Lake La Quinta INSURANCE ISSUE 14 The Price of Insurance v. The Cost of Insurance 20 The Community Insurance and Risk Management Specialist (CIRMS) 24 Are You Covered? 26 Preparing for and Dealing with Disaster 28 The Risks of Inadequate Homeowners Association Insurance
HAPPEN Secure your communityâ€™s future with national resources and local expertise. Associa Desert Resort Management is uniquely positioned to help your community accomplish any goals. Top-tier management, comprehensive maintenance and a customizable menu of additional services ensure your community thrives, and our local, qualified staff are committed to being your trusted advisors every step of the way.
CONTACT US TODAY! 42-635 Melanie Place | Suite 103 Palm Desert, CA 92211 | 760.346.1161
Quorum April, 2019
REAL ROOFING KNOWLEDGE FOR REAL ROOFING SOLUTIONS
Spray Polyurethane Foam Systems Roof Repairs
Roof System Maintenance
Shingle & Shake Systems
760 813 9999 w w w . R A M R O O F. c o m
GURALNICK & GILLILAND
C OAC H E L L A VA L L E Y C H A P T E R
A SS O C I AT I O N S I N ST I T U T E
• 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
LIC. #493686 | INSURED
(760) 341-4345 • • • •
The HOA Specialist 25 years in the Coachella Valley Over 20,000 homes painted Our Foremen have been with us for 30 Years!!!
We believe that operating a quality painting business is really very simple ...
“Our work must be as good as the money you paid us.”
Visit us online for more information
PWLC II, Inc. has been providing quality landscaping services to Southern California clients since 1977. Our Palm Springs office employs more than 100 landscape professionals. Our company specializes in “High End Landscape and Golf Course Maintenance Service.” In addition to our Landscape and Golf Maintenance Divisions, we also have a Commercial Tree Division and a Landscape Construction/Enhancements Division. We are fully licensed and insured carrying in excess of $2 Million in Liability Insurance. Our licenses and credentials include a C27 Landscape Contractors License, a California Pest Control License and we retain a “Certified Arborist” on staff. For more information please contact us today at 760-323-9341 or by email at email@example.com.
2019 QUORUM COMMITTEE MEMBERS CAI-CV
JENNIFER JAMES, ESQ., CHAIR Green Bryant & French, LLP
RODNEY BISSELL, CO-CHAIR Bissell Design Studios, Inc.
EDUCATED BUSINESS PARTNER
EDUCATED BUSINESS PARTNER
GEN WANGLER, ESQ., CCAL, BOARD LIAISON Fiore Racobs & Powers, A PLC DIANE CARMONY Coachella Valley Water District
SIERRA CARR, CMCA Trilogy La Quinta CAI-CV
EDUCATED BUSINESS PARTNER
DEA FRANCK, ESQ. Epsten Grinnell & Howell, APC BRUCE LATTA, CMCA Parc La Quinta MARNE LOGAN, CCAM The Management Trust Desert Division
KUMAR S. RAJA, ESQ. Tinnelly Law Group CAI-CV
EDUCATED BUSINESS PARTNER
SUSAN BROWNE ROSENBERG Desert Cities Indoor Air, LLC JIM SCHMID The Lakes Country Club
DAVID SCHUKNECHT, CMCA, AMS Personalized Property Management STEVEN SHUEY, PCAM Personalized Property Management
Lake La Quinta
By David Schuknecht, CMCA, AMS
The Price of Insurance v. The Cost of Insurance: Pay an Amount Certain Now, or Be Surprised Later By Joel W. Meskin, Esq., CCAL, CIRMS
We Can Disagree Without Being Disagreeable By Steven B. Quintanilla, Esq.
20 The Community Insurance and Risk Management Specialist (CIRMS) By Robert A. Travis, CIRMS, CPIA
24 Are You Covered? By Brian S. Cohen, Esq., CPA
26 Preparing for and Dealing with Disaster By Kelly G. Richardson, Esq., CCAL 4
Quorum April, 2019
JOSH WIDENMANN MRC Smart Technology Solutions A Xerox Company CREATIVE DIRECTOR & GRAPHIC DESIGNER CAI-CV
EDUCATED BUSINESS PARTNER
RODNEY BISSELL Bissell Design Studios, Inc. firstname.lastname@example.org (714) 293-3749
ARTICLE SUBMISSIONS OR ADVERTISING INFORMATION email@example.com
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................................. 39
AMS PAVING.................................................... 17 ASPHALT MD'S................................................ 11 BEN'S ASPHALT............................................... 12 NPG ASPHALT.................................................. 42
ATTORNEYS FIORE RACOBS & POWERS, A PLC.................. 19 GREEN BRYANT & FRENCH, LLP...................... 12 GURALNICK & GILLILAND.................................. 3
BANKING MUTUAL OF OMAHA BANK.............................. 11
CONSTRUCTION VANTAGE POINT CONSTRUCTION, INC............ 43
DESIGN BISSELL DESIGN STUDIOS, INC....................... 42
GATES & GARAGE DOORS AUTOMATION PRIDE........................................ 27
CHAPTER NEWS 7 CAI-CV New & Renewing Members 12 CAI-CV Educated Business Partners Welcome Aboard
By Susan Browne Rosenberg 31 NFP 39 Delphi Law Group, LLP
44 2019 Corporate Sponsors
34 Corks for CLAC Wine Tasting Event 2019 44 Upcoming Chapter Events
30 About CLAC
22 Lunch Program and Mini Trade Show
33 CLAC Buck-A-Door Campaign 36 Maintenance
Friday, March 29, 2019 Ask the Attorney
March 8, 2019 Ask the Attorney
FLANDERS PAINTING INC.................................. 3
The Risks of Inadequate Homeowners Association Insurance By Sarah Kyriakedes, Esq.
Fiore Racobs & Powers, A PLC
21 CAI-CV's Board Member Workshop
CLAC Update By CAI-CLAC Public Relations Committee
Turf Conversions – Do It the Right Way By Randy Mitchell
Based Smart Controller By Katie Evans
PEST CONTROL CARTWRIGHT TERMITE & PEST CONTROL...... 43 FRAZIER PEST CONTROL, INC......................... 32 POWERFUL PEST MANAGEMENT...................... 3
REALTORS PALM SPRINGS REGIONAL ASSOCIATION OF REALTORS.................................................. 19
RESERVES ADVANCED RESERVE SOLUTIONS, INC........... 27
31 Assistant Manager on the Run (AMOTR) 40 Water Wise 33 October Calendar Changes One Way to Save: Install a Weather
CONSERVE LANDCARE.................................... 29 PWLC II, INC. LANDCARE MANAGEMENT.......... 3 WATER RITE - VINTAGE ASSOCIATES, INC...... 43 PRO LANDSCAPE INC...................................... 32 ASSOCIA DESERT RESORT MANAGEMENT....... 2
28 HOA Law
6 President’s Message 13 Platinum Spotlight
PRENDIVILLE INSURANCE AGENCY................ 43
BRS ROOFING INC. ......................................... 43 ROOF ASSET MANAGEMENT............................. 3 SUNTECH ROOFING......................................... 32 WESTERN PACIFIC ROOFING........................... 27
SECURITY AMS CONNECT................................................ 17
FROM THE CHAPTER
President’s Message Mike Traidman Mira Vista at Mission Hills HOA
AI-CV is kicking in to high gear in April with our visit with legislators in Sacramento on April 8th and 9th. Each year, CAI’s California Legislative Action Committee (CLAC) hosts the Day at the Capitol where all eight California chapters send delegates to visit with elected officials. The purpose is to inform them about CIDs and to educate lawmakers about legislation that CLAC supports or opposes. The group going from CAI-CV will be meeting with Assemblymen Chad Mayes and Eduardo Garcia, and Senator Stone. See page 30 for more information about pending legislation that could impact HOAs. As part of our ongoing effort to elevate the CID industry, the Education Committee offered its first Assistant Manager on the Run (AMOTR) class in CAI-CV’s classroom on March 1st. The class about best practices for assistant mangers was taught by Cardinal Ambrose, PCAM® and Rhonda Drews, PCAM® (Associa Desert Resort Management). The next one-hour AMOTR program will be offered at 8:30 a.m. on May 3rd. Our thanks to the Programs Committee for a fantastic Ask the Attorney program on March 8th, and, of course, a special thanks to our esteemed panel of legal experts, Christina Baine DeJardin, Esq. (Delphi Law Group), Susan Hawks McClintic, Esq. (Epsten Grinnell & Howell), and Laurie S. Poole, Esq., CCAL (Adams|Stirling). On March 21st and 22nd, CAI’s M-205 about Risk Management was offered in the CAI classroom to managers. Our sincere thanks to Bob Travis for making the long trip from Pennsylvania to teach the class (see Bob’s article on page 20). And, we can’t forget to toast the Wine Tasting & Del Mar Committee for another fantastic Corks for CLAC event at Shields Date Garden on Friday, March 29th. It was a beautiful evening, with an excellent selection of wines and champagne, and impressive silent and live auctions. Great job! Prior to the wine tasting, community board members were invited to attend a two-hour legal update and Q&A hosted by Julie Balbini, Esq. (Fiore Racobs & Powers) and Kumar Raja, Esq. (Adams|Stirling). Thank you both for an outstanding session. On Friday, April 5th, the Education Committee will host a Manager on the Run program at the CAI-CV classroom. The topic will be communicating with the media. If you have ever been caught off guard by a reporter’s question, you know the importance of being prepared. On Friday, April 19th, our Programs Committee is bringing in guest speaker and insurance executive, Brian Cohen, to talk about insurance for associations. Brian is an attorney, and CPA, and Chairman & CEO of Arden Insurance Services, Operating Partner of Altamont Capital Partners and a Director of Embark. His talk is called “Risks Hiding in the Bushes – Are You Covered?,” where he will provide an update on cyber security, fidelity bonds, and other important insurance topics. CAI-CV’s annual Spring Golf Tournament will be held on Friday, April 26th at the lovely Desert Princess Golf Club in Cathedral City. The theme is “Golfing with the Stars” and the Golf Committee has sponsor-paid golfing available for any CAI-CV managers interested in playing. CAI-CV welcomes great golfers and first-timers. If you don’t want to golf, you can still participate in the lunch program and auction. Tickets are available online. As I close, I want to remind our members that CAI-CV runs on volunteer power. If you are not already volunteering on one of our 17 committees, I encourage you to get involved. Volunteering is the fastest and least expensive way to build relationships. Please call the CAI-CV office and let us help you find the best committee for your interests and schedule. I wish you all a wonderful April.
Mike Traidman Mike Traidman
Mira Vista at Mission Hills HOA
Quorum April, 2019
CAI-CV NEW & RENEWING MEMBERS
2019 COACHELLA VALLEY CHAPTER BOARD OF DIRECTORS
MARGARET "GEN" WANGLER, ESQ., CCAL PAST-PRESIDENT Fiore Racobs & Powers, A PLC CAI-CV
EDUCATED BUSINESS PARTNER
DEA FRANCK, ESQ. SECRETARY Epsten Grinnell & Howell, APC
EDUCATED BUSINESS PARTNER
CARDINAL AMBROSE, CMCA, AMS, PCAM DIRECTOR Associa Desert Resort Management MICHA BALLESTEROS DIRECTOR Flood Response
NEW VOLUNTEER LEADERS
ALAN SMITH POOLS
Mark Moonier (415) 336-5161 firstname.lastname@example.org
CORONADO GARDENS HOMEOWNERS ASSOCIATION
RENEWING BUSINESS PARTNERS
EDUCATED BUSINESS PARTNER
JOLEN ZEROSKI, CMCA TREASURER Union Bank
NEW MANAGER MEMBERSHIPS
Kevin Kostka (714) 628-9494 email@example.com
MIKE TRAIDMAN PRESIDENT Mira Vista at Mission Hills HOA MATT LAWTON, CIC, CIRMS PRESIDENT-ELECT Prendiville Insurance Agency
NEW BUSINESS PARTNERS
EDUCATED BUSINESS PARTNER
RHONDA DREWS, CMCA, AMS, PCAM DIRECTOR Associa Desert Resort Management LONI PETERSON, CMCA, AMS, PCAM DIRECTOR Associa Desert Resort Management STEVEN SHUEY, PCAM DIRECTOR Personalized Property Management LOUISE STETTLER DIRECTOR Palm Valley Country Club HOA
CAI Coachella Valley Office 75410 Gerald Ford Drive, Suite 102 Palm Desert, CA 92211 Tel: (760) 341-0559 Fax: (760) 341-8443 Website: www.cai-cv.org
ASSOCIATION RESERVESCA/INLAND EMPIRE Kevin Leonard (909) 906-1025 firstname.lastname@example.org
Thomas Ostergren (415) 737-0244 email@example.com
ASSOCIA DESERT RESORT MANAGEMENT Kristen Soto (760) 346-1161 firstname.lastname@example.org
DIVERSIFIED ASPHALT PRODUCTS, RENEWING MANAGER INC. MEMBERSHIPS Lou Moreno (714) 793-7783 email@example.com
HIGH TECH MAILING SERVICES Refika Jerkic (760) 779-0460 firstname.lastname@example.org
O'LINN SECURITY, INC.
John Wiesner (760) 904-4192 email@example.com
ASSOCIA DESERT RESORT MANAGEMENT Terry Kramer (760) 772-2092 firstname.lastname@example.org
Kimberly O'Linn (760) 320-5303 email@example.com
Richard Smetana (760) 333-1118 firstname.lastname@example.org
PALM SPRINGS REGIONAL ASSOCIATION OF REALTORS
DESERT FALLS MASTER ASSOCIATION
Grace DeGaine Mike Durbin Bill Emery
LA RESIDENCE HOMEOWNERS ASSOCIATION Beatrice Keats Michael Keranen Martha Stephen Bryan Stone Wende Wagner
POLO CLUB MAINTENANCE ASSOCIATION Michael Cali Walt Schwartz Shoray Wolfe
SHADOW MOUNTAIN FAIRWAY COTTAGES Bobbi Anthony Peter Breikss Sue Carney Brad Czarske Janet Czarske Mike LaTorre David Sauve Suzy Weeks
RENEWING VOLUNTEER LEADERS
Karen Tabbah (760) 320-6885 email@example.com
Martha Fogg (760) 341-6016 firstname.lastname@example.org
RANCHO MIRAGE COUNTRY CLUB Kay Bristow Bob Hathcock HOMEOWNERS ASSOCIATION
Sammy Ahmad (877) 648-0602 email@example.com
THREE PHASE ELECTRIC Dionne Petitpas (949) 457-1252 dionne@HOAlighting.com
WESTERN PACIFIC ROOFING CORP. Linda Johnson (760) 416-5877 firstname.lastname@example.org
William Kingston (760) 328-2350 email@example.com
SUNRISE COUNTRY CLUB HOMEOWNERS ASSOCIATION Eric Charos (760) 328-6045 firstname.lastname@example.org
THE MANAGEMENT TRUST, DESERT DIVISION
CORONADO GARDENS HOMEOWNERS ASSOCIATION
INDIAN CREEK VILLAS Peter Chryss Holly Hannon Sandra Short Randall Steele Ivan Thomson
SUN CITY SHADOW HILLS Erica Hedlund Robert Israel Fera Mostow
Ellen Woolard (215) 292-7097 email@example.com
CAL LOCKETT Executive Director firstname.lastname@example.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.
CORRECTION CAI-CV’s Quorum Magazine is produced by volunteers who work diligently to be factual with their reporting, however, occasionally mistakes are pointed out by our readers. Here’s one from Grace De Gaine, a board member of Coronado Garden’s HOA letting us know that our January feature had some mistakes. Grace sent the following corrections: "Coronado Gardens is a 55+ community (the article referred to them as 'family friendly'). We have a monthly assessment of $211 per lot which does not include Direct TV. We enjoy many walking paths, but they are not lit with LED lighting." Thank you, Grace, for keeping us on our toes. CAI-CV.org
Lake La Quinta HOA By David Schuknecht, CMCA, AMS
ake La Quinta is a stunning community of 288 homes located in the heart of La Quinta at 47500 Adams Street. As you enter their 24/7 guarded gates, the incredible 25-acre lake - the size of 19 football fields - takes your breath away. Lush landscaping and flowering gardens make this community a true oasis in the desert. Lake La Quinta was developed by AG Spanos in 1991 and completed in 2002. About half of the homes are waterfront, located on quiet cul-de-sacs that jet into the
Quorum April, 2019
lake, creating waterways that residents may investigate by boat. Huge fountains explode with fresh water to aerate the lake for an abundance of fish, turtles, ducks and other water-loving animals. Catch and release fishing is encouraged. The homes are single-story detached ranging between 2,000 and 3,600 square feet and priced from $475,000 to $1.2 million. Residents on the water may have their own docks where battery and muscle-powered boats are allowed. Those who
are inland can enjoy the beautifully landscaped waterfront park at the west end of the development that includes a boat dock with boats accessible to residents, tennis, bocce ball, shaded picnic areas, bathrooms and a lovely swimming pool. You might have guessed that Lake La Quinta has their own yacht club for socializing. Assessments range from $430 for waterfront homes and $406 for those that are lake-adjacent. About half of the residents are full-timers and many of the
part-timers are snowbirds. The neighborhood includes a nice mix of retirees and families. Lake La Quintaâ€™s developer hit the jackpot in terms of location. Since 1991 when development started, the surrounding area has become a shopping mecca for the Valley. Most recently, a new all-reserved-seating Century Movie Theater has been built across the street, joining the ranks of ALDI, In-n-Out, Lowes, Target, Stein Mart and many other
“WE STRIVE TO PRESERVE HOME VALUES FOR OUR RESIDENTS WHILE KEEPING LAKE LA QUINTA A FRIENDLY PLACE THAT PEOPLE WANT TO CALL HOME – IT’S BEAUTIFUL AND WE LOVE IT HERE.” restaurants and services – all within walking distance without crossing any major streets. Old Town La Quinta, with boutique shopping, bars and restaurants is just around the corner. Lake La Quinta’s five-member board is proud of their work to conserve energy. They are in the process of converting some of the common areas to desertscape and they run the water control pumps on commercial circuits to reduce power consumption. Lake La Quinta uses a gravity feed system to get water to
Quorum April, 2019
their landscaped areas. Other projects underway are the just completed bocce ball court and the resurfacing of their streets and swimming pool. One of their most impressive projects was to install 90 solar street lights throughout the community. The Lake La Quinta board receives help from four standing committees, Architectural Review (ARC), Landscape, Security and Facilities. Jim Boucher, President of the HOA said, “We strive to preserve home values for our residents while keeping Lake La Quinta
a friendly place that people want to call home – It’s beautiful and we love it here.” Lake La Quinta is managed by The Gaffney Group and they work with many CAI business partners including Vintage Associates for landscaping, Allied Universal for security, Guralnick & Gilliland for legal services, Pacific Western Bank and Powerful Pest Management. For more information about Lake La Quinta, call Bobbie Gaffney, AMS, PCAM at (760) 327-0301 or email her at email@example.com. David Schuknecht, CMCA, AMS is a community manager for PPM. He may be reached at PPM by phone at (760) 325-9500 or by email at David@PPMinternet.com
family owned & operated since 1961
EDUCATED BUSINESS PARTNER profile, cold milling, pulverizing & soil treatment
Ask about our Educational Lunch and Learn Programs Serving all of Southern California
NATIONAL SERVICE PROVIDER SANTA ANA / RIVERSIDE / PALM DESERT / YUCAIPA 42215 Washington St. #A340| Palm Desert, CA | 92211 760.336.9892
A FULL SERVICE LAW FIRM
Providing Practical Approaches in: CC&R Interpretation, Drafting and Enforcement Opinion Letters Contract Drafting and Negotiation Civil Litigation Assessment Recovery 75100 Mediterranean Palm Desert, California 92211
Choose Educated Business Partners Micha Ballesteros, Flood Response Rodney Bissell, Bissell Design Studios, Inc. Susan Browne Rosenberg, CIH, Desert Cities Indoor Air, LLC Kimberly Burnett, DSI Security Services Linda Cardoza, Alliance Association Bank Will Cartwright, Cartwright Termite & Pest Control, Inc. Rick Cech, Roof Asset Management Todd Chism, Patio Shoppers Tiffany Christian, Epsten Grinnell & Howell, APC Adam Eves, EmpireWorks Lori Fahnestock, Powerful Pest Management Dea Franck, Esq., Epsten Grinnell & Howell, APC Julie Frazier, Frazier Pest Control, Inc. Elaine Gower, Naumann Law Firm, PC Michael Graves, SCT Reserve Consultants Matthew Hills, Securitas Security Services USA, Inc. Tim Hoss, BEHR & KILZ Paints & Primers Jennifer James, Esq., Green Bryant & French, LLP Megan Kirkpatrick, Kirkpatrick Landscaping Services Jared Knight, Vista Paint Corporation Katy Krupp, Fenton Grant Mayfield Kaneda & Litt, LLP Matt Lawton, CIC, Prendiville Insurance Agency Larry Layton, Kirkpatrick Landscaping Services Alison LeBoeuf, Sherwin-Williams Mike Mastropietro, OCBS, Inc. Chris Meyer, Asphalt MD's Greg Morrow, Eagle Roofing Products Fran Mullahy, Vintage Associates Mike Murrell, Farmers Insurance - Mike Murrell Agency Matt Ober, Esq., Richardson Ober, PC Chet Oshiro, EmpireWorks Mallory Paproth, SCT Reserve Consultants Elisa Perez, Esq., Epsten Grinnell & Howell, APC Jay Powell, Ben's Asphalt Dana Pride, Automation Pride Kelly Richardson, Esq., Richardson Ober, PC Brent Sherman, Animal Pest Management Services, Inc. Brittany Smith, Vantage Point Construction, Inc. Kymberli Taylor-Burke, NPG Asphalt Liz Williams, AMS Paving Taylor Winkle, Roof Asset Management Bevan Worsham, AMS Paving Jolen Zeroski, Union Bank Homeowners Association Services
Become an Educated Business Partner Call the CAI-CV office or go to www.cai-cv.org for more information.
Quorum April, 2019
2019 PLATINUM SPONSOR SPOTLIGHT
The Recognized Authority in Community Association Law Fiore Racobs & Powers is a pioneer in residential and commercial community association law in Southern California. Since opening its doors in April 1973, Fiore Racobs & Powers has expanded to four offices, located in the Coachella Valley, the Inland Empire, Orange County and San Diego County. Our Firm was founded on the core value of people making a difference through the practice of law. We are dedicated to the success of community associations through the practice of law, the education of our clients and industry professionals, and the advancement of public policy. Our practice areas include: • CC&R, Rule and Architectural Enforcement
• Legal Opinions
• Governing Document Amendment
• Assessment Collection
• Contract Review and Preparation
• Small Claims Assistance
Margaret "Gen" Wangler, Esq., CCAL, opened the Firm's Coachella Valley office in 1992. She is the Senior Shareholder and Senior Supervising Attorney for the Coachella Valley office, and has been an active member of CAI for over twenty years. Gen is immediate past president of the Chapter and also serves on the Chapter's Education Committee. Gen is a fellow of the College of Community Association Lawyers ("CCAL"). Julie R. Balbini, Esq., joined the Firm in October 2016 and works in the Coachella Valley office. She has practiced law in the Valley since 2002, and is enjoying the challenge of representing community associations. Julie is very active in the Chapter. She is Chair of the Programs Committee, and a member of the Public Relations Committee. A highlight in the firm's history was Gen's representation of the plaintiff in Villa De Las Palmas Homeowners Association v. Terifaj from trial to the California Supreme Court. In that case, the Palm Springs association sought to enforce its long standing rule against pets. After initiating the litigation, the members of the association approved an amended and restated declaration of covenants, conditions and restrictions that included a "no pets" restriction. The association prevailed at trial, and in the Court of Appeal. The California Supreme Court then took up the case, and made the landmark ruling that restrictions added to an association's recorded declaration by amendment are entitled to the same presumption of reasonableness as the restrictions in the original declaration. The Firm's relationship with CAI began in the early 1980s. CAI was one of the few organizations that promoted education for community associations and the professionals who support them. The Firm recognized the importance of education to both the industry and legislators in Sacramento. The Firm's founder and President, Richard S. Fiore, Esq., CCAL, played a major role in forming the California Legislative Action Committee ("CLAC") in the 1980's and served as Chair from 1991-1994, during its pivotal growth years. The Firm continues to be active in promoting the industry's objectives in the legislative arena. Fiore Racobs & Powers looks forward to continuing its close relationship with CAI as part of its commitment to making a difference through the practice of law.
Thank you to Fiore Racobs & Powers for their generous support of CAI-CV! CAI-CV.org
The Price of Insurance v. The Cost of Insurance: Pay an Amount Certain Now, or Be Surprised Later By Joel W. Meskin, CCAL, CIRMS, Copyright © 2018 humble opinion, focusing primarily on the point of sale premium should be the last decision. The key obligation is to determine whether the insurance proposal is proper coverage to protect, preserve and enhance the association assets.
CAUTION: BOARD MEMBERS BEWARE
ommunity associations are creatures of budget. The primary purpose of a budget is to provide certainty and avoid surprises as the board complies with its obligation to protect, preserve and enhance the association assets. More often than not, board members primarily focus on “price” when purchasing insurance. However, “price” is only relevant if the options presented substantially provide the same coverage - apples for apples; or there are never any claims.
CAVEAT: REMEMBER NOT ALL INSURANCE IS CREATED EQUAL! The reality is most boards never make the ultimate insurance decision, because they defer this task to the Community Association Manager (CAM). Not only do they defer to the CAM for insurance decisions, they do not meet in person with the community association insurance professional. It is one thing to defer the insurance leg work to the CAM, however, it is another thing for the CAM to make the insurance purchase and maintenance decisions on their own. In my 14
Quorum April, 2019
More often than not, the management agreement with the association requires that the association unilaterally indemnify the management company and the CAM for claims arising out of services provided. The board is obligated to protect, preserve, and enhance the association assets. Primarily focusing on price in the insurance decision process is counterintuitive to this duty. Where in the governing documents does it provide that the board has a duty to save the association money when purchasing insurance? Nowhere! Rather, the duty is to determine what insurance will best protect the association assets. Boards are authorized to seek counsel from professionals when an issue is beyond the knowledge of the average board member. Insurance is one "THE 'COST OF INSURANCE' of those issues. IS THE TOTAL AMOUNT THE Moreover, why ASSOCIATION INCURS AT wouldn’t a board THE TIME OF A LOSS OR always seek CLAIM PLUS THE VALUE OF counsel from a PEACE OF MIND THAT THE community assoASSOCIATION RECEIVES ciation profesDURING THE CLAIMS PROCESS." sional? Boards are always looking for cheaper anything. Why not obtain counsel from a community association insurance professional who does not charge? The “cost of insurance” is not the same as the “point of
FEATURE sale premium.” The “cost of insurance” is the total amount the association incurs at the time of a loss or claim plus the value of peace of mind that the association receives during the claims process. If the board made sure they purchased the best coverage for the association, the cost of insurance will have been a good deal. However, if the focus was the point of sale price as opposed to coverage, there is a very possible reality that the cost of insurance could be significantly higher than the price, because the association will be self-insured for the coverage that was sacrificed for the cheaper price.
CAVEAT: MORE IMPORTANT FOR ASSOCIATIONS THAN “POINT OF SALE INSURANCE PREMIUMS” IS NOT BEING SURPRISED BY UNCOVERED CLAIMS! CAUTION: CAMS BEWARE! Many management agreements expressly provide that the CAMs assume the task of purchasing and maintaining the association’s insurance program. In other situations, many management companies take "THE KEY INDIVIDUALS on this role volTHAT SHOULD BE MOST untarily and may CONCERNED HERE ARE involve preferred MANAGEMENT COMPANY insurance busi'OWNER' AND BOARDS." ness partners in the process. This practice in and of itself is not necessarily a problem. However, there are a number of traps for the unwary, including who is ultimately responsible for any errors in the purchase and maintenance of insurance. The key individuals that should be most concerned here are management company “owner” and boards.
owed the CAM is by the associations assets, special assessments, or a loan. It is also important that the management company or CAM understand the indemnity provisions of your state. Not all states will allow indemnification for someone’s active negligence, and many, if they do allow indemnity for active negligence, that provision must be expressly set forth in the agreement.
2. COMMUNITY ASSOCIATION D&O POLICY Most boards, management companies and CAMs “assume” that since the management company was working on behalf of the association, and since it is an additional insured on the D&O policy, that the CAM will be covered and that is how the insurance claim against the CAM, for whom the association agreed to provide defense and indemnity, will be funded. Unfortunately, virtually every D&O policy on the market “excludes” coverage for claims by the association against the management company or CAM. Even worse is that there are some D&O policies where the management company or CAM is not even covered under a policy.
3. MANAGEMENT COMPANY/CAM PROFESSIONAL LIABILITY INSURANCE Virtually all CAM Professional Liability Insurance “expressly excludes” any claims arising out of insurance claims. This should make sense, because a professional liability policy is intended to cover the professional from its industry professional services. CAMs are not licensed insurance professionals.
1. INDEMNIFICATION Most management agreements have an indemnity provision that provides that if the CAM is sued for something it did for or on behalf of the association, the insured needs to provide the CAM defense and indemnity. Accordingly, the managed association must be able to fund that obligation. Many CAMs and boards “assume” that this can be funded by the association’s Directors and Officers policy where the CAM is almost certain to be added as an additional insured or are included in the policy definition of insured. As a result, the funding of the obligation CAI-CV.org
FEATURE company is not concerned about losing the client, there is no problem. Does the management company and CAM have an obligation to disclose this to the association before the agreement is entered? Second, what will the neighbor associations or other associations think when they hear about this? What will the impact be on the association property values?
6. MANAGEMENT COMPANY CEOs BEWARE
4. CONFLICT OF INTEREST Some management companies or CAMs have their own preferred insurance professional who in turn has its own preferred insurance carrier. There are also some where the insurance is a division, affiliate or subsidiary of a management company. These may in fact provide the best products to protect the association’s assets. However, there are two key requirements. First, any such relationships must be expressly disclosed to the association board. Second, under this scenario, the management company or CAM must still conduct its due diligence as to the best available coverage, and not just the best price.
"...THE MANAGEMENT COMPANY OR CAM MUST STILL CONDUCT ITS DUE DILIGENCE AS TO THE BEST AVAILABLE COVERAGE, AND NOT JUST THE BEST PRICE."
5. BUSINESS GOOD WILL There are “Good Will” issues that can arise from insurance issues. First, very often the management agreement has a unilateral indemnity agreement flowing from the association to the management company or CAM. Theoretically, if the CAM does not purchase and maintain the appropriate coverage, he/she is still protected, because the association must defend and indemnify the management company or CAM. Who will tell the board that we, the management company are being sued, but you have to defend us. As long as the management
Quorum April, 2019
One of the biggest mysteries I have encountered in my years in this industry is why there are management company CEOs, executives and owners who do not make it one of their highest priorities to make sure the association’s insurance program is the best. Management companies spend so much time making sure they are additional insureds on the association insurance policies, but they do not make sure the association’s policy is the best. The management company and the CAM’s coverage is only as good as the association's.
TAKE AWAYS • Community association insurance professionals do not charge to meet, counsel or present to your board. Make sure the insurance professional’s E&O is on the line, not the management company or CAM. The insurance professional, not the CAM, is the licensed insurance expert. • First, boards owe a fiduciary duty to the association. By relying on a licensed community association insurance professional, the board develops a strong defense to a strong business judgment defense. Second, the counsel is free. • CAMS should never sign an application on behalf of an association. • Always make the board review the application, make any changes they need and have the appropriate board member sign the application. • Not all insurance coverage is equal. Joel Meskin, Esq., CCAL, CIRMS, is the Vice President of Community Association Insurance and Risk Management for McGowan & Company, Inc. He is an attorney and holds CAI's coveted CCAL and CIRMS designations. Joel can be reached at (440) 333-6300 or by email at firstname.lastname@example.org.
• Asphalt Repair, Patching & Crack Seal • Asphalt Removal & Replacement • All types of Slurry Seals, Pavement Coatings & Striping • ADA Compliance
amspaving.com License #415436
Community security to network security: HOA protection and IT solutions. The world is changing. From electronic security systems that protect your community and residents to advanced IT environment solutions, get ironclad protection. As industry leaders, we’ve forged two decades of trusted relationships. Providing integrated, technology enabled services from a single source, we safeguard everything from perimeter walls to firewalls. So whether it’s your community or your IT network, we’ve got your back. Always.
For more, go to amsconnectme.com or call 760.341.3593. We’ll get you protected and connected. You’ll see. CAI-CV.org
We Can Disagree Without Being Disagreeable By Steven B. Quintanilla, Esq.
here was a time when the poisonous rhetoric of politics was limited to national political discourse over highly emotionally charged issues such as abortion, immigration, welfare, equal rights, war, and other volatile issues that polarized our nation. Today, however, it seems to be commonplace for the broadcast media, state government, local government, and even private homeowners associations and some non-profit boards to engage in such vitriolic behaviorâ€“which sadly reflects on the rapid deterioration of basic civility in our society overall. I am distraught that many of my fellow citizens are losing the ability to discuss anything that divides us with any inkling of civility.
Quorum April, 2019
"Such uncivil behavior not only closes the mind of the 'not-sonice' person, but it also shuts down the minds and ears of those decent people who are the targets of the uncivil behavior simply as an automatic defense mechanism against the pain and distress of being unfairly ridiculed and disrespected in a public setting." Civility to me means treating people with respect, being courteous and polite to others, and listening to others with genuine and sincere consideration, even if you donâ€™t agree with them. Incivility, on the other hand, means being rude for rudeness sake, leveling personal character attacks, talking much louder than necessary, and not respectfully listening to other points of view. What distinguishes civility from incivility is as clear to me as the difference between black and white, day and night, and a nice and not-so-nice person. Civility is an indispensable component to maintaining a democracy such as ours since we live in a pluralistic and very diverse society with different
cultural norms, religious beliefs, and perspectives on life in general. In a democracy, while it is okay to recognize and acknowledge these differences, for an effective, meaningful, and enduring democracy, we must work on being civil with each other so we can understand each other better, which will help us determine where there is room to reach consensus on resolving certain issues that divide us so that we can live peacefully and happily together in our communities. Resorting to uncivil behavior, particularly in a public setting, whether on the dais or from the floor by a member of the public is counterproductive in the context of the democratic
the Palm Springs ®
decision-making process. Uncivil behavior gets in the way of learning the truth, learning about good and workable ideas, learning about the needs of others, and learning how to contribute in “alternative” positive ways to making our communities better places to live, work and play. Such uncivil behavior not only closes the mind of the “not-so-nice” person, but it also shuts down the minds and ears of those decent people who are the targets of the uncivil behavior simply as an automatic defense mechanism against the pain and distress of being unfairly ridiculed and disrespected in a public setting. The public decision-making arena should be a forum for temperate, thoughtful, and intelligent dialogue and debate with the objective of finding common ground on matters of public interest. This means that tolerance for opposing views is crucial, which requires the ability to treat others with respect, the ability to be courteous and polite to others, and the ability to listen to others with sincere consideration. In essence, public discourse in any public setting should be a bastion of civility which dictates that everyone involved–decision-makers and members of the public— display genuine respect for those who have positions with which they may disagree with. So, while every citizen may have a constitutional right to speak their minds (with some exceptions), we should all remember that “incivility” is not a constitutional right, but rather it is simply a choice—and an easy one at that. Be nice instead.
Steven B. Quintanilla has been practicing Municipal Law for 25 years and he owns and manages the Law Offices of Quintanilla & Associates based in Rancho Mirage. This article appeared in The Desert Sun and was reprinted with permission. Steve Quintanilla can be reached at (760) 993-3702 or by email at email@example.com.
IN THIS ISSUE Issues Mobilization Grant 3 What You Need to Know About Logos and Trademarks Page 5 July/Aug Calendar Page 6 You’re Even More Vital to New-Home Buyers Page 14 PSRAR Affiliate Network News Page 16
The Community Insurance and Risk Management Specialist (CIRMS) By Robert A. Travis, CIRMS, CPIA
or decades now whenever community association board members have looked for the most qualified community association managers to entrust their Association and its valuable assets with, they have often looked for managers that hold the prestigious Professional Community association Manager (PCAM) designation or other manager designations awarded by Community Associations Institute (CAI). CAI has recognized the importance of creating designations to identify the community association expertise of other professionals that service community associations and community managers in highly specialized disciplines. In the insurance and risk management field, CAI understood the importance of identifying and recognizing the most qualified individuals to partner with community associations when they developed the Community Insurance and Risk Management Specialist (CIRMS). Individuals that have secured their CIRMS designation have demonstrated a high level of competence within their profession through the qualifying process. The first item of importance to community association leaders and managers is experience. CIRMS designees must provide references from both community associations and community association industry professionals and have a minimum of five years’ experience as a practitioner in the community association insurance industry. For this designation a practitioner is defined as an individual primarily compensated to consult, advise, and/or provide insurance services for community associations. In addition to the above, the CIRMS designee must also satisfy one of the following: • Have the current responsibility as an insurance practitioner for at least twenty-five community association insurance programs. • Demonstrate significant involvement in the provision of insurance and risk management services to community associations. Knowledge of their practice is another one of the attributes you will find with those who have the CIRMS designation. They are active in CAI and similar organizations and serve
Quorum April, 2019
"CIRMS DESIGNEES MUST PROVIDE REFERENCES FROM BOTH COMMUNITY ASSOCIATIONS AND COMMUNITY ASSOCIATION INDUSTRY PROFESSIONALS AND HAVE A MINIMUM OF FIVE YEARS’ EXPERIENCE AS A PRACTITIONER IN THE COMMUNITY ASSOCIATION INSURANCE INDUSTRY." as national faculty members, speakers and authors on both a national and local basis. They will also be members of national and local CAI committees and boards, and you will find them attending educational opportunities to broaden their knowledge of best practices in community association insurance and risk management. Many CIRMS designees also carry other designations awarded by various professional insurance institutions. All CIRMS are bound to a stringent code of ethics. For community association leaders to have the ability to identify such talented individuals in this discipline is immensely helpful. This is why CAI created the CIRMS designation. You can find CIRMS insurance professionals in the CAI-CV directory or on the national site under Directory of Credentialed Professionals. For more information on the CIRMS designation please visit www.caionline.org. For those of us who are insurance and risk management professionals, having your time, experience, knowledge, and talent recognized by CAI is a great honor. Robert “Bob” A. Travis, CIRMS, CPIA, was the Vice President and National |Regional Marketing Director for Community Association Underwriters (CAU) in Newtown, Pa. Bob had been with CAU for over 24 years and has been providing Insurance and Risk Management services to community associations since 1985. Bob recently retired from CAU and now operates his own consulting firm, Risk Management Matters. He can be reached at RiskManagementMatters@yahoo.com or (570)236-6424. He has been a member of CAI’s national faculty for 21 years. He taught CAI’s M-205 on Insurance and Risk Management at the CAI-CV office in March.
BOARD MEMBER WORKSHOP
“ASK THE ATTORNEY” FRIDAY, MARCH 29, 2019 SHIELDS DATE GARDEN AUDITORIUM
BMW SPONSORS Workshop Sponsor Fiore Racobs & Powers, A PLC Name Tag Sponsor Asphalt MD’s Scholarship Sponsor Cooper Coating, Inc.
Educational Lunch Program & Mini Trade Show
Ask The Attorneys | Friday, March 8, 2019
Quorum April, 2019
CHAPTER EVENTS HOT TOPICS HEATING UP IN THE DESERT • New Transfer Funds Law • Short Term Rentals • DFEH Pitfalls • Smoldering Smoking Issues • Solar System Aftermath
GUEST SPEAKERS CHRISTINA BAINE DEJARDIN, ESQ. Delphi Law Group, LLP
SUSAN HAWKS MCCLINTIC, ESQ. Epsten Grinnell & Howell, APC
LAURIE S. POOLE, ESQ., CCAL Adams|Stirling, PLC
THANKS TO OUR PROGRAM SPONSORS MEMBERSHIP SPONSOR Prendiville Insurance Agency
EXHIBITOR BOOTH SPONSORS AMS Paving Ben’s Asphalt BRS Roofing Conserve LandCare DSI Security Systems EmpireWorks Epsten Grinnell & Howell, APC Flander’s Painting Frazier Pest Control Horizon Lighting NPG Asphalt O’Connell Landscape Maintenance Patio Shoppers, Inc. Prendiville Insurance Agency Roof Asset Management Seacoast Commerce Bank Sherwin-Williams Paints Shetler Security Services Three Phase Electric Tinnelly Law Group United Paving Vintage Associates Vista Paint Corporation Western Pacific Roofing WICR, Inc.
PEN SPONSOR Advanced Reserve Solutions CAI-CV.org
COME MEET BRIAN COHEN AT CAI-CV'S LUNCH PROGRAM ON APRIL 19TH
Are You Covered? By Brian S. Cohen Esq., CPA
A. Cyber Attacks: Time doesn’t stand still and neither do risks to a community association. One of the risks rearing its ugly head is cyber liability. It’s not just Target or Walmart that gets hacked. Attacks on smaller organizations and individuals are near crisis levels. All hackers have the same goal: sabotage an existing electronic process in order to steal confidential information or money.
members, all members, and the community management firm, let alone the obvious data breach situations involving association bank accounts. There is no easy fix but one way an association can limit its exposure is to purchase cyber liability insurance. There are many products on the market, from stand-alone policies that tend to be very comprehensive to endorsements to
"ASK YOUR INSURANCE PROFESSIONAL TO INCLUDE CYBER LIABILITY INSURANCE IN THEIR QUOTE AND MAKE SURE THEY EXPLAIN HOW THE COVERAGE WORKS AND MOST IMPORTANTLY WHAT IS NOT COVERED." Many people still don’t believe they are at risk. Unfortunately that’s just not the case. According to Mike McGuire of the University of Surrey, cyber crime is generating at least $1.5 trillion in revenues every year. Data trading, the illegal sale of confidential data— (credit and debit card information) generates on its own approximately $160 billion annually. Cyber crime pays. High earning cyber criminals can make $166,000+ per month according to McGuire. “Middle Class” cyber criminals can make $75,000+ per month and low earners can make $3,500 per month. It’s no wonder more and more traditional criminal organizations are focusing on cyber crime. This has created an ecosystem of disruptive innovation generating new methods of cyber crime. Many community associations fail to treat cyber crime as a critical risk they need to mitigate. They need to. All electronic communications are subject to attack including between board 24
Quorum April, 2019
the core Property/Liability package. But beware. Some of the coverages offered don’t provide much protection. They are easy to identify. They typically only cost $30 to $50. If the price is too good to be true, the coverage is deficient. Ask your insurance professional to include cyber liability insurance in their quote and make sure they explain how the coverage works and most importantly what is not covered. B. Fidelity Bond Coverage Required for Associations in California: 2019 became the first year that community associations were required to carry a "fidelity bond." A fidelity bond is an insurance policy that covers employee dishonesty (fidelity) plus non-employee theft. It is not the same as D&O insurance. Fidelity coverage protects an association against dishonest acts such as embezzlement committed by an employee. For community associations, the definition of “employee” is broadened to include the board of directors as non-compensated employees of the
association, as well as the community manager and management company. Fidelity coverage also covers computer and funds transfer fraud. This protects against dishonest acts committed by third parties. Unlike a typical local embezzler who would be inclined to steal a little bit at a time to avoid detection, these individuals will try to maximize their theft. They don’t have a connection to an association, are not on the board, and have no emotional connection to the community. Fidelity coverage is not an alternative to cyber liability coverage. Fidelity coverage just protects against the loss of community funds as a result of embezzlement. California Civil Code section 5806 requires that the fidelity coverage must have the following: • coverage limits in an amount equal to or greater than the combined amount of the reserves and total assessments for three months (unless the governing documents call for greater limits); • cover all persons handling funds, including officers, directors, employees, managing agents and the management company, and • include in the policy coverage for "computer and funds transfer fraud" in the same amount or greater (unless the governing documents call for greater limits). You should also verify that your management company carries their own fidelity insurance and that they list your association as an additional insured. Brian S. Cohen is the co-founder and CEO of Arden Insurance Services LLC, one of the top providers of insurance solutions for community associations in the United States. Arden distributes its products through a network of the very best independent insurance brokers that focus exclusively on community associations. It currently operates in Arizona, California, Illinois, Nevada, Oregon, Utah, and Wisconsin.
PLEASE JOIN US CAI-CV Program Lunch & Mini Trade Show FRIDAY, APRIL 19, 2019 – 11:15 REGISTRATION – PALM VALLEY COUNTRY CLUB
$32 MEMBERS, $42 NONMEMBERS & WALK-INS
INSURANCE RISKS HIDING IN THE BUSHES – ARE YOU COVERED?
CYBER SECURITY | FIDELITY BONDS Boards have a fiduciary duty to properly insure their communities against risks. Come learn what must be insured. Hear about new risks and what’s trending in common interest development (CID) insurance. Bring your questions for the Q&A!
$2 FOR EVERY LUNCH GOES TO SUPPORT CAI’S LEGISLATIVE EFFORTS IN SACRAMENTO THROUGH THE CALIFORNIA LEGISLATIVE ACTION COMMITTEE (CLAC) Attorney & CPA Brian Cohen, Esq. Chairman & CEO, Arden Insurance Services, LLC Operating Partner, Altamont Capital Partners Director, Embark, LLC
Includes a fantastic lunch, outstanding education, one continuing education unit for managers, tradeshow with business partners/ professional advisors, career building opportunities, and socializing with peers and industry professionals. Call the CAI-CV office or email firstname.lastname@example.org if you need assistance signing up or would like more information about CAI’s educational programs. More information is available at www.cai-cv.org or at caionline.org.
When: Friday, April 19, 2019, 11:15 a.m. to 1:30 p.m. Where: Palm Valley Country Club 39205 Palm Valley Dr, Palm Desert
Cost: RSVP $32 Members, $42 Nonmembers & Walk-ins
Register online at CAI-CV.ORG CAI-CV.org
Preparing for and Dealing with Disaster By Kelly G. Richardson, Esq., CCAL
n unfortunate reality is that occasionally communities can be confronted with disaster, when earthquake, wildfire, or other calamity can transform a community within a few hours. Planning for the unthinkable can improve the associationâ€™s recovery prospects.
PREPAREDNESS: Enhance communication. Embark upon an aggressive campaign to build email contact points for every association resident or owner. The ability to flash bulletins to owners is critical in emergencies and saves labor and postage and increases communication in normal times. Check the association insurance. Does the association have replacement cost or code upgrade coverage? What is covered? Some years ago an association sustained hundreds of thousands of dollars of landscaping and irrigation equipment destroyed in a major brush fire. Fortunately, their policy covered landscaping and the insurance paid to restore common area hillsides. Does the association have earthquake coverage? Check the deductible and inform members of the amount that will be association responsibility in the event of major seismic damage. A meeting with your broker may reveal gaps or inadequacies in the associationâ€™s insurance protection.
Quorum April, 2019
Create emergency policies and plans. The manager should be empowered to respond to emergencies, and each director should know association policy regarding who makes emergency calls to vendors if the manager is not available. Risk management. Is the association adjacent to any hillsides or other brush areas? When was heavy vegetation last cleared from the association perimeter? Your local fire department or a consultant may provide a risk assessment.
THE EMERGENCY: Immediate Actions. Call first responders. Call management. Issue an update via email and bulletin board, avoiding unsubstantiated reports or anything promoting panic. If evacuation is not required, and if circumstances allow a safe property tour, assess the number and location of affected homes. A board representative should establish a single point of liaison with first responders, to avoid unduly burdening them with multiple points of contact. Control emergency contractors. Contact emergency restoration contractors, but limit them to only what is necessary to prevent further property damage or personal injury and secure the affected properties. Do not allow demolition beyond what is immediately necessary, so that a damage assessment and
scope of repair can be developed by an independent consultant for contractor bids. Security. Some temporary security may be required at vacated or damaged homes, such as boarding up windows, temporary fencing, or security guards. Don’t Rush to Public Adjusters. Major property casualties draw out public adjusters, who represent insureds against their insurance company in damage claim situations. They are not attorneys and must hold a specific state license. They charge a percentage of the insurance proceeds for their services, which percentage can be negotiated. The association’s attorney and a competent construction consultant may be able to provide more expert representation at less cost, so check with association legal counsel first. Emergency assessments. Civil Code Section 5610 allows boards to impose emergency assessments without membership voting. Per Civil Code Section 5615, the assessment will not be due until 30 days after the Notice of Assessment is issued. Keep members informed. Once the HOA has a recovery plan in place to restore the property, share it at a “town hall” meeting and then distribute it to all. Prepared associations can reduce calamity’s impact and rebound faster. Be prepared for the unthinkable and respond responsibly. Kelly G. Richardson, Esq. is a Fellow of the College of Community Association Lawyers and Senior Partner of Richardson Ober PC, a California law firm known for community association advice. Submit potential column questions to Kelly@Richardsonober.com. Past columns at www.HOAHomefront.com. All rights reserved®.
Contractors Lic. # 235717
WESTERN PACIFIC Roofing Corporation
“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
ADVANCED RESERVE SOLUTIONS, INC. ROXI K. BARDWELL, PCAM, CCM Regional Vice President 7 7 - 5 64 B Country Club Drive, Suite 3 1 0 Palm Desert, CA 9 2 2 1 1
C 510.693.1620 • O 760.295.1864 CAI-CV.org
The Risks of Inadequate Homeowners Association Insurance By Sarah Kyriakedes, Esq.
alifornia homeowners associations must carefully In response, the California Legislature passed Civil Code consider whether their insurance coverages provide Section 5805 to protect homeowners from individual liability if adequate protection. The failure to secure the correct form of their HOAs maintained minimum levels of third-party liability insurance could potentially expose directors and the members insurance to cover tort-based (i.e., injury or property damage) to financial and legal consequences. causes of action. In order to avail itself of that protection on Boards of Directors should review their HOA governing behalf of its membership, a HOA with one hundred (100) or documents to understand the type of insurance that must fewer separate interests is required to maintain a liability be lawfully acquired. In general, homeowners associations policy with coverage limits of at least $2,000,000; HOAs with are required to maintain at least three (3) types of insurance more than one hundred separate interests are required to coverage: property damage coverage; liability coverage; and maintain liability policy limits of at least $3,000,000. (Civil Directors and Officers (“D&O”) coverage. Property damage Code §5805.) If those minimum insurance limits are satisfied, policies provide insurance coverage civil litigants are barred from pursuto a first party insured (i.e., the HOA) ing injury or damage causes of action in the event of a covered loss involvagainst individual homeowners. In order to avail itself of that ing HOA property. General liability protection on behalf of its ELIMINATING PERSONAL policies protect HOAs against third membership, a HOA with one LIABILITY FOR DIRECTORS party claims of bodily injury, property hundred (100) or fewer separate damage, personal and advertising The Civil Code and Corporations interests is required to maintain injury. D&O policies protect HOAs Code include liability protections that a liability policy with coverage and directors from negligence and are designed to encourage volunteers limits of at least $2,000,000; breach of fiduciary duty causes of to serve on their respective boards of HOAs with more than one action, among other things. directors. Under Civil Code Section hundred separate interests 5800, directors are not personally MAINTAINING HOA are required to maintain liable in excess of minimum insurINSURANCE CAN PROTECT liability policy limits of at least ance coverage levels if the following INDIVIDUAL HOMEOWNERS requirements are satisfied: $3,000,000. (Civil Code §5805.) FROM PERSONAL LIABILITY • The director’s act or omission Civil Code Section 5805 bars liabilwas discharged while acting in ity claims against individual members if the HOA maintains his or her official capacity as a board member. certain levels of general liability coverage. Prior to the codi• The director’s act or omission was fication of Section 5805, the California Court of Appeal held performed in good faith. a group of homeowners jointly and severally liable for multi• The director’s act or omission was not million-dollar injuries suffered as a result of the homeowners willful, wanton, or grossly negligent. association’s failure to maintain and repair the common • The HOA maintains liability and D&O insurance area. (Ruoff v. Harbor Creek Community Association (1992) 10 coverage to provide director liability protections Cal.App.4th 1624.) In the Ruoff case, the Court held that the and each of those policies carry minimum levels homeowners, as tenants-in-common in the common area, of coverage. If the homeowners association has could not avoid personal liability by delegating their duties to one hundred (100) or fewer separates interests, control and manage the common area property. As a result, that minimum limit on both policies must be at every record homeowner within the association was held least $500,000. The minimum limits of liability responsible for the damages that exceeded the association’s for communities with more than one hundred insurance policy. separate interests must be at least $1,000,000.
Quorum April, 2019
YOUR HOA CAN BE OUR NEXT COVER 2019
"Courts can award punitive
damages to punish and deter culpable Directors for outrageous conduct. (6 Witkin, Summary of Cal. Law (9th ed. 1988) §1327.)"
EXERCISING PRUDENT BUSINESS JUDGMENT IS CRITICAL FOR THE APPLICATION OF HOA INSURANCE Volunteer directors may not be protected from personal liability when there is a gross failure or willful ignorance to uphold their fiduciary duties. Civil Code Section 5800 does not shield board members who act willfully negligent or in bad faith. Courts can award punitive damages to punish and deter culpable directors for outrageous conduct. (6 Witkin, Summary of Cal. Law (9th ed. 1988) §1327.) In that circumstance, the HOA’s insurance policies may not provide insurance protections for directors who are exposed to punitive damage claims because of their bad faith conduct. Indeed, most D&O policies expressly exclude insurance coverage for that type of relief. The exclusion rationale is based upon public policy which provides that the deterrent purpose of a punitive damages award may not be served if the risk of loss is borne by the insurance company instead of the bad acting director. The potential absence of HOA insurance coverage because of a bad faith exclusion should be considered by directors as they make decisions for the benefit of their communities. Evaluating an HOA’s insurance requirements can be a challenging task for Board of Directors and Management professionals. When faced with the possibility of personal liability and costly monetary judgments, California homeowners associations should consult with their insurance and legal professionals on an annual basis to ensure that there are no gaps in coverage and to preserve minimum levels of Association insurance, in accordance with the HOA’s governing documents and California law.
T NO COS
OUR TOERY Y COVE
EV TORY. HAS A S URS! YO TELL US FEATUR ING 8 Palm Royale Cou ntry Club 22 What Every Bus iness Partne Working r Nee with Valley Managemen ds to Know About 24 HOA Homefro t Compan nt – Your ies YOU Mig Meetings ht Be the Are Raucou Problem s?
MUST BE CAI-CV MEMBER IN GOOD STANDING
CONTACT THE CAI-CV OFFICE
Sarah Kyriakedes is an associate attorney at the Tinnelly Law Group. Ms. Kyriakedes focuses on the firm’s litigation and enforcement matters. For the last thirty (30) years, the Tinnelly Law Group has exclusively represented hundreds of HOAs throughout California. Sarah may be reached at (949) 588-0866 or by email at email@example.com. CAI-CV.org
By CAI-CLAC Public Relations Committee BILL SPONSORED BY CAI-CLAC WILL PROTECT COMMUNITY ASSOCIATION RECORDS Senate Bill 434 (Archuleta), jointly sponsored by Community Associations Institute’s California Legislative Action Committee and the California Association of Community Managers will provide protection for community associations when changing management companies. The bill will require managers to turn over association records within thirty days after they are notified that the association will be changing management companies. The bill also makes clear that the records must be provided even if there is a dispute over the termination or over management fees. However, managers won’t be required to turn over proprietary information or to provide documents that are not reasonably available. CAI-CLAC recognizes that the records maintained by a managing agent belong to the association and should be turned over promptly to new management. SB 434 demonstrates CAI’s support of reasonable regulations to protect and promote healthy and vibrant community associations. You can read SB 434 on the California State Legislator’s website. Please check our Legislative Session Hot Bills for constant updates on pending legislation. As the legislative session heats up, we will update our website with draft letters to contact your representative and other key legislators to encourage them to support SB 434.
SB 323 THREATENING PRIVACY IN HOMEOWNER ASSOCIATION ELECTIONS In 2018, the Community Association Institute’s California Legislative Action Committee (CAI-CLAC) fought hard to win the Governor’s veto on a bill that would have threatened homeowners’ privacy and would have made other fundamental changes to the way associations conduct their elections. On February 15, Senator Wieckowski (D – Fremont) re-introduced the bill vetoed by Governor Brown in September 2018. Senate Bill 323 threatens privacy in homeowner association elections.
SB 323 has the following effects: It limits the right of an association’s membership to set qualifications for candidates. It would prevent non-owners and some felons from running for the Board, and would allow associations to disqualify candidates only if they have been owners for less than one year, if a joint owner was on the Board or a candidate, or if they were delinquent in regular assessments and if other conditions were met. It prohibits associations from ever suspending an owner’s right to vote. It requires associations to post the names and assessor’s parcel numbers of all members eligible to vote. It requires associations to post the requirements for running for the Board at least 30 days before the nomination deadline; and to post the list of candidates, deadline for returning ballots, time and place of the annual meeting, all 30 days before ballots were mailed. It allows owners to review and copy the signatures of all other owners on the outside mailing envelopes. As a condition of casting a ballot, homeowners must give up their right to keep their signatures private. It will also require associations to hold an election every four years, without specifying what would be voted on, or whether the election must go forward even without a quorum. SB 323 is supposed to increase homeowners’ participation in association elections. Instead, it will deter owners from voting by requiring them to sacrifice their privacy, and it will deter them for running from the Board by imposing a deadline to run which is months before the election. CAI-CLAC will oppose this bill and will work hard to defeat it through the grass roots efforts that were successful in 2018. You will receive a call to action soon, to contact your representative or other key legislators and urge them to defeat SB 323. Your voice matters! Follow us on CAI-CLAC’s Facebook, Twitter and LinkedIn pages for real-time updates. You can also sign up for our weekly eBlasts at CAICLAC.com. Copyright © 2018 California Legislative Action Committee (CLAC). All rights reserved.
Quorum April, 2019
Welcome Aboard By Susan Browne Rosenberg
Introducing AMOTR – Assistant Manager on the Run By Rhonda Drews, PCAM® – Co-Chair, Education Committee On Friday, March 1st, the CAI-CV Education Committee unveiled its newest series of classes; AMOTR. A program of the Education Committee, AMOTR is geared toward the assistant community association manager or administrative support staff. “A” refers to “assistant” or “administrative support” and “MOTR” is the acronym for “Manager on the Run.” The first AMOTR program was presented by Rhonda Drews, PCAM® and Cardinal Ambrose, PCAM® both of Associa-Desert Resort Management. The presentation focused on the manager and their assistant; specific topics covered were best practices for organization, efficiency, communication, and overcoming challenges. The upcoming series of 2019 AMOTR includes classes held bi-monthly. The next one is scheduled for May 3, 2019, which will introduce the assistant attendees to HOA financials. The July 12, 2019 program will be geared toward professionalism and will help hone in on other soft skills. September 27, 2019, will bring all board meeting requirements to light and finally the November 1, 2019 program will focus on the entire annual meeting processing from beginning to end. Sign up your assistant managers and administrative staff online or by calling the CAI-CV office at 760-341-0559. You do not need to be a CAI member to attend. Attendees will receive one continuing education unit (CEU) for each program that they can eventually use toward their credential.
NFP Property & Casualty Insurance is a leading insurance broker and consultant that provides insurance for condominiums, homeowners associations, golf courses and country clubs. Their brokers work with community managers and association boards alike to find a customized policy that can help their clients rest easier. NFP (formerly 1st Community Insurance Services) is not tied to any one specific Simon Fraser Senior Client Executive insurance carrier, which means they find what works best for each client from a multitude of insurance markets. NFP works with best-in-class insurance companies to locate the right coverage with a competitive price. In 2017 NFP produced gross revenue of over $1 billion dollars, and was ranked as the 4th largest US-based privately owned broker. The Palm Springs office is now open to serve and assist the Coachella Valley community. The NFP Way stands for Nimble, Fantastic Results and Personal. They have offices throughout the United States, Puerto Rico, Canada and the United Kingdom. Here in the Coachella Valley, NFP is also a member of the Rancho Mirage Chamber of Commerce, 29 Palms Chamber of Commerce, Palm Springs Chamber of Commerce, Greater Beaumont Chamber of Commerce, and the Desert Business Association. Simon Fraser is the local contact. When you call the local office, you may also reach Robin Knight and Ernie Santora. Simon is a Certified Insurance Counselor (CIC) and Commercial Lines Coverage Specialist (CLCS). These designations are awarded by the National Alliance for Insurance Education and Research, and the National Underwriter Company respectively. Simon is a dual British-American citizen who grew up in Cardiff, Wales. He has four dogs and two cats, is an avid piano player, and enjoys visiting new places. For more information contact Simon Fraser, Senior Client Executive, 400 S. Farrell Dr., #B170, Palm Springs, CA 92262. His phone number is 760-325-7400 (office) or (760) 288-8903 (cell) or email him at NFP.com or firstname.lastname@example.org. 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 email@example.com. CAI-CV.org
CAI-CV Printing Services CAI Members Receive 40-50% Savings Compared to Copy Shops Call Rodney Bissell at 714-293-3749 for printing + design. Call CAI-CV at 760-341-0559 for printing without professional design.
• Single sheet copies – collated, stapled, hole punched – gloss or flat – black & white or color • Four-page folded brochures – magazine stock – full bleed • Booklets – full bleed – up to 180 pages – gloss or tearproof/waterproof covers • Postcards – heavy card stock • Marketing materials – waterproof wristbands, water bottle hangers, door hangers, coasters • Posters – up to 13 X 19 • Magazines – full bleed – up to 60 pages – heavy gloss • FULL-SERVICE DESIGN AVAILABLE
BILL FITZGERALD PRESIDENT SUNTECHROOF@GMAIL.COM SUNTECHROOFING.NET
CELL PHONE # 760.275.4749 42215 WASHINGTON ST, SUITE A #350 PALM DESERT, CA. 92211 OFFICE # 760.343.0091
CONTRACTORS LIC. #1010435
•Arbor Service •Landscape Design •Landscape & Hardscape Installation •Water Conservation Specialist •Growers of Exotic Palms & Desert Accents
We value and respect your landscaping investment and are dedicated to you and your satisfaction.
Phone: 760- 343-0162 • Fax: 760-343-4804 P.O. BOX 265 Thousand Palms CA 92276 Email: firstname.lastname@example.org
AC NTR O C NO
In Customer Service
Family Owned & Locally Operated
EDUCATED BUSINESS PARTNER
AL • HOA'S COMMERCIAL • RESIDENTI
760-328-6115 68920 Adelina Rd, Cathedral City, CA 92234 FrazierPestControl.com • Lic. # PR5204
ANTS • ROACHES • TERMITES • RODENTS • SPIDERS • BEES/WASPS • PIGEON PROOFING
Quorum April, 2019
CLAC Buck-A-Door Campaign
SAVE THE DATE CAI-CV Calendar Changes The Statewide Legal Forum will be held on Friday, October 18th, 2019, at the Irvine Marriott. Please note the following CAI-CV events for October: Friday, October 4 (for managers) Manager on the Run (MOTR) CAI-CV Classroom, 8:30 a.m. Tuesday, October 8 (for board members) Board Basic Training CAI-CV Classroom, 5:30 p.m.
The California Legislative Action Committee (CLAC) is a volunteer committee of Community Associations Institute (CAI), consisting of homeowners and professionals serving homeowner associations (HOAs). CAI is the largest organization in California dedicated to the monitoring of legislation, educating elected state lawmakers and protecting the interests of those living in community associations. CLAC is working toward legislative solutions that are right for California homeowner associations with the ongoing and generous support of HOA communities across the state. Join CLAC’s efforts by donating one dollar for each householdYES, in your community. I’D LIKE TO SUPPORT CAI-CLAC WITH A PLEDGE! YES, I’D LIKE TO SUPPORT CAI-CLAC WITH A PLEDGE! HOA PLEDGE HOA PLEDGE Number of Doors Number of Doors
Thursday, October 17 (for all members) CAI’s CA CID Law Course Irvine Marriott, 8:00 a.m. – NEW DATE & LOCATION
A Buck a Door or More A Buck a Door or More
PROFESSIONAL’S X PLEDGE Professional Hourly Rate
FLAT RATE PLEDGE
Number of People in Firm
Number of People in Firm
Coachella Valley Channel Islands Greater Inland Empire Coachella Valley
Greater Inland Los Angeles Greater Empire Orange County Regional Greater Los Angeles
Total Pledge Total Pledge
FLAT RATE PLEDGE
San Diego Orange County Regional
San Diego NAME NAME TITLE
ASSOCIATION NAME ASSOCIATION NAME ADDRESS ADDRESS CITY
Thursday, October 17 (for all members) CLAC Fundraiser Irvine Marriott, 5:30 p.m. – NEW
Friday, October 18 (for all members) CAI Statewide Legal Forum Irvine Marriott, 8:30 a.m. – NEW
NAME ON CARD
Tuesday, October 29 (for all members) CAI-CV’s Annual Meeting & Election
California North Bay Area Central Channel Islands California North
Friday, October 25 (for all members) CAI-CV’s Annual Oktoberfest Sunshine Landscape Thousand Palms, 5:30 p.m.
PLEASE LET US KNOW WHICH CAI CHAPTER(S) YOU ARE DONATING TO: PLEASE LET US KNOW WHICH CAI CHAPTER(S) YOU Central ARE DONATING TO: Bay Area
PROFESSIONAL’S PLEDGE Professional Hourly Rate
Friday, October 11 (for all members) Educational Lunch Program & Mini Trade Show, TBD, 11:15 a.m. – NEW DATE
CLAC PLEDGE FORM
METHOD OF PAYMENT - Return this completed form to the address below Check enclosed payable to-CAI-CLAC Credit Card form – Amex Mastercardbelow Discover (circle one) METHOD OF PAYMENT Return this completed to Visa the address Check enclosed payable to CAI-CLAC
Credit Card – Amex
Visa Mastercard Discover (circle one)
NAME ON CARD
BILLING ADDRESS BILLING ADDRESS CITY
CREDIT CARD NUMBER CREDIT CARD NUMBER SECURITY CODE
CAI California Legislative Action Committee (CLAC), is a 501(c)(6) not-for-profit organization. Contributions or gifts to CAI California Legislative Action Committee CAI California Legislative Action Committee (CLAC), is a 501(c)(6) not-for-profit are not deductible for federal income tax purposes. organization. Contributions or gifts to CAI California Legislative Action Committee are not deductible for federal income tax purposes.
888.909.7403 | 916.550.9488 fax | www.caiclac.com 1809 S Street | Suite 101-245 | fax Sacramento, CA 95811 888.909.7403 | 916.550.9488 | www.caiclac.com 1809 S Street | Suite 101-245 | Sacramento, CA 95811
FRIDAY, MARCH 29, 2019 | SHIELDS DATE GARDEN CORKS FOR CLAC WINE TASTING EVENT 2019
Quorum April, 2019
FRIDAY, MARCH 29, 2019 | SHIELDS DATE GARDEN CORKS FOR CLAC WINE TASTING EVENT 2019 THANKS TO OUR SPONSORS CORKS TITLE SPONSOR Patrol Masters CHAMPAGNE RECEPTION SPONSOR EmpireWorks CABERNET SPONSORS BRS Roofing Pacific Western Bank SECURITAS Sunshine Landscape ENTERTAINMENT SPONSOR Roof Asset Management PHOTO SPONSOR Flood Response BORDEAUX SPONSORS Adams Stirling PLC Associa Desert Resort Management Delphi Law Group, LLP Dunn-Edwards Paint Green Bryant & French, LLP Powerful Pest Management WINE GLASS SPONSOR Vantage Point Construction GRAND PRIZE SPONSORS Epsten Grinnell & Howell, APC SECURITAS RIESLING SPONSORS Allied Universal Asphalt MDâ€™s Fiore Racobs & Powers, A PLC Frazier Pest Control, Inc WINE STOPPER SPONSOR DSI Security Services WINE COASTER SPONSOR Allied Universal COCKTAIL NAPKIN SPONSOR AMS Paving SCHOLARSHIP SPONSOR LaBarre/Oksnee Insurance Agency
Turf Conversions – Do It the Right Way
re you considering a turf conversion for your property? It’s typically a great investment that has the potential to increase property values, improve aesthetics and community pride, while also saving resources. “Potential” is the key word in this statement – it’s not a guarantee you will achieve all these benefits. As you drive around the Coachella Valley, you will see many poorly planned turf conversions where large expansions of tan-colored decomposed granite (DG) are dotted with plants plopped randomly at ten-foot intervals. Often these eyesore projects don’t consider plant type, aesthetics or sustainability. We also see many large trees left behind that once thrived from turf irrigation are now showing signs of severe stress due to a lack of water from the new desertscape. The consequences of a poorly implemented conversion are costly. Healthy grass is now replaced by a bland and underwhelming landscape with dying trees. While water is being saved, what will it cost the association in terms of diminished home values? We can all agree that turf conversion is important given our desert environment and California’s propensity for droughts. Additionally, water rates are projected to continue increasing so the combination of conservation and saving money make turf conversion something every community should
Quorum April, 2019
By Randy Mitchell
consider. This is, however, a challenge to both board members and managers. Ensuring that the dollars spent will increase property values, provide sustainability and maintainability can be elusive. Unless you are lucky enough to have a landscape architect on your board, turf conversion projects are typically more successful when you bring in professional advisors to help. Here are some steps that will ensure you maximize the return on your investment. 1. Define a Long-Term Vision – A long-term landscape vision for your community is the most important part of a successful turf conversion. Unfortunately, this is often overlooked. Start with a simple list of where you want the community to be in 15 or more years and then prioritize the list.
Here are some considerations: a) Your vision should be defined in writing and dated so future boards and business partners can refer to the plan for future decisions. The plan will be used as a guide for anyone who comes into the community including homeowners, board members, community managers, and business partners.
MAINTENANCE b) Engage your landscape business partner to help you with this long-term vision. Landscape service providers employ professionals to assist communities with strategic planning, design and implementation. Make sure they have experience working in our unique desert climate. In addition to current landscape projects, planning should focus on future turf conversions and landscape enhancements.
At a minimum, these designs should include a top-down plan view. We suggest that you also request color renderings of what the finished project will look like. This aids all parties involved to conceptualize what is actually being proposed and in most cases will help gather support from homeowners. Many communities experience pushback from residents when the idea of "turf removal" is discussed. Having a visual rendering of what the completed project will look like can help alleviate any uncertainties. c) The plan should clearly define the goals of each There is no reason to try and design your communityâ€™s project. Outline the species of plants and trees that landscape on your own. The cost of a good design is worth the are to be utilized. Define the specific types and investment. However, if cost continues to be a concern, engage outline a color palette for decomposed granite, gravel, your landscape business partner. Landscape maintenance cobble and boulders. contractors may include design State how existing trees services as part of their overall "A concept drawing is also an are going to be watered service contract at no additional excellent tool to visualize your after the turf irrigation charge. Take full advantage of this future finished project." is removed. A concept opportunity. drawing is also an excellent 3. Irrigation is Important â€“ tool to visualize your Many communities experience future finished project. problems because of inadequately Whether the turf conversion built irrigations systems. Because or enhancement is being imple90 percent of your irrigation mented over the course of just a system is underground, problems few months or several years, the are often not apparent until plants goal is to have a cohesive and start dying. Designing and installwell thought out landscape that ing a functioning and sustainable increases the value of your comirrigation system is not simple in munity while being maintainable any way, shape or form. Irrigation and sustainable. requires a professional plan to 2. "Plan" it Out â€“ The landscape ensure that the proper amount of plan goes hand-in-hand with the water gets to trees, shrubs and the long-term vision. It is the executremaining turf areas and makes able document you use to ensure sure that plants that are alike are your vision is implemented. The grouped together and on separate plan will take into consideration valves. When reviewing a plan, the project that you budgeted for check to make sure that water now versus the work that will be emitters match throughout the done later. Always use profesentire system. Emitters should sional advisors for something as never be adjustable and should be complex as an executable landinstalled on the uphill side of the scape plan. A designer or architect plant to make sure that the water has specific training and education in creating sustainable runs towards the plant and not away. Drip irrigation systems landscapes. They will choose plant material that highlights should be also be installed with a pressure regulator and existing features such as fountains and monument signs and filter. Valves should be installed in boxes and tagged with an will provide color during various times of year. They will appropriate label identifying the controller and sequencing also utilize species of trees that align with the elevations of for that valve. While this sounds complicated, it is critically the units or homes in the community. Colors of rock and important when planning for association common areas. You decomposed granite will be chosen to complement existing want your new landscape to thrive. paint colors. Designers are also familiar with designing to Existing trees that are scheduled to remain in areas where specific budgets and can provide worthwhile suggestions on turf is being replaced with desertscape will need more than how to best utilize available dollars. one bubbler on either side of the trunk. Trees that have CAI-CV.org
"You will see many projects where boulders are set down on top of the finish grade as a way to save labor. This will look like a dinosaur egg breeding ground rather than the intended river bed."
matured in a turf area are accustomed to receiving daily water via the overhead spray system. If you want the tree to survive, it will continue to need irrigation throughout its entire drip line. An effective way to preserve trees is to install drip tubing, also referred to as Netafim. The City of Palm Desert maintains an excellent online resource list of Standard Landscape Drawings that provide specifics on proper installation of typical irrigation components frequently used in irrigation systems. Drawings include valve installations, emitters (both tree and shrub), bubblers, drip tubing, irrigation controllers and specific fittings. Several other municipalities in the Valley have similar landscape specifications. Irrigation systems can be complex and often times difficult to monitor. However, having guidelines in place for you and your contractor to follow will result in a better end product. 4. It’s All in the Details – On the surface, planting shrubs and trees seems pretty basic, right? Dig a hole and stick it in the ground. It’s a little more complicated than that. Planting too high or too deep stresses the plant and threatens its longterm health. Emitters should be installed anywhere from 6-10 inches from shrubs and 12-16 inches from new trees. This allows room for growth while still being close enough to allow water to the get to the rootball. Installing boulders, cobble and DG can also be problematic. Boulders should be buried a minimum of one-third of their overall height to provide a natural feel. You will see many projects where boulders are set down on top of the finish grade as a way to save labor. This will look like a dinosaur egg breeding ground rather than the intended river bed. Like boulders, cobble and gravel should not be installed directly onto the finish grade. To achieve an authentic look 38
Quorum April, 2019
that represents our natural surroundings, a subgrade or swale should be excavated so that areas of cobble are flush with the finish grade or functionally act as a way to channel storm water. One of the biggest complaints about DG is that it blows away and doesn’t last. Decomposed granite should be installed a minimum of two inches thick and watered in, and then rolled and compacted. For planning purposes, you’ll need to know that DG has a useful lifespan of only ten years if installed and maintained properly. In conclusion, converting turf to desertscape is worth the trouble but requires an investment of time, planning and seeking out professionals you can trust to advise you. Trust your instincts too as they will usually be correct. If your hearing something that doesn’t quite make sense, ask for an explanation or seek a second opinion from your local municipality or another contractor. Most of CAI’s established business partners who have experience with turf conversions will be happy to help you develop a plan for your community. The best way to investigate landscapers is to ask a lot of questions. You can ask for a list of completed projects and call references. You can also ask to visit the projects yourself to ensure the contractor’s designs align with your community vision. The end result will be a landscape that achieves your long-term vision and maximizes your investment – and home values for your community. Randy Mitchell is the Director of Landscape Maintenance for Conserve LandCare in Thousand Palms. He can be reached at (760) 343-1433 or by email at email@example.com. Visit their website at www.conservelandcare.com.
Delphi Law Group By Susan Browne Rosenberg Delphi Law Group, LLP, was recently founded by four veteran attorneys of the community association industry – Christina Baine DeJardin, James R. McCormick, Jr., CCAL, Kyle E. Lakin and Zachary R. Smith. Delphi Law Group is a full-service law firm focused on serving clients in the field of community association law. The knowledgeable and skilled attorneys of Delphi Law Group have over fifty years of collective experience providing homeowners associations with effective and efficient legal services. Delphi Law Group provides a full range of services, including corporate counsel, governing document interpretation, legal opinions, risk management, assessment collections, document amendments and restatements, enforcement actions, inspector of elections, contract negotiations, rule and policy development, FHA certification, dispute resolution, general litigation, and more. Delphi Law Group’s approach to its practice is simple – provide effective, responsive, and comprehensive legal guidance to community associations. When asked to sum up what differentiates them from other firms, they replied, "We are here when you need us, and we provide straightforward opinions, legal analysis, and recommendations." Delphi Law Group holds a multi-chapter membership in CAI. Members of the firm currently serve on the Programs Committee and Legislative Action Committee for CAI-CV. Delphi’s attorneys are licensed to practice law in the state of California and belong to the State Bar of California, the San Diego Bar Association, and the Desert Bar Association. James R. McCormick, Jr., Esq., CCAL, is one of 150 attorneys granted a fellowship in CAI’s College of Community Association Lawyers (CCAL).
Delphi Law Group currently services associations all over Southern California and has it main office in Carlsbad. Christina Baine DeJardin lives in the beautiful Coachella Valley and will open a new office in the Palm Desert area in the very near future. Christina is married to Douglas DeJardin and has two children, Jack and Jemma. Christina and her family relocated to the desert from San Diego in 2008 and they love it here. Christina is a Southern California native and hails from Long Beach. She completed her undergraduate studies at the University of California, San Diego and went to law school at the University of San Diego School of Law. She loves to read and spend time outdoors with her family. Delphi Law Group, LLP 1901 Camino Vida Roble, Suite 100, Carlsbad, CA 92008 web address: www.DelphiLLP.com 844-4DELPHI (844-433-5744) email address: info@DelphiLLP.com. 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 firstname.lastname@example.org.
HERE email@example.com | (760) 341-0559 CAI-CV.org
One Way to Save: Install a Weather-Based Smart Controller By Katie Evans
program offered by Coachella Valley Water District (CVWD) helps homeowners and HOAs who want to reduce their outdoor water usage by installing new smart irrigation controllers. Most water used in the Coachella Valley is used outdoors and reducing outdoor usage is the best way to meet your monthly water budget. Weather-based irrigation clocks automatically adjust your irrigation system’s run time based on weather data. For instance, during the heavy rains in February, a smart controller would have stopped watering during and after rainfall. In hotter months, a smart controller will increase the length of time the sprinklers run. For eligible homeowners who want to replace their older irrigation clocks, CVWD will install and program a smart irrigation controller at no charge. CVWD also offers rebates to pre-approved HOA customers who install new smart controllers chosen from a list of approved models. CVWD will contribute half the cost of the controller system up to $10,000 per project.
TO QUALIFY, PARTICIPANTS IN BOTH PROGRAMS: • Must be pre-approved • Must be a CVWD customer and property owner of the installation site • Must have an account in good standing with the district • Must have a fully functioning irrigation control system that is run by a working timer/controller Rebates are available on a first-come, first served basis while funding remains. The rebate programs are valid through June 30, 2019. For applications and more information on eligibility, visit www.cvwd.org/conservation or call 760-398-2661, ext. 3562 The Coachella Valley Water District is a public agency governed by a five-member board of directors. The district provides domestic and irrigation water, agricultural drainage, wastewater treatment and reclamation services, regional storm water protection, groundwater management and water conservation. It serves approximately 108,000 residential and business customers across 1,000 square miles, located primarily in Riverside County, but also in portions of Imperial and San Diego counties. Katie Evans is Director of Communications and Conservation for the Coachella Valley Water District. She can be contacted at firstname.lastname@example.org.
Quorum April, 2019
CAI-CV Annual Spring Golf Tournament
G LFING WITH THE ST RS WITH THE ST RS
TOURNAMENT TITLE SPONSOR Diversified Asphalt Products GOLF BALL CANNON SPONSOR Securitas GOLF CART SPONSOR Allied Universal SWAG BAG SPONSOR Flood Response GOLF TOWEL SPONSOR AMS Paving GRAND PRIZE SPONSOR BRS Roofing
FRIDAY, APRIL 26, 2019
TEE AND BALL MARKER SPONSOR AVAILABLE
Desert Princess Palm Springs Championship Golf Course in Cathedral City
HOLE BOOTH SPONSORS Asphalt MD’s Automation Pride Conserve LandCare Diversified Asphalt Products Dunn-Edwards Paint EmpireWorks Frazier Pest Control, Inc NPG Asphalt Roof Asset Management Securitas Sunshine Landscape United Paving Vantage Point Construction Vista Paint Corporation Western Pacific Roofing
7:30 AM SHOTGUN START – REGISTRATION OPENS AT 6:30 AM
28555 Landau Blvd, Cathedral City, CA 92234
Golf Foursome: $600
Golf Individuals: $150 Luncheon Only: $40
GOLF | AMAZING FUN AT EVERY HOLE CONTINENTAL BREAKFAST | LUNCHEON | DOOR PRIZES AUCTION | AWARDS | PHOTOS | GRAND PRIZE GIVEAWAY
FOR ALL CAI-CV MEMBERS – FIRST-TIME GOLFERS WELCOME
GOLF BALL SPONSOR AVAILABLE
“CAI SPRING CUP” TROPHY SPONSOR AVAILABLE FOURSOME PHOTO SPONSOR AVAILABLE BREAKFAST AND LUNCH SPONSORS Adams Stirling PLC Green Bryant & French, LLP Vantage Point Construction WATER SPONSOR Western Pacific Roofing MULLIGAN SPONSOR AVAILABLE GREEN SIGN SPONSORS AMS Paving EmpireWorks Fiore Racobs & Powers, A PLC CLOSEST TO THE PIN - WOMEN Union Bank CLOSEST TO THE PIN - MEN Allied Universal LONGEST DRIVE - WOMEN LaBarre/Oksnee Insurance Agency LONGEST DRIVE - MEN Pacific Western Bank
SIGNUP ONLINE AT WWW.CAI-CV.ORG
SPONSORSHIPS AVAILABLE AT CAI-CV.ORG CAI-CV.org
SCHOLARSHIP EVENT SPONSOR AVAILABLE CLAC SPONSOR AVAILABLE
CREATIVE | BRAND | CONSULTING
(714) 293-3749 BissellDesign.com
Asphalt Concrete Seal Coating Striping ADA Compliance Grinding & Pulverizing
NPGASPHALT.COM So-Cal: 951.940.0200 Desert Division: 760.320.9600 Proud Members of: BIA,BOMA,CAI,IREM,CACM,CREW 42
Quorum April, 2019
FULL SERVICE CONTRACTOR 42-240 Green Way #B •Palm Desert, CA 92211
License # 473996
Your Local Go-To HOA Contractor INSURANCE SERVICES 24hr Emergency Service Mold Remediation Fire & Water Restoration Slab Leak Repairs
• Wood Repair • Concrete Repair • Pool Deck Coatings • Club/Guard House
• Fence • Block Wall • Carport • Drywall & More!!!
Phone: (760) 340-5157 • Fax: (760) 340-2576
CA LIC. #907600 AZ LIC. #286198
SPECIALIZING IN COMMUNITY ASSOCIATION INSURANCE
Matthew Lawton (760) 770-5868 ext.302 CIC, CIRMS Matt@PrendivilleAgency.com
www.HOAville.com 71687 Highway 111, Suite 203, Rancho Mirage, CA 92270
We can help you meet your CVWD "Efficient" budget!
Fernando Fregoso (760) 772-3673
PRESORTED STD US POSTAGE
PAID PALM DESERT, CA PERMIT NO 149
75410 Gerald Ford Drive, Suite 102 Palm Desert, CA 92211
CAI-CV UPCOMING EVENTS
TURQUOISE IS FOR LOCAL EVENTS
SIGN UP FOR LOCAL EVENTS AT CAI-CV.ORG AND FOR CAI NATIONAL EVENTS AT CAIONLINE.ORG
APRIL CAI-CV’s Manager on the Run (MOTR) (for managers) TOPIC: Media Training WHEN: Friday, April 5, 2019, 8:30 a.m. W HERE: CAI-CV Classroom, Palm Desert CAI’s Day at the Capitol (for all members) WHEN: Monday – Tuesday, April 8 – 9, 2019 W HERE: Hyatt Regency Sacramento, State Capitol
CAI-CV’s Educational Lunch Program & Mini Trade Show (for all members) TOPIC: Insurance WHEN: Friday, April 19, 2019, 11:15 a.m. W HERE: Palm Valley Country Club, Palm Desert
CAI-CV’s Educational Lunch Program & Mini Trade Show (for all members) TOPIC: RESERVE STUDIES WHEN: Friday, May 10, 2019, 11:15 a.m. W HERE: Palm Valley Country Club, Palm Desert
CAI-CV’s Annual Spring Golf Tournament (for all members) WHEN: Friday, April 26, 2019 W HERE: Desert Princess Palm Springs
CAI-CV’s Board Basic Training
CAI’s National Conference (for all members) WHEN: Wednesday – Friday, May 15 – 17, 2019 W HERE: Orlando
CAI-CV’s Board Basic Training (for board members)
TOPIC: Emergency Management WHEN: Tuesday, April 9, 2019, 5:30 p.m. W HERE: CAI-CV Classroom, Palm Desert
CAI-CV’s Assistant Manager on the Run (AMOTR) (for assistant managers)
WHEN: Friday, May 3, 2019, 8:30 a.m. to 9:30 a.m. W HERE: CAI-CV Classroom, Palm Desert
CAI’s M-202 Communications (for managers) WHEN: Friday, April 12, 2019 W HERE: Santa Ana
(for board members)
TOPIC: Code of Conduct/Ethics WHEN: Tuesday, May 14, 2019, 5:30 p.m. W HERE: CAI-CV Classroom, Palm Desert
CAI’s M-204 – GOVERNANCE (for managers) WHEN: Thursday – Friday, May 16 – 17, 2019 W HERE: CAI-CV Classroom, Palm Desert
2019 CORPORATE SPONSORS PLATINUM______
AMS Paving Asphalt MD's Associa Desert Resort Management Bissell Design Studio Conserve LandCare Diversified Asphalt Products Fiore Racobs & Powers, A PLC NPG Asphalt Pacific Western Bank Prendiville Insurance Agency Roof Asset Management Sign-A-Rama Sunshine Landscape Vantage Point Construction Western Pacific Roofing
AMS Connect Automation Pride Ben’s Asphalt, Inc. BRS Roofing Delphi Law Group, LLP Epsten Grinnell & Howell, APC Flood Response Frazier Pest Control Green Bryant & French, LLP Horizon Lighting PrimeCo PWLC II Sherwin-Williams Paint Vintage Associates
SILVER________ Advanced Reserve Solutions Albert Management Animal Pest Management Barcode Automation, Inc. C.L. Sigler & Associates Dunn-Edwards Paint EmpireWorks Flanders Painting Lloyd Pest Control Mutual of Omaha O'Connell Landscape Patrol Masters Powerful Pest Management Pro Landscaping, Inc. Richardson | Ober Roseman Law, APC SCT Reserve Consultants Seacoast Commerce Bank Three Phase Electric Tinnelly Law Group
BRONZE______ Adams Stirling, PLC All Counties Fence and Supply Alliance Association Bank A-Rising Builders Artistic Maintenance, Inc Association Reserves Bank of Southern California Brabo & Carlsen, LLP Cartwright Termite & Pest Control Coachella Valley Water District DWI Farley Interlocking Pavingstones First Foundation Bank FirstService Residential Flock Safety Frontier Communications G4S Secure Solutions Guralnick & Gilliland, LLP
Kasdan Lippsmith Weber Turner, LLP LaBarre/Oksnee Insurance Agency Leon's Landscaping & Tree Service Millennium Community Management Painting Unlimited, Inc. PatioShoppers Commercial Furnishings Powerstone Property Management S.B.S. Lien Services SERVPRO of Palm Desert SERVPRO of Palm Springs/Indian Wells Shetler Security Silldorf Law, LLP Suntech Consulting & Roofing The Management Trust Union Bank Homeowners Association Services United Paving Vintage Group Vista Paint Corporation
2019 LEGISLATIVE DAY AT THE CAPITOL Monday-Tuesday, April 8-9, 2019 | Hyatt Regency Sacramento Sign up at www.caiclac.com 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) 341-0559.