPONSORS

Alliance Association Bank Asphalt MD’s CBCI Construction

BRONZE SPONSOR BRS Roofing

PHOTOGRAPHY SPONSORS Dunn-Edwards Corp Flood Response

SPECIAL EVENT DESIGN SPONSOR G4S Secure Solutions Bissell Design Studios Inc.

GRAND JACKPOT SPONSOR United Paving

VALET SPONSOR

Epsten Grinnell & Howell, APC

ENTERTAINMENT SPONSOR LaBarre/Oksnee Insurance Agency

FOOD SPONSORS EmpireWorks Seacoast Commerce Bank Shetler Security

VENUE SPONSOR Agua Caliente Casino Resort Spa

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29

CHAPTER EVENTS

2017 CHAPTER AWARDS LIFETIME ACHIEVEMENT AWARD Tad Black, Associa OnCall

DISTINGUISHED SERVICE AWARD Dea C. Franck, Esq., Epsten Grinnell & Howell, APC

COMMUNITY ASSOCIATION ONSITE MANAGER OF THE YEAR AWARD Clint Atherton, PCAM, Outdoor Resorts Palm Springs

COMMUNITY ASSOCIATION PORTFOLIO MANAGER OF THE YEAR AWARD John Walters-Clark, Associa Desert Resort Management Cardinal Ambrose, PCAM, CCAM, CMCA, AMS, Albert Management

COMMUNITY ASSOCIATION OF THE YEAR AWARD Monterey Country Club Association

COMMUNITY ASSOCIATION VOLUNTEER LEADER OF THE YEAR AWARD Louise Stettler, Palm Valley Country Club HOA

BUSINESS PARTNER OF THE YEAR AWARD Frazier Pest Control, Inc.

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Quorum February, 2018

CHAPTER EVENTS

SPECIAL EVENTS COMMITTEE OF THE YEAR AWARD WINE TASTING COMMITTEE FOR CORKS FOR CLAC Louise Stettler, Chair, Palm Valley Country Club HOA Lori Fahnestock, Co-Chair, Powerful Pest Control

OPERATIONS COMMITTEE OF THE YEAR AWARD

Sue Anderson, Adams Stirling, PLC

MEMBERSHIP COMMITTEE

Clint Atherton, PCAM, Outdoor Resorts Palm Springs

Jolen Zeroski, CMCA, Chair, Union Bank HOA Services

Sharron Badham, CCAM, PCAM, The Hideaway

Rick Cech, Co-Chair, Western Pacific Roofing

Rick Cech, Western Pacific Roofing

Cardinal Ambrose, PCAM, CCAM, CMCA, AMS. Albert Management

Carol Fulton, CIRMS, LaBarre/Oksnee Insurance Agency Gloria Kirkwood, CCAM, CMCA, AMS, PCAM, Palm Valley Country Club HOA Alison LeBoeuf, PrimeCo Dionne Petitpas, Three Phase Electric Jon Roy, CCAM, Associa Desert Resort Management

Wendy Cross, CMCA, AMS, CCAM, Vintage Group Carol Fulton, CIRMS, LaBarre/Oksnee Insurance Agency Rosie Galla, PCAM, CCAM-HR, CMCA, AMS, Associa Desert Resort Management Matt Lawton, CIC, CIRMS, Prendiville Insurance Agency Allison LeBoeuf, PrimeCo Loni Peterson, CCAM, CMCA, AMS, PCAM, Associa Desert Resort Management Joanne Rose, CCAM, CMCA, AMS, Associa Desert Resort Management Kelly Roseman, CMCA, AMS, The Springs Country Club HOA Brittany Smith, Vantage Point Construction

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31

CHAPTER EVENTS

EXCEPTIONAL SERVICE AWARDS Michael Lawton, CCIM/SIOR, Lawton Real Estate AMS Security Vista Paint Corporation Flood Response Vantage Point Construction

PRESIDENT’S AWARD John Walters-Clark, Associa Desert Resort Management

ABOVE & BEYOND AWARDS AWARDS COMMITTEE: Ronda Henry, SERVPRO Palm Desert John Walters-Clark, Associa Desert Resort Management

BOWLING COMMITTEE: Tiffany Christian, Epsten Grinnell & Howell, APC

BUSINESS PARTNER COMMITTEE: Chris Meyer, Asphalt MD’s

CLAC LEGISLATIVE SUPPORT COMMITTEE: Steven Shuey, PCAM, Personalized Property Management

EDUCATION COMMITTEE: Rhonda Drews, PCAM, Associa Desert Resort Management Steven Shuey, PCAM, Personalized Property Management

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Quorum February, 2018

CHAPTER EVENTS

GOLF COMMITTEE: Dea Franck, Esq., Epsten Grinnell & Howell, APC

MEMBERSHIP COMMITTEE: Rick Cech, Western Pacific Roofing Jolen Zeroski, CMCA, Union Bank HOA Services

PROGRAMS COMMITTEE: Julie Balbini, Esq., Fiore Racobs & Powers, A PLC

OKTOBERFEST COMMITTEE: Carlos Contreras, Sunshine Landscape Holly Smith, PowerStone Property Management

PUBLIC RELATIONS COMMITTEE: Ron DiGrandi, Vantage Point Construction

QUORUM COMMITTEE:

In addition, the Board of Directors gave Above & Beyond Awards to a few people and companies who have gone out of their way to help CAI-CV in 2017.

Micha Ballesteros & Flood Response for donating your office space for CAI-CV education events like MOTR. Rodney Bissell & Bissell Design Studios for donating your time to photograph communities and events and for serving in a leadership position with Quorum Magazine.

Carlos Contreras & Sunshine Landscape for donating your facility for CAICV events like MOTR and Committee Training.

Jeff Grady & Signarama for creating the outstanding signage for each of our events.

RECRUITER OF THE YEAR AWARD Cardinal Ambrose, PCAM, Albert Management For recruiting 27 new members in 2017

Susan Rosenberg, Desert Cities Indoor Air Dan Stites, CBCI Construction

WINE TASTING COMMITTEE: Rick Cech, CMCA, Western Pacific Roofing Allison LeBoeuf, PrimeCo

VOLUNTEER COMMITTEE: Brittany Smith, Vantage Point Construction

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33

CAI-CV 2018 PLATINUM SPONSOR SPOTLIGHT

Jeff and Sharon Nelson are the second generation of Nelsons running NPG Asphalt, which was founded by Jewell Nelson in 1961. NPG Asphalt serves communities throughout Southern California. The company holds Class-A General Engineering, Class-B General Building and C-12 Grading and Paving contractors licenses. Combining professional expertise and 55 years of experience, NPG Asphalt is ready to deliver exemplary service to associations throughout the Coachella Valley. NPG Asphalt is fully insured and will meet any community’s fiduciary requirements.

NPG Asphalt specializes in servicing community associations. Our professional staff understand the needs of community boards, managers and, of course, association homeowners. We take care of all the necessary communications with homeowners including posting of construction work times, hand delivering door knockers to all residents and offering shuttle service during construction.

Our mission is to provide the best service in the industry by using modern equipment, quality products, state-ofthe-art techniques and time-tested solutions developed over 55 years of business experience. NPG Asphalt is the best option to meet your association's paving needs.

• Slurry seal coat and crack filling • Concrete and ADA services • Signage and striping

• Masonry walls • New construction and maintenance

• Asphalt removal and replacement • Fabric overlays • Grinding and pulverizing

NPG Asphalt is proud to be a Platinum Level Corporate Sponsor of CAI-CV. We are also actively involved in CAI chapters in the Inland Empire, Orange County and Los Angeles. Our director of marketing, Kym Taylor-Burke, is currently co-chair of CAI-CV’s Awards Committee and is the former chair of the award-winning Quorum Magazine Committee.

Kym also served as Co-Chair of CAI-CV’s Membership Committee. NPG Asphalt supports CAI to help provide education to the common interest development (CID) industry. CAI provides valuable resources to our communities. Kym can be reached at (760) 822-3258 or by email at ktaylor.burke@npgasphalt.com.

Sharon Nelson is the chief financial officer of NPG Asphalt and is available to meet with current or potential customers at their convenience. Sharon can be reached at (951) 940-0200 or snelson@npgasphalt.com.

Come join us for a facility tour and learn how NPG Asphalt became a leader in the paving industry. NPG has developed a 1-Continuing Education Unit (CEU) Lunch & Learn and a 2-CEU Plant Tour, both accredited by CAMICB for CAI continuing education for managers. Remember to call NPG Asphalt for a tour, Lunch & Learn, or your next paving project.

Thank you to NPG Asphalt for their generous support of CAI-CV! 34

Quorum February, 2018

Contractors Lic. # 235717

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“Complete Roofing Services” Repairs • Re-roofing Roof Inspection • Maintenance Programs Polyurethane Foam • Built-up • Tile • Patios 3462 La Campana Way, Palm Springs, CA 92262 Phone (760) 416-5877 Fax (760) 320-8912 FIND US ONLINE AT www.westpacroof.com

DIRTY & UNHEALTHY BBQ/GRILLS? Full BBQ/Grill Cleaning & Repair Services • Serving HOAs, Property Managers, Realtors, and Vacation Rentals • Service Fleet Covers ALL of Coachella Valley • Cleaning and Repair Services for All Makes and Models • Annual Maintenance Program Customized to Fit Every Need • Multi-Property & Multi-BBQ/Grill Discounts Available

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35

WATER WISE

Watchful Water Use: The New Norm

controllers used by many homeowners associations in the valley are able to detect and delay watering after 1/8 of an inch of rain or more. We asked the State Water Board to consider using 1/8 of an inch as the threshold, rather than 1/10 of an inch, since that is what the current technology detects.

We also asked the state to consider exceptions to allow for water brooms,

Ashley Metzger, Desert Water Agency

T

he way we use water is changing – and it’s for the better. In recent years, local communities have made great, permanent strides to conserve. The most recent drought was an important lesson that the State of California does not want its residents and businesses to forget. The State Water Board is following Governor Jerry Brown’s order to make water conservation a way of life here, rain or shine.

What the State Water Board is exploring isn’t new territory. It is looking to prohibit wasteful practices that were banned during the drought. Many of these things make a great deal of sense, others need some work to be practical, and one would have significant budgetary impacts for cities and homeowners associations across the valley.

Local water agencies understand and appreciate the State Water Board’s effort to curb water waste. We work hard 24 hours a day, 365 days a year to bring clean, safe water to the tap and we really don’t like seeing it wasted. The State Water Board’s efforts to stop wasteful runoff make sense. So too does requiring automatic shutoff nozzles on hoses when they’re being used to wash vehicles. We have our own ordinances in place that regulate these issues.

Desert Water Agency worked closely with restaurants in our area to train

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Quorum February, 2018

their staff to bring water only after it is requested. This not only saves the water in the glass but also the four glasses worth of water it takes to wash just one.

It also makes sense for water features to recirculate. We support the State Water Board in making these prohibitions permanent.

Last month when the State Water Board was accepting comments, we requested that they look closer into the details of some of their prohibitions. Rain sensors that are tied to smart irrigation

pressure washers and buckets to wash down pavement and concrete areas, when needed. The Coachella Valley has many areas with fine silty sand that a broom will not effectively remove.

Additionally, there are times when water is needed to clean up spills. We hope the State Water Board will consider these exceptions when making their final determination.

PROPOSED PERMANENT PROHIBITIONS (CALIFORNIANS SHALL NOT...)

• Apply water to outdoor landscapes in a way that causes water to run off onto adjacent property, non-irrigated areas, sidewalks, roadways, parking lots or other structures.

• Use a hose to wash a vehicle – unless that hose is equipped with an automatic shutoff nozzle.

• Apply water directly to driveways and sidewalks • Use potable water in a fountain or water feature unless it is recirculating.

• Apply water to turf and ornamental landscapes during and within 48 hours after rainfall measuring 1/10 of an inch or more.

• Serve drinking water other than upon request at eating or drinking establishments.

• Irrigate turf on publicly owned or maintained landscaped medians or areas between the street and sidewalk, except where the turf serves a community or neighborhood function.

Penalties for violations would include fines of up to $500 per day.

Talk to us about your Community Association needs.

We can help.

While the other proposed prohibitions all deal expressly with wasteful use, one is a bit of an outlier. Watering in medians and in the areas between the street and sidewalks serves a purpose, especially when the alternative can cause gravel or sand spillage into roadways during rain storms. We certainly support planned conversions of narrow turf areas but this takes time, coordination and resources.

It will cost desert cities and homeowners associations many millions if this prohibition is approved. Desert Water Agency asked the state to reconsider this prohibition – or, at least, allow ample time for the necessary conversions to take place before penalties are levied.

During the drought, water agencies faced sharply declining revenues with only very minor cost reductions realized.

The high cost to provide water, no matter the amount, has led to rate increases and restructuring throughout California. It is a big challenge for public water agencies to recover costs and also incentivize conservation. We use policy, education, rebate programs and outreach to foster water savings. The state uses legislation and regulation to set a minimum threshold throughout California. We want to be sure that law- and rule-makers understand the real-world impacts of what they impose.

Desert Water Agency reached out to the local Community Associations Institute chapter, cities and other stakeholders to let them know about the proposed prohibitions and the opportunity to provide comments. We wanted the State Water Board to hear from valley organizations regarding the concerns unique to our community. You can see a copy of Desert Water Agency’s comment letter on our website, www.dwa.org.

1. Subject to credit approval. 2. ICS® and CDARS® are registered service marks of Promontory Interfinancial Network, LLC. Copyright © 2018 Banco Popular North America. Member FDIC.

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37

ABOUT CLAC

California Legislative Action Committee (CLAC) Update

By Steven Shuey, PCAM

T

he California Legislative Action Committee (CLAC) meets on a regular basis via teleconference to discuss important legislative issues proposed by our legislature. Our legislature is in session reviewing proposed laws right now. CLAC is reviewing all the applicable laws pertaining to common interest developments to determine what action or reaction we should have to each one. This cannot be done without the financial support of communities like yours. In 2017 we reached our goal and commitment of financial support to CLAC. Thank you to all who got involved in this support through attending events and contributing personally. By the way, the best support we can give is to join the Buck-ADoor campaign. This is a campaign where each community contributes $1 per home per year to the fund. This amounts to a little over eight cents per home per month. Every community can afford this. Please consider adding this to your HOA budget. Managers: talk to your boards. Board members: talk among yourselves and make a commitment to join this campaign.

MOTR Manager On The Run is an educational series designed with Community Association Managers in mind. The brief MOTR sessions are held bi-monthly at 8:30 am at CAI and is sponsored by a business partner who offers breakfast for the attendees. Featured speakers/presenters are experts in their field and provide useful pertinent industry information.

The last MOTR class focusing on Bad Behaving Boards was held on February 2, 2018, at Flood Response. Featured speakers were Dea Franck, Esq. from Epsten Grinnell and Howell, APC, and John Walters Clark, Community Association Manager from Associa-Desert Resort Management.

CONTACT THE CAI-CV OFFICE

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Quorum February, 2018

(760) 341-0559

admin@cai-cv.org

An important issue being discussed in this legislative session is a bill referred to as the "balcony bill". This bill, SB 721, proposes to require mandatory destructive testing to multi-story wood-frame condominium and apartment buildings with upper floor balconies or walkways, every 6 years, with overwhelming costs and consequences based on findings. Many are stating that if this bill passes, it could have the effect of bankrupting affected communities. My personal issue is that it will require opening up sealed exteriors of buildings and then patching the holes made for inspection to 15% of the building, every 6 years! Anyone with any building construction knowledge knows that patchwork can never be as water tight as original construction maintained properly, yet, even the best maintained buildings will be forced to comply. This could have the effect of destroying perfectly good buildings in a relatively short amount of time.

Various attorneys are writing about this subject and explaining the dire consequences. Please take the time to read-up on this issue and be prepared to take action that will stop its passage or at least reduce its current impact. CLAC will keep you posted as news becomes available.

Steven Shuey is a certified Professional Community Association Manager. He serves on the National Faculty of CAI and a past board member of the APCM. He also serves as your delegate on the California Legislative Action Committee (CLAC). He is a community association consultant with Personalized Property Management here in the Coachella Valley.

In January 2017 he was awarded the lifetime achievement award from CAI-CV. He may be contacted at IslandMgr@aol.com. You can follow him on Twitter (www.twitter.com/@IslandMgr)

DECEMBER CMCA CERTIFICATION RECIPIENTS On December 1, 2017, CAI-CV offered the Certified Manager of Community Associations (CMCA) preparatory class and exam to Chapter members.

This is the first time the exam has been offered locally. Our sincere thanks to Ramona Acosta, PCAM, Director of Business Development for Tinnelly Law Group, and Cyndi Koester, PCAM, Director of Client Relations for Swedelson Gottlieb, for preparing and teaching the class, and proctoring the exam. Congratulations to the following 18 CAI members who have earned their CMCA designation from the Community Association Managers International Certification Board (CAMICB):

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Rosanna Cardenas, CMCA, Vintage Group Rick Cech, CMCA, Western Pacific Roofing Jayme Fakehany, CMCA, FirstService Residential Mike Hall, CMCA, Partners Management Michael Hall, CMCA, Partners Management Monique Kerrigan, CMCA, Whitestar Management Vicki Kirkpatrick, CMCA Callen Lockett, CMCA, CAI-CV John McGara, CMCA, J&W Management Christopher Mitchell, CMCA, PCM-Inland Empire Lydia Pfannkuche, CMCA, The Management Trust Alison Posey, CMCA, Associa Desert Resort Management Rosaura Reyes, CMCA Bonnie Sanchez, CMCA, FirstService Residential David Schuknecht, CMCA, Personalized Property Management Elizabeth Weber, CMCA, Associa Desert Resort Management Brenda Wesley, CMCA, Weldon L. Brown Co. Joseph Wilson, CMCA CAI-CV.org

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39

MAINTENANCE

Preserving Your Asphalt - 5 Tips for Getting your HOA Community Ready for Winter

By Teri Braden

A

sphalt is designed to last 20 years or more if properly maintained. Follow this easy to-do list annually and extend the life of a very important and aesthetically pleasing portion of your HOA community. Ask your contractor to perform an inspection and provide you with an asphalt maintenance program.

1

Repair damaged asphalt. Any damaged asphalt

should be sawcut, removed and replaced. This includes potholes or severely cracked (industry term is “alligatored”) areas. Water will penetrate through the asphalt and into the subgrade which will cause the subgrade to become wet and unstable. An unstable subgrade is devastating to the asphalt causing further damage to the entire paved area.

Once the asphalt is removed, grading of the subgrade is necessary because the subgrade is typically the source of the damage. Subgrade varies from clay (absorbs water and expands) to sand (non-expansive). The soil may also need to be treated to stabilize the area or reprocessed to eliminate movement and water absorption.

2

Repair cracks. Cracks larger than 1” wide should be

repaired. There are various ways to do the repair. One option is to simply fill the crack with asphalt. Another is to grind down the asphalt, place paving fabric (Petro-tac) over the crack and then pave an asphalt overlay. These are “band-aid” fixes.

The real problem is the subgrade and therefore, the long term correction would be removing and replacing the cracked area.

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Quorum February, 2018

3

Crack seal. All cracks of 1” or less should be sealed using

a hot rubberized crack filler to protect the subgrade. It is an inexpensive way to slow the cracking process by not allowing water to damage the subgrade. It is a short-term solution.

4

Seal coat. Seal coating is one of the best and most cost

effective methods for protecting one of your largest investments: your asphalt. It is recommended that you seal coat every 3 to 4 years depending on weather and traffic conditions. The primary reason for pavement deterioration is oxidation and embrittlement. Without a seal coat, the oxidation from the sun will remove the oil (binder) from the asphalt thereby causing the asphalt to dry out. This is what causes the cracking and exposes the aggregate.

The asphalt must be properly cleaned before seal coating or it will cause the seal coat to peel and lift.

Make sure that you are not seal coating too often as that can cause the surface to be smooth and slippery.

5

Adjust your sprinklers. Water has an adverse effect on

asphalt. Talk to landscapers or maintenance personnel about reducing watering so that overwatering is not occurring especially during the rainy season. Adjusting sprinklers not only reduces the amount of water on the asphalt, it’s good for water conservation!

Finally, remember that your investment in a timely asphalt preventative maintenance program will not only keep your asphalt looking good, but will prolong the life of your asphalt for years to come!

Teri Braden is a Vice President with Ben’s Asphalt, Inc. and member of CAI for over 15 years providing Asphalt Repairs and Maintenance with expertise in Property Evaluations. She is an active member of CAI-Channel Islands, Greater Inland Empire, Orange County and Coachella Valley chapters. She has served on the Programs Committee for CAI-OC Chapter and Publications Committee for CAI-CV Chapter.

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Quorum February, 2018

We Save What You Pave.

OverKote is designed to maintain and beautify paved services. It will extend the life of asphalt for years... protecting your investment and the value of your neighborhoods.

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GREEN IS FOR LOCAL EVENTS

CAI-CV UPCOMING EVENTS

SIGN UP FOR LOCAL EVENTS AT CAI-CV.ORG AND FOR CAI NATIONAL EVENTS AT CAIONLINE.ORG

FEBRUARY

MARCH

CAI-CV’s Manager on the Run (MOTR) (for managers) WHEN: Friday, February 2, 2018 WHERE: CAI-CV’s NEW OFFICE – 75410 Gerald Ford Drive, Suite 102, Palm Desert

CAI National’s M100 Essentials of Community Management (for managers & board members) WHEN: Thursday – Saturday, March 8 – 10, 2018 WHERE: Los Angeles

CAI National’s M203 Leadership (for managers) WHEN: Thursday - Friday, February 8-9, 2018 WHERE: Oxnard

CAI-CV Educational Lunch Program & Mini Trade Show (for all members) WHEN: Friday, March 9, 2018, 11:30 a.m. Registration WHERE: Palm Valley Country Club, Palm Desert

CAI National’s M350 Manager & the Law (for managers) WHEN: Thursday - Friday, February 8-9, 2018 WHERE: Riverside

CAI-CV’s Board Member Workshop (BMW) (for board members) WHEN: Friday, March 23, 2018, 4:00 p.m.

WHERE: Shields Date Garden Auditorium, Indio

CAI-CV Educational Lunch Program & Mini Trade Show (for all members) WHEN: Friday, February 16, 2018, 11:30 Registration WHERE: Palm Valley Country Club, Palm Desert

CAI-CV’s Corks for CLAC Wine Tasting (for all members) WHEN: Friday, March 23, 2018, 5:30 p.m.

WHERE: Shields Date Garden, Indio

CAI-CV Board Basic Training (FREE for board members and managers) WHEN: Tuesday, February 20, 2018, 5:30 p.m. – 7:00 p.m.

WHERE: CAI-CV Classroom, 75410 Gerald Ford, Suite 102

2018 CORPORATE SPONSORS PLATINUM______ AMS Paving AMS Security Asphalt MD's Associa Desert Resort Management Bissell Design Studios, Inc. Conserve LandCare Diversified Asphalt Products Fiore Racobs & Powers, A PLC

Flood Response MRC Smart Technology Solutions A Xerox Company NPG Asphalt Pacific Western Bank Roof Asset Management Signarama Sunshine Landscape Vantage Point Construction Western Pacific Roofing

GOLD________

Automation Pride BRS Roofing Epsten Grinnell & Howell, APC Horizon Lighting Peters & Freedman, LLP Prendiville Insurance Agency PrimeCo Vintage Associates

SILVER________

Barcode Automation, Inc. Ben's Asphalt, Inc. Cline Agency Insurance Brokers Coachella Valley Water District First Foundation Bank Frazier Pest Control Nissho of California, Inc. O'Connell Landscape Powerful Pest Management Pro Landscaping, Inc. Seacoast Commerce Bank Sherwin-Williams Paint Co. Three Phase Electric

BRONZE__________________________ Adams Stirling, PLC Albert Management, Inc. Alliance Association Bank Animal Pest Management Association Reserves Beaumont Tashjian Blue Sky Landscape CBCI Construction Dunn-Edwards Corporation Farley Interlocking Pavers FirstService Residential Hort Tech Landscape Kasdan LippSmith Weber Turner, LLP

LaBarre/Oksnee Insurance Agency Law Office of Jennifer James, Esq. Mutual of Omaha Painting Unlimited Popular Association Bank S.B.S Lien Services SCT Reserve Consultants SERVPRO of Palm Desert Shetler Security Services Union Bank HOA Services United Paving Vista Paint Corporation

Quorum Magazine is printed at the CAI-CV Office on a Xerox Versant 180 Press.

Discounted printing is now available to CAI members. Call Bissell Design Studios, Inc. at (714) 293-3749 or the CAI-CV office for more information, 760-345-0559.