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FEATURING 10 How HOA Boards Can Participate in the Legislative Process 16 Important Legislative Updates for 2020 20 2019 Case Law Update 28 The New State of HOA Election Laws 38 Making New Laws in California – The Legislative Process 43 Common Courtesy: How to Promote Civility in Community Associations



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Quorum November, 2019

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Phone: (760) 340-5157 • Fax: (760) 340-2576 CAI-CV.org









JENNIFER JAMES, ESQ., CHAIR Green Bryant & French, LLP RODNEY BISSELL, CO-CHAIR Bissell Design Studios, Inc. GEN WANGLER, ESQ., CCAL, BOARD LIAISON Fiore Racobs & Powers, A PLC KIMBERLY BURNETT DSI Security Services


DIANE CARMONY Coachella Valley Water District


SIERRA CARR, CMCA Associa Desert Resort Management




DEA FRANCK, ESQ. Epsten Grinnell & Howell, APC BRUCE LATTA, CMCA Parc La Quinta HOA MARNE LOGAN, CCAM The Management Trust Desert Division GLENN A. MILLER, CGCS Southwest Landscape & Maintenance, LLC



GRACE PALUCK, CMCA The Management Trust Desert Division


KUMAR S. RAJA, ESQ. Tinnelly Law Group MIKE REY Rey Insurance Services A FARMERS® Insurance Agency CAI-CV


STEVEN SHUEY, PCAM Personalized Property Management


How HOA Boards Can Participate in the Legislative Process By CAI-CV's Legislative Support Committee


Important Legislative Updates for 2020 By Tim Flanagan, Esq.

20 2019 Case Law Update By Kumar S. Raja, Esq.

28 The New State of HOA Election Laws By Steven J. Tinnelly, Esq.

38 Making New Laws in California – The Legislative Process By Louie Brown, Esq.

43 Common Courtesy: How to Promote Civility in Community Associations By Donna DiMaggio Berger, Esq., CCAL 4

Quorum November, 2019


CHRIS SIGLER President, C.L. Sigler & Associates, Inc. JOSH WIDENMANN MRC Smart Technology Solutions A Xerox Company CREATIVE DIRECTOR & GRAPHIC DESIGNER CAI-CV


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



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.............................................23

ASPHALT AMS PAVING................................................................47 ASPHALT MD'S..............................................................5 NPG ASPHALT..............................................................42

ATTORNEYS FIORE RACOBS & POWERS, A PLC..............................17 GREEN BRYANT & FRENCH, LLP....................................8 GURALNICK & GILLILAND, LLP....................................23

BANKING MUTUAL OF OMAHA......................................................5


DESIGN BISSELL DESIGN STUDIOS, INC.....................................3

ELECTIONS THE INSPECTORS OF ELECTION..................................39

GATES & GARAGE DOORS AUTOMATION PRIDE....................................................23


LANDSCAPING CONSERVE LANDSCAPE .............................................35 PRO LANDSCAPING, INC................................................3 PWLC II, INC. LANDCARE MANAGEMENT....................42 WATER RITE - VINTAGE ASSOCIATES, INC..................23


PEST CONTROL CARTWRIGHT TERMITE & PEST CONTROL, INC............8 FRAZIER PEST CONTROL, INC.....................................46 POWERFUL PEST MANAGEMENT................................23

REALTORS PALM SPRINGS REGIONAL ASSOCIATION OF REALTORS..............................................................17


ROOFING BRS ROOFING, INC. .....................................................42 ROOF ASSET MANAGEMENT.......................................46 SUNTECH ROOFING.......................................................3 WESTERN PACIFIC ROOFING.......................................35

SECURITY AMS CONNECT............................................................39
















37 Time Honored

48 2019 Corporate Sponsors

Christopher Cellini, Flood Response By Susan Browne Rosenberg, CIH



14 CAI-CV Awards

7 President’s Message 26 Platinum Spotlight AMS Paving 33 About CAI

CAI-CV's Awards and Monte Carlo Night Friday, January 17, 2019

22 Annual Holiday Open House & Charity Event

Friday, December 6, 2019

24 CAI's Educational Lunch Program & Mini Trade Show

Friday, October 11, 2019

27 CAI's Board Leadership Development Workshop

Friday, December 6, 2019

40 Spooktoberfest

Friday, October 25, 2019

48 Upcoming Chapter Events

Quorum November, 2019

Volunteers – The Heart of CAI By Holly Smith CMCA, AMS

34 Landscape Landscape RFP's

What Association Professionals Need to Know By Glenn A. Miller, CGCS

36 Insurance

Why Your HOA Needs an HOA Specialized Insurance Agent By Mike Rey

44 Maintenance


Dionne Petitpas Three Phase Electric By Grace Paluck, CamEx, CCAM

Are You Getting the Right Quality, Price and Useful Life out of Your Maintenance Projects? By Chris Sigler, B.S.C.E., C.D.T.

DEA FRANCK, ESQ. SECRETARY Epsten Grinnell & Howell, APC CARDINAL AMBROSE, CMCA, AMS, PCAM DIRECTOR Associa Desert Resort Management

CHAPTER NEWS 8 CAI-CV Educated Business Partners 9 CAI-CV New & Renewing Members 31 Welcome Aboard





Cartwright Termite & Pest Control, Inc. RHONDA DREWS, CMCA, AMS, PCAM DIRECTOR RealManage 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 CAL LOCKETT Executive Director clockett@cai-cv.org The materials contained in this publication are designed to provide our members with timely and authoritative information; however, the CAI Coachella Valley Chapter is not engaging in the rendering of legal, accounting or other professional types of services. The Coachella Valley Chapter has not verified and/ or endorsed the contents of these articles or advertising. Readers should not act on the information contained herein without seeking more specific professional advice from legal, accounting or other experts as required.


President’s Message Mike Traidman Mira Vista at Mission Hills HOA


elcome November temperatures! Every year, we can count on November to bring us some of the most beautiful weather available anywhere in the world. While our industry becomes busy this time of year, I hope all our members have time to enjoy the amazing benefits of living in the Coachella Valley. For our snowbird members, welcome back. If you have some spare time on your hands, please contact the CAI-CV office for a list of upcoming events and educational programs and consider volunteering for one of the Chapter’s committees. CAI-CV released its new Advertising and Sponsorship Plan for 2020 last week. I encourage all our management company and business partner members to get a copy and read this important publication. The new design is intended to help CAI-CV sponsors and advertisers maximize their visibility in the Chapter by highlighting the need to give more than money. Along with sponsorships and advertising, the new plan encourages committee involvement, writing for Quorum, teaching CAI-CV courses, attending events, and inviting managers and board members to attend events as guests. We hope to have more than 100 corporate sponsors this year. Corporate sponsors contribute $1,500 or more to Chapter programs. Copies of the new plan are available at the CAI-CV office or online at www.cai-cv.org. We ended October with the Chapter’s annual meeting where election results were announced. On Tuesday, October 29, 2019, all four incumbents were reelected to the CAI-CV Board of Directors and will serve another three years. We are grateful that the Chapter’s membership recognized and endorsed our current leadership. Returning to the Board are Loni Peterson, PCAM (Associa Desert Resort Management), Steven Shuey, PCAM (Personalized Property Management), Louise Stettler (Palm Valley Country Club HOA), and me, Mike Traidman (Mira Vista at Mission Hills HOA). Thank you to all our members who participated in the election. Our thanks to the Oktoberfest Committee for their dedicated and exceptional work for this year’s Spooktoberfest at Sunshine Landscape. They achieved an amazing atmosphere that cleverly blended the traditional German beerfest with Halloween. It was another awesome CAI-CV networking event. The Manager on the Run program on October 4th was a great success thanks to our guest speakers, Mallory Paproth (SCT Reserve Consultants) and Steven Shuey, PCAM (Personalized Property Management). On October 8th, we held another Board Member Workshop. A special thanks to our guest speaker, Christina Baine DeJardin, Esq. (Delphi Law Group, LLP) for an outstanding presentation on management contracts. Our October lunch program on October 11th with guest speaker, Rob Felix, RS, PCAM (Felix Reserve Group) was a huge success. Rob talked about servant leadership – a great reminder to all of our members who serve our communities. CAI’s Statewide Legal Forum took place at the Newport Beach Marriott

on October 18th and provided our members with a day of outstanding education. Thanks to all our members who attended and to our business partners who offered their expertise as speakers. On November 1st, we are hosting an Assistant Manager on the Run program that will focus on understanding annual meetings. The class will be taught by Rhonda Drews, PCAM (RealManage) and Steven Shuey, PCAM (Personalized Property Management). Our November 12th Board Member Workshop will take place at 5:30 p.m. at the CAI-CV office and will cover the topic of running efficient board meetings. Our guest speaker will be Ramona Acosta, PCAM (Tinnelly Law Group, APC). Sign up soon for our Annual Legislative Update that will take place at Palm Valley Country Club on Friday, November 15th, at 11:15 a.m. This is our largest educational lunch program and mini trade show of the year. CLAC lobbyist, Louie Brown, Esq. (Kahn Soares & Conway, LLP) and Adrian Adams, Esq. (Adams Stirling, PLC) will be our guest speakers. This is an important meeting for all our members to attend where new laws, regulations and case law will be discussed. If you cannot attend, consider sending someone to take notes for you! CAI-CV will host CAI’s M-100 on November 21st-23rd at the CAI-CV classroom. The M-100 – Essentials of Community Management is one of two courses required for managers to be able to say they are “certified” under California law. It is also a prerequisite for CAMICB’s (CAI’s) CMCA (Certified Manager of Community Associations) designation. Board members and business partners interested in advanced education about CIDs are welcome and encouraged to take the M-100. Sign up at caionline.com. We are excited to let you know that we have added another Educational Program & Mini Trade Show in December. Following the recent earthquakes and the local swarming activity here in the desert, the Programs Committee scheduled a NEW program on earthquake preparedness to help CAI-CV members get ready for the inevitable quake along the San Andreas Fault. This program will be held at Palm Valley Country Club on Friday, December 13th, from 11:15 a.m. to 1:30 p.m. Registrations are available online now at www.cai-cv.org. For our homeowner leaders, CAI’s day-long certificate course, the Board Leadership Development Workshop, will be held at Woodhaven Country Club on Friday, December 6th. The Chapter’s Holiday Open House, a free event for all members, will take place also on December 6th at Woodhaven, beginning at 5:30 p.m. Members attending the Holiday Open House are encouraged to bring a new, unwrapped gift for a child age 3-16 for the Narrow Door’s Christmas Store. Make sure to mark your calendars for our Annual Awards and Monte Carlo Night – ATLANTIS – that will take place at the Omni Rancho Las Palmas Resort & Spa on Friday, January 17, 2020. Tickets are available online now. We are looking forward to seeing you soon at CAI-CV events.

Mike Traidman

Mike Traidman, Mira Vista at Mission Hills HOA







Choose Educated Business Partners


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


| 760.565.5889

Micha Ballesteros, Cartwright Termite & Pest Control, Inc. 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, PatioShoppers 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 Amanda Gray, O'Connell Landscape Maintenance 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 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. 8

Quorum November, 2019

CAI-CV ANNUAL LEGISLATIVE UPDATE Educational Lunch Program & Mini Trade Show Friday, November 15, 2019 Palm Valley Country Club, 39205 Palm Valley Dr, Palm Desert 11:15 a.m. Registration


Louie Brown, Jr., Esq. CLAC Lobbyist Kahn Soares & Conway, LLP

Adrian Adams, Esq. Adams Stirling, PLC

COME LEARN ABOUT: • New California Laws • New Case Law • New Regulations • New Rules that impact Managers • New Rules that impact Boards of Directors and CID Communities


Members: $32 Nonmembers: $42

Seating is Limited

CAI-CV NEW & RENEWING MEMBERS NEW NATIONAL CORPORATE BUSINESS PARTNERS BANK OZK Jeffrey Ulm (305) 733-4084 jeffreyulm@gmail.com NEW BUSINESS PARTNERS GOLDEN ALLIANCE INSURANCE AGENCY, INC. Brian Berce brian@berceinsurance.com (818) 584-8044 STATEWIDE SERVICES, INC. Allison Rimada (909) 292-3461 allison@statewideinc.net RENEWING BUSINESS PARTNERS COMMUNITY ASSOCIATION FINANCIAL SERVICES, LLC Doug Bothe (760) 323-7475 doug@cafshoa.com CONSERVE LANDCARE Teri Gonzalez (760) 343-1433 teri@conservelandcare.com DUNN-EDWARDS CORPORATION Bridget Nigh (760) 972-6830 Bridget.nigh@dunnedwards.com FENTON, GRANT, MAYFIELD, KANEDA & LITT, LLP Kathryn Krupp (949) 435-3834 kkrupp@fentongrant.com FLANDERS PAINTING Gary Flanders (760) 341-4345 gary@flanderspainting.com MARTIN SWEEPING/PRESSURE WASHING Jasmine Garrison (760) 200-9510 jasmine@martinsweeping.com PAINTING UNLIMITED, INC. Jackie Fromdahl (714) 380-9796 jackie@paintingunlimited-inc.com REY INSURANCE SERVICES, INC. Mike Rey (949) 487-9661 mike@reyinsuranceservices.com SCT RESERVE CONSULTANTS, INC. Michael Graves (951) 296-3520 Mike.g@sctreserve.com NEW MANAGER MEMBERSHIPS ASSOCIA DESERT RESORT MANAGEMENT Loreanna Flores (760) 346-1161 Loreanna.flores@associa.us

Gretchen Redewill (760) 420-0535 gredewill@associa.us Meranda Valencia (760) 346-1161 Meranda.valencia@associa.us REALMANAGE Sandra Vela-Mora (210) 882-2212 Sandra.velamora@realmanage.com RENEWING MANAGER MEMBERSHIPS ASSOCIA DESERT RESORT MANAGEMENT Barbara Dugan (760) 346-1161 bdugan@drminternet.com Michelle Espinoza (760) 324-1873 mespinoza@drminternet.com Danielle Lampreda (408) 483-6409 dlampreda@drminternet.com ASSOCIA-PCM Clint Warrell (949) 465-2280 Clint.warrell@associa.us AVAIL PROPERTY MANAGEMENT Nancy Holt (760) 771-9546 Nancy@availhoa.com CATHEDRAL SPRINGS HOMEOWNERS ASSOCIATION Shane Petrik Shanep99@gmail.com FIRSTSERVICE RESIDENTIAL Daniel Farrar (760) 834-2487 Daniel.farrar@fsresidential.com MILLENNIUM COMMUNITY MANAGEMENT, LLC Maria Fierro (760) 834-8948 maria@mcmiskey.com POWERSTONE PROPERTY MANAGEMENT Edan Lopez mlopez@powerstonepm.com RIVIERA COMMUNITY CLUB, INC. Bill Palmer (253) 509-2390 bpalmer@riviera-club.org SIERRA DAWN ESTATES HOMEOWNERS ASSOCIATION Daniel Goodrich (951) 925-6502 dan@sierradawnestateshoa.com VINTAGE GROUP Rosanna Cardenas (760) 859-5067 rosanna@vintagegroupre.com



WHITESTAR MANAGEMENT Matthew Rittenhouse (760) 773-0123 matt@whitestarmgmt.com NEW VOLUNTEER LEADERS ALIANTE INDIO, INC. Maria Jaimes James Kreizinger Nick Lanning Jeanne Lawson John Wills BANNING ESTATES HOMEOWNERS ASSOCIATION Lillian Antista Timothy Antista Christopher Ellis John Fitch Vonnie Housner LOS LAGOS HOMEOWNERS ASSOCIATION Ilyana Turcott SUMMERSET SPRINGS HOMEOWNERS ASSOCIATION George Ramos Jan Terzian SUN CITY PALM DESERT COMMUNITY ASSOCIATION Rick Cech Randy Dugger Jo Mochulski Jim Roberts RENEWING VOLUNTEER LEADERS HIGHLAND SPRINGS COUNTRY CLUB HOMEOWNERS ASSOCIATION Patricia Aspan Linda Bonnie Lorraine Boyd Bruce Byers Ron Hoover Andrea Lawrence Rosemarie Peterson Ed Schula Karen Warren Rhea Weber MONTAGE AT MISSION HILLS HOMEOWNERS ASSOCIATION Curt Beyer SUMMERSET SPRINGS HOMEOWNERS ASSOCIATION Krista Burrell Bill Noren Paul Pope Ingela Sidhu Gary Lee Smith SUN CITY PALM DESERT COMMUNITY ASSOCIATION Scott Erickson Dennis Golob Frank Melone Sue Rogoff WATERCOLORS AT LA QUINTA HOMEOWNERS ASSOCIATION Joyce Brown Robert High Alan Kummerle James Lewis Christopher Morgan





How HOA Boards Can Participate in the Legislative Process ABOUT CLAC


Each year, the California Legislature proposes dozens of new laws that directly impact homeowners associations (HOAs). Legislation that is signed into law may immediately change the way boards conduct HOA business and may impose fines for noncompliance. The Community Associations Institute (CAI) helps associations stay informed about HOA legislation.





CAI’s California Legislative Action Committee (CLAC) represents HOAs in Sacramento by advocating on their behalf to protect associations from damaging legislation and to promote proactive legislation. CLAC is made up of members from the Community Associations Institute like you. As a member of CAI, you are automatically a member of CLAC. CLAC is directly supported by HOAs through the Buck-A-Door campaign, where HOAs give a dollar per household to CLAC annually.


Quorum November, 2019


Add CLAC financial support to your board agenda. This article will help make the case for your support. CLAC asks each HOA to donate $1 per door annually. CLAC is asking HOAs to make this annual donation part of their annual operating budget.

Customize the board resolution on page 12 for your specific association and add it to your board packet for the board’s consideration. An electronic version of the resolution is available on the CAI-CV website at www.cai-cv.org.

STEP THREE Make a motion to approve the enclosed Board Resolution and begin discussion. If you need additional information, please contact the CAI-CV office at 760-341-0559 or go to the CLAC website at www. caiclac.com. After discussion, call for a vote.





When approved, ask your treasurer or manager to prepare and send a check directly to CLAC. Make the check payable to CAI-CLAC. The mailing address is 1809 S Street, Suite 101-245, Sacramento, CA 95811. IMPORTANT: Please indicate CAI-CV in the memo line so our local chapter is aware of your donation.

CAI is grateful to all HOAs who participate in funding our advocacy efforts in Sacramento. CAI-CV will publish your association’s name in Quorum Magazine and recognize you at our annual Legislative Update on Friday, November 15, 2019.


12 REASONS Why You Should Donate to CLAC CAI’s California Legislative Action Committee (CLAC) is a nonprofit educational organization dedicated to monitoring and influencing legislation that affects community associations in California. CLAC is proactive in introducing and advocating for legislation that is beneficial to homeowners associations (HOAs) and actively opposes legislation that may have an adverse impact on HOAs. CLAC has influenced legislation affecting many aspects of the Davis-Stirling Act, including covenant enforcement, elections, board meetings, assessment collection, electronic voting and resale disclosure. 1

Your donation gives your community a voice. CLAC’s legislative advocacy efforts are entirely dependent upon the support, opinions and experience of industry professionals and homeowner leaders. CLAC serves the interests of approximately 10,000,000 people who live in and work with HOAs in the state of California. CLAC communicates with legislators and other elected and appointed officials about HOA concerns through letters, phone calls and personal visits.





CLAC is not a Political Action Committee (PAC) and does not give money to legislators or their campaigns.

IMPORTANT REASONS WHY YOU SHOULD DONATE TO CLAC. 10 Donations received are used for

legislative advocacy, and may include printing and mailing expenses, lobbyist fees, and administrative services. 11 Senate and Assembly committees

ask CLAC for input as HOA legislation is proposed and debated. CLAC is also contacted by the Governor’s Office for input about HOA legislation before it is vetoed or signed into law.

CLAC organizes “grassroots” advocacy efforts that include letters, emails and phone communications from HOA residents to elected officials on important HOA-related issues and proposed laws.

12 CLAC has become the recognized

CLAC exercises members’ constitutional right to participate in the political process. CLAC builds important relationships with government officials and develops a network of peers that helps protect HOA home values.

CLAC meets regularly with lawmakers in their district and Sacramento offices to help advance HOA issues. CLAC educates lawmakers, legislative and executive staff, and other organizations. CLAC also testifies before legislative bodies. CLAC holds an annual Legislative Day at the Capitol in Sacramento where CAI members are invited to meet with legislators and advocate on important HOA issues being considered.

CLAC provides immediate action alerts and input on bills that affect HOAs. Legislators rely on CLAC input on HOA issues. HOAs rely on CLAC’s input on breaking issues and its ability to effectively influence the formulation and outcome of public policy. CAI members have access to timely information on bills related to HOAs at www.caiclac.com.

CLAC is dedicated to monitoring and influencing legislation that impacts HOAs in California. CLAC researches and reviews proposed legislation and takes positions on bills affecting HOAs.





Giving is easy and can be done online at www.caiclac.com or by filling out and returning the BuckA-Door donation form on page 13.


It is legal for HOAs to donate money from assessments to CLAC. The board may spend community funds on protecting the association and its owners by supporting constructive state legislation and opposing offensive legislation.


resource for providing accurate, timely and influential input to California legislators. CLAC employs a fulltime contract lobbyist in Sacramento. The CLAC representatives that determine industry positions on proposed legislation include representatives from the three major CAI membership categories: Homeowner Leaders (homeowners, HOA board members); Business Partners (attorneys, developers, reserve analysts, contractors, accountants, insurance representatives, and others) and Community Managers (managers and management companies). Each of the eight California chapters provides two delegates and one liaison to CLAC. If you are interested in serving on CLAC, contact the CAI-CV office.





Community Association Board Resolution for CAI-CLAC Contribution Whereas, The Association (hereafter referenced as the “Association”) board serves in the best interests of all owners in the community; and Whereas, The Association directors have the fiduciary responsibility to manage the assets of the Association according to California law, established business practices and principles, and pursuant to competent, ethical and positive community governance; and Whereas, Community Associations Institute (CAI) is the leading advocate for common-interest communities before state and federal legislative and regulatory bodies; and Whereas, CAI's California Legislative Action Committee (CLAC) represents the interests of community associations in California, sponsors legislation which benefits community associations and their members, and disseminates information to California community associations about legislative issues; and Whereas, Current and future Association residents benefit directly from CLAC's advocacy efforts; and Whereas, CLAC's efforts are funded solely through contributions from CAI members and fundraising efforts by CAI chapters in California; and Whereas, contributing to the CAI-CLAC will not affect the Association’s nonprofit tax status; and Therefore be it Resolved, That the Association invest in a full or partial board membership package; and That it is the policy of the Association that the Association make an annual contribution to CLAC for , in the amount of $ , that is, ($1 for each (unit/lot) in the Association, coded to general administration; and That the Association strongly encourages its manager and directors to take advantage of the information provided by CLAC regarding pending and enacted state legislation that allows them to keep abreast of the rights and responsibilities of community associations under California law. SO RESOLVED BY THE BOARD OF DIRECTORS on this, the of in the year .


Name Secretary of the Association


Quorum November, 2019

Our thanks to the law firm of Richardson | Ober for preparing this sample resolution. An electronic version is available online at www.cai-cv.org.


CLAC Buck-A-Door Campaign HOA PLEDGE __________________ X $__________________ = $_________________

Number of Doors


Total Pledge

PLEASE LET US KNOW YOUR CAI CHAPTER Bay Area Central California North

Channel Islands Coachella Valley

Greater Inland Empire Greater Los Angeles

Orange County Regional San Diego

__________________________________________________________________________________________________ NAME

__________________________________________________________________________________________________ TITLE

__________________________________________________________________________________________________ ASSOCIATION NAME

__________________________________________________________________________________________________ ADDRESS

__________________________________________________________________________________________________ CITY


__________________________________________________________________________________________________ PHONE E-MAIL

METHOD OF PAYMENT – RETURN THIS COMPLETED FORM TO THE ADDRESS BELOW Check enclosed payable to CAI-CLAC Credit Card – Amex Visa Mastercard Discover (circle one) __________________________________________________________________________________________________ NAME ON CARD

__________________________________________________________________________________________________ BILLING ADDRESS

__________________________________________________________________________________________________ CITY


__________________________________________________________________________________________________ CREDIT CARD NUMBER



__________________________________________________________________________________________________ SIGNATURE DATE

CAI California Legislative Action Committee (CLAC), is a 501(C)_(6) not-for-profit organization. Contributions or gifts to CAI California Legislative Action Committee are not deductible for federal income tax purposes.





Atlantis an Evening Under the Sea CAI-CV's Awards and Monte Carlo Night Friday, January 17, 2020, 5:30 PM Omni Rancho Las Palmas Resort & Spa, Rancho Mirage Reserve Your Tickets Now at



Quorum November, 2019




R 2019






(760) 341-0559









10 Summ erset Sp Condominiu rings ms Assoc 18 Befor iation e Amendin g CC&Rs Avoid “Re ady, Fire, Aim!” 32 Palm Springs Vil las II Homeow ners vs. Erna Par Association th






Same speakers and topics SPEAKER: Warren Miller, President Arbor Tech Services WHERE: Palm Springs Pavilion Community Room at the TOPIC: A tutorial on desert trees… Palm Springs Leisure Center what you need to know. 402 S. Pavilion Way, Palm Springs SPEAKER: Matt Lawton, CIC, CIRMS – NEW LOCATION Prendiville Insurance Agency WHEN: Wednesday, November 20, 2019 TOPIC: Earthquake insurance and what 10:00 AM – 12:00 PM is new with HOA insurance? COST: Free WHERE: Cathedral City Library NEW LOCATION 33520 Date Palm Drive, Cathedral City WHEN: Thursday, November 21, 2019 10:00 AM – 12:00 PM Desert Cities HOA Council COST: Free CAI-CV.org





Important Legislative Updates for 2020 By Tim Flanagan, Esq.



SB 326: the addition of Civil Code Section 5551

his new law establishes criteria for inspection and investigation of exterior load-bearing components of buildings in common interest developments (“CIDs”) to probe for possible structural safety-related issues. Although inspections are not required until January 1, 2025, this new section of the Civil Code will immediately affect how CIDs approach inspections of components and will increase exposure to liability to CIDs if they fail to act with due care. As you may recall, a balcony inspection bill was passed last year for all buildings with three or more multifamily dwelling units—condos and apartments. Condos were ultimately “carved out” of the bill before passage. SB 326 is the new version of this bill written specifically to address condos. The goal of these balcony inspection bills is the same, they both require that balconies and other exterior elevated load bearing components be inspected by professionals regularly. However, the inspection requirements are different. The details of this new “balcony bill” are discussed below. SB 326 (now Civil Code Section 5551), requires that a statistically significant number of balconies and other exterior elevated components that the Association has repair and maintenance responsibility for must be visually inspected by a licensed civil or structural engineer or architect. This new law applies to CIDs with three or more units. For buildings now in existence, the first inspections must be completed by January 1, 2025. To have a better understanding of this, the bolded phrases are discussed in more detail below: Balconies and other exterior components Balconies and other exterior components are defined as load bearing components that extend beyond the exterior walls of the building, are over six feet above ground level,


Quorum November, 2019

are designed for human occupancy/use, and include: decks, balconies, stairways, walkways, and railings. Visual inspection The visual inspection performed by a licensed structural engineer or architect requires much more than just having one professional walk around the building(s) and look to see if the balconies or other exterior components appear to be structurally unsound. Under this law, a visual inspection means that the load bearing component itself needs to be inspected. Often, a load bearing component may be covered by a soffit, stucco or other building materials and inspection of these components may require techniques or equipment that allow for a “visual inspection” underneath the covering. This inspection may be accomplished through the use of moisture meters, borescopes, or infrared technology. And depending on the outcome of these inspections, even more intrusive inspections including destructive testing may be necessary to determine the safety of a component. Thus, the “visual inspection” in this new law is nothing like the visual inspection performed by a reserve specialist. Statistically significant number Technically, a statistically significant number is “a sufficient number of units inspected to provide 95 percent confidence that the results from the sample are reflective of the whole, with a margin of error of no greater than plus or minus 5 percent.” Unfortunately, and unlike last year’s bill, this is not an objective standard, and it leaves the determination of the number of components that need to be inspected up to the person performing the inspections, whose professional reputation and license may be affected if they inspect too few.

Questions you may have: • When do we have to start these inspections? Although the law does not require that the first inspection is completed until January 1, 2025, implementing this inspection protocol will take some pre-planning and budgeting to ensure that the Association has the funds necessary to have the inspections performed and complete any necessary repairs. • How much will this cost? There is no easy answer to this question, it will depend not only on the age and condition of the building(s), but also on the number of different samples required and the determinations made by the structural engineer or architect the Association retains to perform the inspections.

Association action: 1. START NOW! 2. Find a licensed civil or structural engineer or architect to perform an initial, “informal” inspection to identify issues that may need to be addressed before January 1, 2025 to give the Association a preliminary indication of what the first inspection under this statute will require.


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3. Incorporate the inspection information obtained from the inspector into the Association’s reserve study.

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

4. Build reserves as necessary to fund both the inspections and the repairs and/or replacement of load bearing components identified by the inspections. CAI-CV.org





5. During the first required inspection that must be completed by January 1, 2025, the inspector must do the following: a. Generate a random list of the locations of each type of exterior elevated element (“element”) that will be used for the first inspection and all future inspections. b. Perform a “visual inspection” of a statistically significant sample, which may include the use of moisture meters, borescopes, or infrared technology, to determine if the components are in a generally safe condition. The samples should be sufficient to ensure that the results of the inspection reflect the whole. c. If the waterproofing system of an element has been compromised, determine if further inspection is necessary. d. Issue a written report of specific findings after the inspection has been completed. 6. Incorporate information from the inspector’s report as to the condition and life of the components into the Association’s reserve study. 7. Immediately address any immediate threats to health and safety identified by the inspector. These inspections must be repeated every nine years, and reports shall be maintained by the Association for two inspection cycles. For those new buildings that have applied for building permits after January 1, 2020, the first inspection shall occur within six years after the certificate of occupancy is issued.


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SB 326 Anti-Branches (Requirements before filing construction defect litigation - the addition of Civil Code Section 5986, and an amendment to Civil Code Section 6150.)

The “anti-Branches” portion of SB 326 is very positive for Associations. It adds Civil Code Section 5986 and amends Civil Code Section 6150. Branches is the commonly used name for a recent case in California that enforced “poison pill” provisions in an Association’s governing documents. These provisions made it extremely difficult for an Association to file a construction defect lawsuit. These new sections of the Civil Code nullify provisions in governing documents that impose preconditions or limitations on a board’s authority to commence legal action against a declarant, developer, or builder of a common interest development. However, membership notice of a meeting regarding the potential of filing a construction defect lawsuit is required within thirty days before filing a lawsuit. These Civil Code sections are retroactive, so they are effective against these “poison pill” provisions in governing documents recorded before January 1, 2020. And if the Association cannot fulfill the notice requirement before filing a lawsuit due to statute of limitations issues, the notice may be given within thirty days after the lawsuit has been filed.

Association action: Review the Association’s governing documents for provisions regarding necessary actions before filing a lawsuit. If the Association is considering filing a construction defect lawsuit, ensure that the membership notice and meeting requirements of Civil Code Sections 5986 and 6150 are followed and notice is given to membership promptly at least thirty days before filing the lawsuit. If there are statute of limitations issues that do not allow the Association to give thirty days’ notice to members, ensure this notice is given within thirty days after the lawsuit is filed.




These new sections of the Civil Code prohibit Association governing documents from prohibiting the display of religious items on the entry door or entry door frame of a member’s separate interest. These religious items are items that the member desires to display due to “sincerely held religious beliefs” and are subject to certain requirements. The religious displays cannot: (1) threaten public health or safety; (2) hinder the opening or closing of an entry door; (3) violate federal, state, or local law; (4) contain graphics, language or any display that is obscene or otherwise illegal; or (5) be larger than 36 by 12 square inches or exceed the size of the door. And the Association may temporarily require that a member removes the religious display if the Association is performing maintenance, repair, or replacement of the doorframe or entry door. The Association shall provide individual notice to the member if temporary removal of the display is necessary.

This addition to the Civil Code applies to planned unit developments (“PUDs”) and makes those provisions in governing documents that prohibit or unreasonably restrict the construction or use of accessory dwelling units or junior accessory dwelling units void and unenforceable on lots zoned for single-family residential use. Accessory dwelling units may be attached or detached residential dwelling units on the same parcel where the single-family dwelling unit is situated. Junior accessory dwelling units are defined as units that are not over 500 square feet in size and are contained entirely within an existing single-family structure. Reasonable restrictions that do not unreasonably increase the cost of construction or effectively prohibit construction are allowed.

SB 652: the addition of Civil Code Sections 1940.45 and 4706

Association action: Establish new rules regarding the display of religious items on the entry doors or frames of separate interests.

AB 670: the addition of Civil Code Section 4751

Association action: Work with your legal counsel to determine whether any local ordinances have been enacted regarding the creation of accessory dwelling units or junior accessory dwelling units in your area. If regulations have been enacted to permit these dwelling units in areas zoned to allow single-family or multifamily use, establish new rules or architectural guidelines regarding constructing these units within your community. Tim Flanagan is a Partner with Berding Weil, LLP. He represents community associations as corporate counsel in Coachella Valley, Temecula and San Diego. He can be reached at 619-398-3344 or by email at tflanagan@berdingweil.com. CAI-CV.org




FEATURE There are numerous cases currently in the courts that will likely impact how HOAs conduct their business. The Quorum Committee will continue to report on these cases as they are completed. In the meantime, the following two 2019 cases provide some interesting findings. Please rely on your association’s counsel any time you are presented with issues that are ambiguous or that are not clearly defined by current law or your governing documents.

2019 Case Law Update By Kumar S. Raja, Esq.


n Harbour Island Condominium Owners Association, Inc. v. Alexander (2019), the Court of Appeals rendered an unpublished opinion which could provide some clarity regarding a tenant’s right to attend board meetings and a ban on noxious activities within the community. In general, unpublished opinions do not set precedent; under California law, they must not be cited or relied on by a court or a party in any other action (California Rules of Court Rule 8.1115). The Association (“HOA”) sought a restraining order against two tenants and their landlord to abate the tenants’ noxious behavior. The HOA relied on the CC&R provision which stated that residents cannot disturb the neighborhood or occupants of a neighboring property or create a nuisance.

Neighboring residents made several complaints to the HOA about the tenants’ excessive and purposeful noise: the tenants consistently stomped on their floors and slammed their doors. In addition to the noise complaints, tenants permitted their dog to urinate in the Common Area, despite the posted “No Dogs” signs. Lastly, the tenants engaged in aggressive behavior against the Board of Directors in an apparent attempt to intimidate Board Members. The trial court granted the preliminary injunction, ordering the tenants and their landlord to install throw rugs throughout the unit and a sound-muffling device on the doors; to cease 20

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"The appellate court interpreted the view protection provision of the CC&Rs to mean that all Homeowners were prohibited from building new structures that detracted from the views of other Homeowners, and not that the Homeowners were prohibited from altering existing structures. The term “structure” was interpreted to mean outbuildings, not primary residences."

photographing Board Members; and to prevent their dog from urinating on the Common Area. The trial court ruled in favor of the HOA because the tenants’ noxious behavior unfairly oppressed the rest of the community, while the ordered corrective measures were minimally oppressive to the tenants. The Court of Appeals upheld the trial court’s decision. The Court broadly interpreted that provision to encompass the exclusion of dogs from the Common Area for health and safety reasons, and held that the nuisance provision bans acoustic nuisances that interfere with a neighbor’s right to quiet enjoyment. The Court of Appeals disagreed with the tenants that their due process rights had been violated since they were not permitted to challenge the violation notices at hearings. The Court held that only Owners with vested property rights are Members of the HOA. As such, only Members may participate in HOA meetings. The Harbour Island case, albeit unpublished, highlights the broad reach of nuisance provisions in CC&Rs and serves as a reminder that Owners, not tenants, have the right to attend and participate in HOA meetings. In Eisen v. Tavangarian (2019) 36 Cal.App.5th 626, the California Court of Appeal considered a view protection dispute between neighbors. The Plaintiff Homeowners sued Defendant Homeowners and alleged that Defendants’ remodel activities violated several provisions of the HOA’s CC&Rs. Among other provisions, Plaintiffs relied upon the CC&R restriction which restricted “structures” from being erected that could potentially obstruct the view from another lot.

The trial court agreed that the Defendant violated the CC&Rs and ordered the Defendants to remove many of their architectural improvements, which detracted from the Plaintiffs’ view. The trial court ordered that the Defendants pay the Plaintiffs in the amount of $39,000.00 as interim damages for their view loss. The appellate court disagreed and overruled a substantial portion of the trial court’s judgment. The appellate court interpreted the view protection provision of the CC&Rs to mean that all Homeowners were prohibited from building new structures that detracted from the views of other Homeowners, and not that the Homeowners were prohibited from altering existing structures. The term “structure” was interpreted to mean outbuildings, not primary residences. As a result, the Defendants were permitted to maintain their home as remodeled with the exception of some hedges that needed to be trimmed. This case demonstrates how different interpretations of the same provisions of the CC&Rs can vary greatly and produce drastically different results. For this reason, HOAs should consult with their legal counsel when interpreting and enforcing ambiguous CC&R restrictions. Kumar S. Raja, Esq. is a senior litigator with the Tinnelly Law Group. Mr. Raja handles a wide variety of the firm’s litigation and general counsel matters. With offices throughout the state of California, the Tinnelly Law Group has exclusively represented community associations for the last thirty (30) years. You can reach Kumar at (949) 484-4223 or kumar@tinnellylaw.com. CAI-CV.org




Annual Holiday

Open House & Charity Event Friday, December 6, 2019, 5:30 p.m. Woodhaven Country Club

41-555 Woodhaven Dr. East, Palm Desert (off Washington)

FREE FOR ALL MEMBERS Dinner | Full No-host Bar DJ – Dancing | Ugly Sock Contest

Benefiting The Christmas Store (Please bring a new unwrapped gift for a child age 3-16)

Sign up online at www.cai-cv.org SPONSORSHIPS AVIALABLE


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

Fernando Fregoso (760) 772-3673


GURALNICK & GILLILAND _________________________________________________________________________________________________

• Corporate Counsel •

• Legal Opinions

• Assessment Lien and Foreclosure

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

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





Educational Lunch Program & Mini Trade Show Friday, October 11, 2019

Servant Leadership in Today's Communities


Quorum November, 2019


ROBERT A. FELIX, CMCA, LSM, PCAM, RS President, Verity Property Management & Owner, The Felix Reserve Group

THANKS TO OUR PROGRAM SPONSORS MEMBERSHIP SPONSOR Prendiville Insurance Agency EXHIBITOR BOOTH SPONSORS Alliance Association Bank AMS Paving, Inc. Animal Pest Management Services, Inc. Boral Steel Roofing BRS Roofing Inc. C.L. Sigler & Associates, Inc. Conserve LandCare Dunn-Edwards Corporation First Foundation Bank Flood Response Gardner Outdoor and Pool Remodeling Horizon Lighting Inc. Mission Association Financial Management NPG Asphalt PatioShoppers, Inc. Prendiville Insurance Agency PrimeCo PWLC II Roof Asset Management Roseman Law, APC Securitas Security Services Sustainable Water Solutions Three Phase Electric Vintage Associates, Inc. Western Pacific Roofing







AMS Paving has been providing paving and asphalt maintenance services throughout Southern California for over 38 years. It has been our privilege to serve thousands of homeowner’s, board members and property managers. We attribute our success to each of our clients and to the pursuit of our guiding values of honesty, integrity, and quality in every project we perform. Our core services include asphalt repair and patching, pavement replacement and new paving, overlays, sealcoating and striping, ADA compliance, and asphalt education for managers. AMS Paving, Inc. was founded in 1981 by Bill Hawkins. Today, AMS Paving is not only one of the largest asphalt paving and maintenance companies in Southern California but is also known as one of the premier sealcoat applicators as well. Having completed countless paving projects in the Coachella Valley we understand the local weather and soil issues and how they change the way paving is performed. The success of any venture starts with the people it serves as well as those it employs. Our clients have responded to our commitment to quality by graciously rewarding us with their loyalty and years of repeat business. AMS Paving is proud to offer our clients, at every point of contact, the services of the most professional and knowledgeable staff in the industry. In 2002, Liz Williams, Vice President, was added to the AMS team after 10 years of success in the property management industry. Liz and her husband Bill Hawkins have been the driving force behind AMS Paving’s growth and increased capacity to respond to the needs of our clients. Liz has also been a committed and influential leader in CAI where she has served in various capacities, previously served as a member of the Board of Directors, and has participated in many committees. Additionally, we are active in several CAI Chapters and have been for the last 20 years. We know our business. AMS Paving is proud to be affiliated with CAI-CV as a Platinum Level Corporate Sponsor, and as a CAI Educated Business Partner, we are committed to its success in the attainment of its goal to improve the quality of life for the communities it serves. It has been proven to be a rewarding relationship whose benefits have included and superseded the growth of our business.

Thank you to AMS Paving for their generous support of CAI-CV! 26

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Board Leadership Development Workshop Friday, December 6th, 2019 Woodhaven Country Club 41-555 Woodhaven Dr. East, Palm Desert (off Washington)

CAI CERTIFICATE PROGRAM 8:00 a.m. to 5:00 p.m.

AGENDA & SPEAKERS Registration/Continental Breakfast

Module 1: Governing Documents and Roles & Responsibilities

Guest Speaker: Wayne Guralnick, Esq., Guralnick & Gilliland, LLP

Module 2: Communications, Meetings and Volunteerism

Guest Speakers: Rhonda M. Drews, PCAM, RealManage Daniel Ryan, Esq., McKenzie & Rhody LLP

Module 3: Fundamentals of Financial Management

Guest Speakers: Keith Lavery, PCAM, Associa Desert Resort Management Roxi Bardwell, PCAM, Advanced Reserve Solutions


Module 4: Professional Advisors and Service Providers

Guest Speakers: James McCormick, Jr., Esq., CCAL, Delphi Law Group, LLP, Dan Goodrich, PCAM, GM, Sierra Dawn Estates HOA

Module 5: Association Rules and Conflict Resolution

Guest Speakers: Cang Le, Esq., Angius & Terry LLP Ashley Layton, PCAM, Associa Desert Resort Management

ASK THE ATTORNEY ROUNDTABLE/WINE RECEPTION Hosted by Matt Ober, President CCAL, Partner, Richardson Ober DeNichilo, PC Cost: $95 Members, $140 Nonmembers

Sign Up online at www.cai-cv.org IMMEDIATELY FOLLOWING - FREE Holiday Open House & Charity Event at 5:30 p.m. Woodhaven Country Club - Dinner, DJ, Contests CAI-CV.org






INTRODUCTION Senate Bill 323 (“SB 323”) was recently signed into law. SB 323 makes several substantive modifications to the Civil Code’s provisions governing association elections, effective January 1, 2020. Some of the more significant modifications require associations to amend their election rules to conform to new statutory requirements, limit the types of candidate qualifications an association may adopt, address the only circumstance for elections by acclamation, place limitations on who may serve as an inspector of elections, and bolster the ability of members to overturn an election that is not conducted in accordance with proper procedures.

ninety (90) days prior to an election. Civ. Code § 5105(h). Associations with elections in the first quarter of 2020 should have their legal counsel immediately amend their election rules to comply with the new requirements of SB 323. Any amendments to the election rules beyond that which is specifically required by the new law will require use of the rule change procedure specified in

Retained “Association Election Materials”



Various amendments have been made to Civil Code § 5105 regarding the required content of an association’s election rules. The information below summarizes the more significant amendments and their impacts.

Civil Code § 4360 (e.g., general notice of the proposed amendments to the election rules will need to be provided at least 28 days prior to the board’s vote to adopt the amended election rules).

No Changes to Election Rules within 90 Days of an Election

Voting Rights May Not Be Suspended

Any changes to an association’s election rules may not be made less than

An association’s election rules must now “prohibit the denial of a ballot to a

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member for any reason other than not being a member at the time when ballots are distributed.” Civ. Code § 5105(g)(1). This means that an association may no longer suspend any member’s voting rights. Any member is entitled to vote, regardless of whether that member is delinquent in the payment of assessments or is in violation of the governing documents.

The election rules must be amended to require retention of additional election materials, including both a candidate registration list and a voter list. Civ. Code § 5105(a) (7). The voter list must include the name, voting power, and either the physical address of the voter’s home, the parcel number, or both. The mailing address must also be listed on the voter list if different from the physical address within the association or if only the parcel number is used. The association is required to permit members to verify the accuracy of their individual information on both the candidate list and voter list at least thirty (30) days before the ballots are distributed, and any reported errors must be corrected within two (2) business days by the inspector of elections.

FEATURE CANDIDATE QUALIFICATIONS SB 323 limits the scope of candidate qualifications that an association may adopt. The information below discusses each of the four (4) candidate qualifications that an association may adopt through its bylaws or election rules, as well as the mandatory candidate qualification that an association must adopt.

Current in the Payment of Assessments An association may require a nominee for a board seat to be current in the payment of regular and special assessments. However, a nominee’s failure to pay fines, late charges, interest, and collection fees and costs may not be used as a basis for disqualification, nor may a nominee be disqualified if he or she has entered into a payment plan with the association or if he or she has not been provided an opportunity to participate in internal dispute resolution (IDR) with the association. Civ. Code § 5105(c)-(d). If not being current in the payment of assessments is adopted as a candidate qualification, the association is legally required to impose that same requirement on directors. Civ. Code § 5105(c)(1). Director qualifications must be contained either in the association’s articles of incorporation or bylaws to be enforceable (e.g., for a failure to meet the qualification to be used as a basis for the remaining board members to declare the unqualified director’s seat vacant). Corp. Code § 7221(b). Accordingly, if an association chooses to require candidates for the board to be current in the payment of assessments, the association’s bylaws will need to have the same requirement for directors. Those associations that do not already have such a requirement in their bylaws will need to amend their bylaws in order to establish the necessary director qualification.

No Joint Ownership Interest An association may disqualify a person from nomination as a candidate

if the person, if elected, would be serving on the board at the same time as another person who holds a joint ownership interest in the same lot or unit and the other person is either properly nominated for the current election or is an incumbent director. Civ. Code § 5105(c) (2).

Member for at Least One (1) Year An association may disqualify a nominee if that person has been a member of the association for less than one (1) year. Civ. Code § 5105(c)(3).

Past Criminal Convictions An association may disqualify a nominee if that person discloses, or if the association is aware or becomes aware of, a past criminal conviction that would, if the person was elected, either prevent the association from purchasing the fidelity bond coverage required by Civil Code § 5806 or terminate the association’s existing fidelity bond coverage. Unfortunately, HOA insurance carriers have provided very little guidance on what types of criminal convictions would threaten coverage, as most policies use the broad term “dishonest acts” as a basis for policy cancellation.

IDR Before Disqualification Regardless of the basis for disqualifying a person from nomination, an association may not disqualify the person “if the person has not been provided an opportunity to engage in [IDR]” with the association. Civ. Code § 5105(e).

ELECTIONS BY ACCLAMATION Although there is disagreement in the legal community, our firm has always taken the position that the law does not permit uncontested elections to be carried out by acclamation (e.g., the association must still send out ballots and conduct an election even if the election is uncontested). Our position is based on the language of Civil Code § 5100 that requires the use of secret


ballots for director elections “notwithstanding any other law or provision of Mandatory Qualification: the governing documents.” Accordingly, Members Only any bylaw provisions purCivil Code § 5105(b) porting to permit elections by now requires an asso"...NONacclamation are superseded ciation to disqualify a by the foregoing language of OWNERS ARE person from a nomithe Civil Code. nation as a candidate NO LONGER SB 323 has amended if the person is not a PERMITTED TO Section 5100 to further member of the assoSERVE ON THE address this issue. Section ciation (not an owner 5100 now allows for elections of a lot or unit) at the BOARD..." by acclamation, but only for time of nomination. associations that have 6,000 This means that nonor more units. Civ. Code § 5100(g). owners are no longer permitted to serve This is a clear indication of the on the board, regardless of any contrary Legislature’s intent to have associations provisions contained in the association’s smaller than 6,000 units conduct elecCC&Rs or Bylaws. tions and send out ballots even if the election is uncontested.





FEATURE prohibits any person, business entity, or subdivision of a business entity from serving as inspector of elections if that person, business entity, or subdivision of a business entity is “under contract to the association for any compensable service other than serving as inspector of elections.” While the managing agent or management company may be authorized to prepare and send balloting materials, the actual inspector of elections will either need to be a volunteer association member or a third-party inspector of election company. Attention will need to be paid in working with the inspector to ensure that any role to be played by management in connection with the election process is limited to only that which is allowed under the new state of the law.


Above is a ‘Director Election Timeline’ that illustrates the pre-election notice requirements and their timing within the election process. The Timeline is also available for download at: tinnellylaw.com/electiontimeline.pdf 30

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INSPECTORS OF ELECTIONS Some associations previously opted to have their managing agent or management company serve as inspector of elections, based upon prior language in the Civil Code allowing for such an arrangement to be authorized under the election rules. Civil Code § 5110(b) now

Civil Code § 5145 has been amended to bolster a member’s ability to overturn an election that was not conducted in accordance with all required procedures. If a member files an election challenge and establishes that the election procedures were not followed, the court is now required to invalidate the results of the election unless the association establishes, by a preponderance of the evidence, that the association’s noncompliance did not affect the election results. Additionally, a member who files a successful election challenge in small claims court is now entitled to recover his or her “court costs and reasonable attorney’s fees incurred for consulting an attorney” in connection with the election challenge. Civ. Code § 5145(b).

Welcome Aboard PRE-ELECTION NOTICES New pre-election notice requirements effectively require an association to start its election planning approximately four (4) months prior to the election date. These notice requirements pertain to notice of nominating procedures, notice of the candidate list, and various other statements that must be provided to the membership before ballots are sent.

SUMMARY & RECOMMENDATIONS The proponents of SB 323 assert that incumbent boards have undermined the democratic function of associations by, among other things, improperly disqualifying members from running for the board and limiting members’ voting rights. SB 323 is intended to provide a ‘fix’ to these and other problems by removing much of the discretion associations previously had to develop voting rules and procedures. Regardless of whether the ‘fix’ was needed, some of the statutory changes are helpful in emphasizing the significance of association elections and the important role they play in the continued success of the community. Associations that have not already begun the process of amending their election rules to accommodate the changes imposed by SB 323 should seek immediate assistance from their legal counsel. Steven J. Tinnelly, Esq. is the Managing Partner of Tinnelly Law Group. Mr. Tinnelly is very active within the community association industry and devotes a substantial amount of time to educating homeowners and industry professionals about the legal issues affecting California community associations. He currently serves as President-Elect for the Board of Directors of the Orange County chapter of the Community Associations Institute (CAI). He has served on various CAI chapter committees, including the publications, education committees and legislative support committees, and has been a featured speaker at countless industry events and educational seminars.

Christopher Cellini By Susan Browne Rosenberg, CIH

Welcome Aboard Christopher Cellini, the new Director of Business Development for longtime member, Flood Response. Flood Response Restoration Services is a local, family-owned, independent company that provides emergency restoration services. They are not a franchise, giving them flexibility to respond to the local community’s needs, whether it is for water and flood remediation, sewage problems, mold, or smoke and fire damage. Their Christopher Cellini facilities also include protected vaults for pack-outs and offsite storage for furniture and building contents. Flood Response has been in business in the Coachella Valley since 2002. With approximately 30 employees and over 15 fully stocked trucks, they have the equipment and personnel to handle projects both large and small. Building relationships, being active members of the community and serving with integrity is the foundation of their team members and company. The Flood Response team is comprised of Institute of Inspection, Cleaning and Restoration Certification (IICRC) certified and uniformed professionals. The IICRC is the non-profit certifying body for the cleaning and restoration industry. Flood Response is also a licensed and insured general contractor, ensuring that all work performed will be up to code. They use professional commercial grade equipment and materials that meet or exceed industry standards as well as naturally formulated chemicals to keep your home and your family safe. All equipment is then cleaned and sterilized between jobs. 24/7 coverage allows for immediate expert services to contain damage before it overtakes your home or business. Flood Response offers complete restoration services with expertise and knowledge to ensure your home is safe again and returned to its original condition. Chris is of Italian descent, and originally from Philadelphia, PA. He attended the University of Miami and is a diehard Eagles fan! Chris said he likes to spend time with his family that includes his beautiful wife, Christina, and their two amazing sons, Alec and Chris, Jr. Alec, the youngest, is a junior at Penn State University and Chris, Jr., owns a successful solar company here in the Valley. Christina and Chris now use their parenting skills on their three small dogs. They have been fulltime residents of the Coachella Valley since 2008. Chris can be reached at the Flood Response main number, 760-343-3933 or by email at chris@floodresponse.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 sbriaq@gmail.com. CAI-CV.org







Thursday-Saturday, November 21-23, 2019 CAI-CV Classroom


THE ESSENTIALS OF COMMUNITY ASSOCIATION MANAGEMENT CAI'S M-100 is the industry's premier course for anyone intrested in learning the fundamentals of community association management.

Successful community management starts with the essentials! This comprehensive community association management course provides a practical overview for new managers, an essential review for veteran managers and an advanced course for board members. Business partners who take the M-100 are recognized by managers and board members as understanding how HOAs need to conduct business. Successful completion of the M-100 can be the first step toward earning the CMCA credential, awarded by CAMICB.

M100 TOPICS INCLUDE: • Roles and responsibilities of managers, owners, committees and the board • Management ethics • Developing, implementing and enforcing rules • Organizing and conducting board meetings • Preparing budgets and funding reserves • Assessment collection policies and procedures

• The M-100 is the first step for building a career in professional management. • The M-100 helps association board members better understand their fiduciary duties and the role of management. • The M-100 offers business partners an educational advantage when working with associations. • The M-100 is the official prerequisite for (CAI's) CAMICB's CMCA (Certified Manager of Community Associations) Designation. • The M-100 and CAI's CID Law Course qualify recipients as being "certified" as a manager under California law.

TUITION: CAI member: $459 Nonmember: $559



• Collecting delinquent payments • Financial statements, reporting methods and operations • Evaluating risk management and insurance programs • Implementing maintenance programs • Preparing bid requests and identifying key contract provisions • Recruiting, selecting and managing personnel • Managing sustainable and developing communities


Participants will receive a guide and digital access to bonus readings and materials



2.5 days | Days 1-2: 9:00 a.m. - 5:00 p.m. Day 3: 9:00 a.m. - 12 Noon

Contact the CAI-CV office at (760) 341-0559 for information about scholarships.

Students will have 30 days from the live course to complete an online, multiple-choice examination.

Quorum November, 2019


Volunteers – The Heart of CAI By Holly Smith CMCA, AMS


t was exciting news to hear that our Coachella Valley Chapter is now considered a “VERY LARGE” CAI chapter. As Chair of the Membership Committee, it has been exciting to see the number of new members joining us each month. What a milestone it is for an organization that originally started with five members sitting around a conference table nearly 39 years ago. We have doubled our membership in three short years. Last month alone, we increased by another 30 members and now have over 1,040 active members and affiliates involved. With this growth comes new challenges for our Committees that are responsible for developing educational and networking events for all our members. Each event that is scheduled throughout the calendar year is planned and supported by a CAI-CV committee who serve as part of the Chapter’s volunteer leadership team. Whether it’s the monthly educational lunch program, Manager on the Run or the Annual Awards & Monte Carlo Night, there is an outstanding group of volunteers who plan and execute each event for the benefit of our members. Volunteers are the backbone of our amazing chapter. WE NEED MORE VOLUNTEERS TO SERVE on a CAI-CV committee. For those of you that say, “I don’t have time,” please consider that ALL our volunteers say the same thing. Practically speaking, none of us have time to volunteer. This CID industry is crazy busy for all of us – managers, board members and businesses are all running full speed all year long. BUT, there is a greater good. CAI-CV is elevating the CID industry with innovative educational programs, career development and networking that helps both careers and reaching business goals. Consider making CAI-CV volunteerism part of your job! Joining a CAI-CV committee is the fastest way to build relationships in the CID industry. We know this is true internationally through CAI’s 40,000 members! Hopefully, you already take the time to attend CAI education and events - you

can easily schedule an hour of time once a month to attend a committee meeting, and another hour to help with the committee’s work. With that said, it’s not just about the time, or the act of servitude, it’s about doing something good for the CID industry. Talking from experience, volunteering to be on a committee has provided so many additional opportunities for my career and personal growth. Being on a committee is about making connections with other people, networking, building skills, increasing confidence levels and sometimes (okay, nearly always) having fun. The benefits of committee volunteerism are unmeasurable. Whether you are a new or continuing member there are committees that appeal to a wide range of talents. If you like to write, Quorum would be a great committee. You may be into politics and want to have a hand in supporting or opposing legislation in Sacramento or Washington D.C. so you could join our CLAC Legislative Support Committee. Are you a party planner? We have several special event committees that could use your help, including the Wine Tasting, Golf, Bowling, Oktoberfest and Awards committees. You will find CAI-CV’s volunteer form on the CAI-CV.ORG website. Go ahead and fill it out, listing committees that interest you, and return it to the CAI office. It’s really that simple. We will be forever grateful for your time! Our outstanding volunteers are the heart of our chapter. Our committees need you and CAI needs you! Please, join a committee today! Holly Smith, CMCA, AMS, has over 20 years of property management experience within Southern California and has been in HOA management the last 4 years. She currently works for Powerstone Property Management. She currently serves as the Chair of the Membership and Oktoberfest committees and is active in the Quorum and LSC Committees. Holly can be reached at (760) 797-7797 or by email at hsmith@powerstonepm.com CAI-CV.org





Landscape RFP's What Association Professionals Need to Know By Glenn A. Miller, CGCS


t's fall. There's that first hint of coolness in the air signaling that another hot summer will finally be over and community management professionals are welcoming their board members back to the Coachella Valley for the season. Association Manager (Sally) meets with her board president who says, "Sally, you know the landscaping in the community is looking a little rough. Why don't you prepare a RFP for the landscape maintenance contract so we can send it out for bid." Now, we all know what Sally is really thinking. She has hundreds of items already on her “to do” list and adding a landscape RFP to her ever-expanding workload is NOT at the top of her list.


Quorum November, 2019

HOWEVER, IF SALLY FOLLOWS A FEW SIMPLE STEPS THE LANDSCAPE RFP PROCESS DOESN'T HAVE TO BE INTIMIDATING. HERE ARE SOME BEST PRACTICES THAT WILL HELP YOU: • First, be realistic and specific about the scope-of-work that you want your landscape contractor to perform. Does your property have a lot of grass that requires weekly mowing? Do you have flower beds that need labor intensive work? The more detail specific your RFP is will allow bidding contractors to provide you with the most accurate proposals possible. • Next, review your budget to determine what the association is actually spending each month on landscape maintenance. Be sure to include all those "extras" and "change orders" for tree trimming, irrigation repairs, plant replacement, etc. All these expenses quickly mount up and unless the management professional does this analysis you won't have an accurate picture of what the association is actually spending for its landscape maintenance program.

• Then determine a reasonable number of landscape contractors to bid on your association's contract. Typically, you would invite the existing landscape vendor to bid unless there have been serious issues with their performance. In most cases, you would limit the number of bidding contractors to three qualified contractors so you can easily analyze their proposals and ensure that you're comparing apples-to-apples for your community’s landscape needs. Make sure all the contractors are licensed for the work they are expected to perform. • Require each landscape contractor to provide an up-to-date client/project list, together with a few local references with contact emails and phone numbers. Ask contractors if they already have existing HOA accounts that have landscaping similar to your association? Sometime a contractor who has experience in maintaining desertscape may not be the best choice for an association that has a more traditional landscape palette. You might also request photo submittals from the contractor's HOA clients. Photos from other HOA communities can be very helpful. • Finally, when you're reviewing the bids, make sure the contractors have tailored their proposals in direct response to the requirements set forth in your RFP. BEWARE of the proposal that is substantially lower than the majority of other bids received. The familiar adage, “too good to be true” is often the case with low bids. The last thing your association wants are add-ons like change orders and additional invoices that dramatically change the contracted price for service. One thing is certain in the landscape business; prices are going up. With minimum wages and fixed costs increasing each year, you can expect contracts to go up three to seven percent. If you’re not seeing these increases in your landscape contract, ask for an explanation. The last thing you want is for a landscaper to reduce service to save money without your knowledge. Whether you are a manager or board member, hiring qualified licensed contractors will help avoid unwanted problems down the road and help preserve and enhance home values in your community. Glenn A. Miller, CGCS, is Vice President of Operations for Southwest Landscape & Maintenance, LLC, United Landscape, located in Indio. Glenn is also the District Director for Senator Jeff Stone and serves on the City Council for the City of Indio. He can be reached at (760) 590-8544 or by email at Glenn@SWLandscape.net.

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Why Your HOA Needs an HOA Specialized Insurance Agent By Mike Rey


ver my 33 years of service as an HOA insurance agent, I have been asked many different questions on how to properly insure an HOA. I’m always glad to get that question because there are many factors involved in insuring an HOA that the average insurance agent or broker may not be knowledgeable about. My first words of advice to any board or manager is to make sure you only consider quotes from HOA expert insurers. The basic and first rules to be aware of are the requirements defined in the Governing Documents and CC&R’s. If your insurance agent is not referring to or asking to review the “insurance section” of the CC&R’s, they may be neglecting vital insurance information necessary to properly insure the association common area. This section describes how the property is to be insured. This section also instructs the insurance agent about coverage on liability and Director’s & Officers (D&O) coverage. Without review or reference to this section of the CC&R’s, the proper and legal coverage for protecting the HOA could be severely underinsured. The Davis-Sterling Act has clear and specific laws and regulations regarding proper insurance for HOA’s. Civil Code 5805 of the Davis-Stirling Act, states that liability insurance limits for associations with fewer than 100 residential units must have a minimum liability limit of $2 million per occurrence coverage, while associations with greater than 100


Quorum November, 2019

"Civil Code 5800 states there must be a minimum coverage of $500,000 for associations with fewer than 100 residential units and $1 million coverage for associations with more than 100 units." residential units needs to be insured at a minimum of $3 million per occurrence. This ensures the association has sufficient liability coverage should the association enter into a legal battle with a resident or guest where the association needs sufficient defense coverage. In this same section, there are specific laws regarding Director’s & Officers (D&O) coverage as well. Civil Code 5800 states there must be a minimum coverage of $500,000 for associations with fewer than 100 residential units and $1 million coverage for associations with more than 100 units. All these specific coverage amounts are necessary to protect the association as a whole should there be a significant claim made against the association. These specific limits have been deemed significant enough to avoid additional assessments to the community members from liability due to bodily injury or property damage, i.e Ruoff v Harbor Creek HOA. A significant requirement described in the CC&R’s is whether the association is responsible to insure the interior of the units as part of the “common area” otherwise known as “walls-in” coverage. The insurance section of the CC&R’s

Time Honored may have specific wording regarding this information. This section may also have wording on specific interior feature exclusions such as flooring, appliances, walls, cabinetry, ceilings and countertops - also known as “bare-wall.” In either case, the insurance agent insuring individual units’ HO-6 policy needs to be aware of this information in order to properly insure a unit. Individual residents' agents need to call the agent/broker insuring the community to find out which type of interior feature coverage the association has in place. Whether “walls-in” or “bare-walls,” you could be double insured if the community has “walls-in” and you are paying for an HO-6 policy with increased limits for building coverage or underinsured if your community has a “bare-walls” policy and you do not have any interior building coverage. These explanations previously discussed are the reasons obtaining an HOA knowledgeable insurance agent is necessary. When insuring other businesses as an insurance agent, you are protecting the owner of the single entity corporation from loss. In the case of a community association, insurance agents are responsible for ensuring all the members of the community are protected as a whole from lack of sufficient coverage but also from “special assessments.” That nasty term no homeowner wants to hear! There are only a small number of HOA specialized insurance agents in the state of

"There are only a small number of HOA specialized insurance agents in the state of California so be sure that your insurance agent is a member of the Community Association Institute (CAI)." California so be sure that your insurance agent is a member of the Community Association Institute (CAI). With this affiliation, you as a community association, can be assured your insurance agent has knowledge and education about the specific requirements necessary to properly protect your community. Be sure to check with your condominium unit policy, HO-6 policy, insurance agent and find out if they contacted the community association agent/broker to get the proper determination of coverage necessary to protect you as a homeowner. I was recently contacted by a board member where the residential unit agent had not contacted our office to find out the proper interior coverage and the board member had been underinsured for many years. This could have been devastating for the board member had they had a loss to their unit. Mike Rey is with Rey Insurance Services a Farmers® Insurance Agency. He can be reached at 949-487-9661 or by email at Mike@ReyInsuranceServices.com.

Dionne Petitpas

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By Grace Paluck, CamEx, CCAM Dionne Petitpas is the director of growth, development and marketing for Three Phase Electric, an electrical and lighting services contractor, and for their sister company, COMMON SENSE, an IoT software platform company that focuses on helping HOAs become “smart” communities. Dionne has been involved with Dionne Petitpas the Coachella Valley chapter of CAI for nine years and has served on numerous committees including the Business Partner Committee working on the Summer Sizzler, the Wine Tasting Committee, the former Country Western Night Committee and the Quorum Committee, where she served as chair and editor for two years. Dionne has a Bachelor of Arts Degree from California State University, Long Beach. The bulk of her career has been in broadcasting, working for nationally syndicated companies. She transitioned into the CID industry ten years ago to cut down on travel and spend more time with her family. Three Phase was a perfect match for Dionne. She said, “Three Phase has been very gracious and supportive of me personally and professionally. No one can ask for more than that from their employer. I thoroughly enjoy representing such an outstanding service-oriented company.” When asked about her mentors, Dionne immediately said, “I have been fortunate to have many amazing mentors but at the top of the list is my Aunt Gladys who always inspired me and continues to influence my life. She was very successful as the first woman professor at Harvard but always remained the kindest most loving person I’ve even known.” Family is very important to Dionne. Along with her father, sister and nephews, Joshua and Jacob, she also treasures her cats, Punkin’ and Pinch. She said she is fortunate to have many dear friends that she includes in her extended family. Her favorite sayings are: “treat others as you wish to be treated,” “don't just be nice, be kind to other people,” and, “be the change you want to see in the world.” Dionne, on behalf of CAI-CV, thanks for being such an important part of the Chapter and we hope you will rejoin the Quorum Committee soon! Grace Paluck is the Division Executive Vice President for The Management Trust. She can be reached at (760) 776-5100 or by email at grace.paluck@managementtrust.com. CAI-CV.org





Making New Laws in California – The Legislative Process By Louie Brown, Esq.


lmost everyone can recall learning about California’s legislative process in their eighth grade civics class or by watching School House Rock’s “I’m Just a Bill.” While your civics class likely did a good job of laying out the basics, as with most things in life, the legislative process is a bit more complicated. The California Legislature can pass bills, constitutional amendments, and resolutions, but the main focus of lobbying efforts in the Capitol is on bills. On average, 2,000 bills are introduced each legislative session. This year was a bumper year with a staggering 2,576 bills introduced. Of those introduced, 694 bills were “spot bills” meaning there are no real details included in the language of the bill. Specifics can be added months after the introduction of the bill. Only legislators of the Assembly or the Senate can author bills. California has a bicameral legislature, so bills must be passed by both houses of the legislature, and then acted upon by the Governor to become law. Once a bill is introduced, it must be referred to a committee for a hearing. As a general rule, a bill is referred to the committee or committees that have jurisdiction over the provisions of the bill. For example, many bills impacting CAI members are heard in the Assembly and Senate Housing committees. If a bill has a fiscal impact to the state it must also be heard by the fiscal committees in the Assembly and Senate. Once a bill is set for hearing, opposition and supporters of the bill submit position letters and a committee analysis is drafted describing the bill and


Quorum November, 2019

the amendments. If agreement cannot be reached, the bill is referred to a twohouse conference committee to resolve differences. If a compromise is reached, the bill is returned to both houses for a vote. If both houses approve a bill, it then goes to the Governor. The Governor has three choices: 1) sign the bill into law; 2) allow it to become law without his or her signature; 3) or veto it. A Governor's veto can be overridden by a two-thirds vote in both houses. Most bills go into effect on the first day of January of the next year, however urgency measures requiring a two-thirds vote of each house, take effect immediately after they are signed or allowed to become law without signature. Throughout this process there are bumps in the road, intense negotiations, trade-offs made, and games that can be played, such as a “gut and amend” which occurs when the author of a bill

its impacts. The bill is then heard in committee which provides the author the opportunity to present the merits of the bill, for supporters and opposition to state their positions, and for legislators to ask questions and debate the issue. The bill may also be amended in committee to address any concerns. Once the bill is fully debated, the committee members vote. If the bill receives a majority of votes, it moves on to the next committee or the floor of the house it is located in. If it does not receive enough votes, the bill is held in committee and does not proceed. "Most bills go into effect on the first day Once the bill clears the of January of the next year, however committee process, it heads urgency measures requiring a two-thirds to the floor. Most bills require vote of each house, take effect immea majority vote of the members diately after they are signed or allowed (21 votes in the Senate and 41 votes in the Assembly), while to become law without signature." urgency measures and appropriation bills require a two-thirds vote completely removes the contents of one (27 in the Senate, 54 in the Assembly.) bill and inserts new language, creating In California, the Democrats have a an entirely new bill. For these reasons “supermajority” in each house. This bills must be watched closely even if you means they do not need Republican had previously thought a bill was “dead” votes to pass either a majority vote for the year. bill or a two-thirds vote bill. This has To many the legislative process in made stopping a bad bill on either the California seems opaque— and it is. Assembly or Senate floor increasingly However, once you learn the basics of difficult and as such, more work is done the process, and understand the tricks in committees to either have a bill held and strategies that can be used along or have it amended to lessen negative the way, you can begin using it to your impacts. advantage to shape policy and ensure Once a bill passes out of the first house, your interests are protected. it is sent to the second house where the committee process begins again. If a Louie Brown, Esq. is CAI’s CLAC bill is amended in the second house, it Legislative Advocate and a partner in must go back to the house of origin for the law firm of Kahn, Soares & Conway. concurrence, which is agreement on He can be reached at (916) 233-9602 or by email at advocate@caiclac.com.

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Quorum November, 2019



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Quorum November, 2019


Common Courtesy: How to Promote Civility in Community Associations By Donna DiMaggio Berger, Esq., CCAL


aised voices, reddened faces, and angry gestures. You might think you are watching a congressional hearing on C-SPAN, but you are at your community’s board meeting. The erosion of civility in our society has begun to manifest itself in private residential communities. This comes in many forms—from rudeness and disruptive behavior at meetings to more dangerous and escalating actions. While it is impossible to legislate civility, the proximity of a multifamily dwelling or a community with shared amenities heightens the impact of these behaviors and creates myriad legal issues and operational challenges for volunteer boards and their managers. Perhaps the most difficult legal issue is the determination of when a lack of civility requires action in the form of regulation, enforcement or, in egregious circumstances, additional security measures. Boards find the quality of life and the ability to conduct business diminished as limited time and resources are increasingly devoted to the personal interactions between residents and staff, instead of the operation of the community. It is difficult to attract and retain good staff and contractors and, most importantly, no one will want to serve on the board or a committee.

Given the obligation of the association to protect the person and property of the residents, there is a point where regulatory and enforcement action is required.

1. Run a businesslike meeting. The more organized and businesslike the board members are, the less opportunity for disruption.

2. Have your board members set the standard for civility. Some communities even require board members to sign and adhere to a code of conduct to set the proper example and tone for the community. Most associations have bylaws that are decades old. In the last few years, I have updated countless sets of documents to provide operational and communication standards for directors and owners.

3. Adopt and enforce board rules regarding the manner in which residents treat each other, the staff, and the contractors on the property. While this is subjective, most of us recognize truly unacceptable behavior when we see it.

4. Operate with transparency and solicit input from the community. Some communities fracture because of a sense of secrecy and some fracture because of generational differences in the approach to maintenance and improvement of facilities. It is unlikely that every owner will agree that certain projects are necessary or that reserves should be fully funded yearly, but boards are elected to make tough decisions, not just popular ones. Boards that address these issues and send a message that uncivil behavior is not tolerated will do a service to their communities. Unlike that hearing on C-SPAN that you can turn off, discord in a community association cannot be stopped at your front door. Community association residents should realize that “living together” requires a level of civility and respect that we hope will flow upward at some point. Donna DiMaggio Berger is a board-certified specialist in condominium and planned development law, a shareholder with the law firm of Becker, and serves as the executive director of the Community Association Leadership Lobby in Florida. She is also a fellow in CAI’s College of Community Association Lawyers. Article originally appeared on Sun-Sentinel.com. Reprinted with permission. Copyright © 2019 Community Associations Institute, All rights reserved. CAI-CV.org





Are You Getting the Right Quality, Price and Useful Life out of Your Maintenance Projects? By Chris Sigler, B.S.C.E., C.D.T.


eserve studies are valuable tools in guiding an association through proper maintenance of their facilities. They inform boards and management staff as to what components at the complex are nearing the end of their useful life and when building components are in need of repair and/or replacement, or ongoing protective maintenance. They chart each year’s needs, for the sake of developing a manageable and healthy association budget and reserve contributions. When a scheduled repair, replacement or maintenance need arises or is needed, a board and its community managers assume that it’s “time” because the reserve study says so. But is it really? How do you truly know? Has anyone tested the “if it ain’t broke, don’t fix it” concept? Since most association leaders are not trained in building sciences and material performance, they have to trust what the study says. So, boards and managers many times call upon their trusted contractors and vendors to provide bids for the scheduled work. When multiple bids are required by CC&R mandate, many times a few contractors are called out to price the work.

HERE’S AN EXAMPLE OF ONE SCENARIO THAT COULD PLAY OUT: Let’s say that your association’s paint cycle has arrived according to the schedule, and so you call out your best three painting contractors and ask for a complex-wide painting bid. When bids are received, they are wildly different in form and price, and confusing. Paint seems so simple, right? Why would the bids have such disparity?


Quorum November, 2019

Prior to presenting the bids to the board, the manager does a “deep dive” into the bids, and finds out that none of them are using the same paint products, two of the bids say that they are “backrolling” (and they’re not sure what that is, in some cases) and the other bid does not mention backrolling at all. One bid says that one coat of paint is good enough and the other two bids include two coats. On top of that, the warranties are not clear and don’t seem to match. So confusing. Which one is the right bid to choose? We have all learned that the “low bid” isn’t necessarily the “best bid,” so how do I know which contractor is “right”? As part of their fiduciary duties as a volunteer board members, and with all that professional community managers are tasked with, most association leaders are not trained to tackle the technical details of these types of projects, but they do the best they can and things have turned out fine historically. But it takes a lot of time and can be a lot of work, in some cases. So, what is the most effective way to avoid problems when facing a maintenance project? Board members and managers that are experienced in these types of matters and have the time and wherewithal to carry them out is certainly done regularly but can be timeconsuming, especially if “surprises” occur along the way. Thankfully, there are other effective, proven and successful methods to carry out maintenance projects – including outsourcing the project work to an independent consultant such as a construction manager, an architect or engineer, to guide you through the process and separate you from risk. Regardless of which method of project delivery is chosen, a few simple steps are vital to creating a successful project from the very beginning:

GETTING TO THE STARTING LINE – THE PRE-CONSTRUCTION STEPS Planning and communication of that plan to the membership and residents is paramount. In order to set up a project for success, consider the following steps: Step 1: Either form a committee of able volunteers to prepare the planning process, or engage an independent consultant. If a consultant is being considered, it should be a construction professional such as a construction manager, an architect or an engineer, and NOT a contractor that would have a stake in the work. In either case, there should be a “project leader” so to speak, who will be able to write a clear scope of work and RFP (Request for Proposal) for the work, and assist the association in determining the priorities for the project. Step 2: Prepare the scope of work and solicit competitive bids - this should be prepared and authored by either your

MAINTENANCE construction consultant or committee member(s), in collaboration with the board, management. This is the body of work that the bidding contractors will utilize to price out the work, and allows them to bid more confidently, knowing that they are bidding “apples to apples” as is often said, on a “level playing field.” This is a very key element to keeping project costs down! Step 3: Receive and analyze bids and create a complete project budget – once bids have been received, a thorough review must be performed of all bids and data collected. The consultant or committee must analyze all bid submittals inconsistencies, accuracy, completeness, and substantiating information provided by the bidding contractors. Once this has been completed, the consultant or committee should prepare a complete project budget that includes, all of the various project costs that might be incurred.


THE CONSTRUCTION PHASE It has been our experience that since the work is being done so closely to the homes of our community’s residents in most cases, that this communication of the project plan to the residents is the key. There is a saying: “a homeowner who is well-informed is a much less stressed homeowner!” This important communication is usually a collaborative effort of management and the board, along with their consultant, if one is involved. If there is a consultant in charge, he/ she should also perform quality control inspections, budget and schedule compliance monitoring, documentation of work in progress, contractor payment application and mechanics lien release processing and the central point of information and updates regarding the work to the board and management, through to the final completion, punch list, and cleanup. Projects are a “team sport.” There are options for associations to separate themselves from risk that can be pursued using independent construction consultants, or projects can lead from within the membership and management. Regardless, with proper leadership, any project – small or large – can be a satisfying and rewarding process, benefiting the entire community. Chris Sigler, B.S.C.E., CDT is the founder and President/CEO of C.L. Sigler & Associates, Inc. He brings 30 years of experience in the engineering and construction industry. Chris holds a BS in Civil Engineering from Santa Clara University. He can be reached at (760) 469-3048 or by email at chris@siglercm.com.





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WHEN: Friday, November 1, 2019, 8:30 a.m. W HERE: CAI-CV Classroom, Palm Desert

WHEN: Friday, December 6, 2019, 8:30 a.m. – 5:00 p.m. W HERE: Woodhaven Country Club, Palm Desert

CAI-CV’s Board Member Workshop (BMW)

CAI’s Holiday Open House & Charity Event

(for board members)

(for all members)

WHEN: Tuesday, November 12, 2019, 5:30 p.m. W HERE: CAI-CV Classroom, Palm Desert

WHEN: Friday, December 6, 2019, 5:30 p.m. W HERE: Woodhaven Country Club, Palm Desert

CAI-CV’s Legislative Update & Mini Trade Show

CAI-CV’s Manager on the Run (MOTR)

(for all members)

(for managers)

WHEN: Friday, November 15, 2019, 11:15 a.m. – 1:30 p.m. W HERE: Palm Valley Country Club, Palm Desert

WHEN: Friday, December 6, 2019, 8:30 a.m. W HERE: CAI-CV Classroom, Palm Desert

NEW-CAI’s Educational Lunch Program & Mini Trade Show – Earthquake Preparedness (for all members)

WHEN: Friday, December 13, 2019, 11:15 a.m. – 1:30 p.m. W HERE: Palm Valley Country Club, Palm Desert CAI’s Annual Awards & Monte Carlo Night – ATLANTIS (for all members)

WHEN: Friday, January 17, 2020, 5:30 p.m. W HERE: Omni Rancho Las Palmas Resort & Spa Rancho Mirage

CAI’s M-100 – Essentials of Community Management (for all members)

WHEN: Thursday – Saturday, November 21-23, 2019 W HERE: CAI-CV Classroom, Palm Desert


AMS Paving, Inc. Asphalt MD's Associa Desert Resort Management Bissell Designs Studios Inc. BRS Roofing Inc. Cartwright Termite & Pest Control Conserve LandCare Fiore Racobs & Powers, A PLC NPG Asphalt Pacific Western Bank Prendiville Insurance Agency Roof Asset Management Sign-A-Rama Sunshine Landscape Vantage Point Construction, Inc. Western Pacific Roofing


Allied Universal AMS Connect Automation Pride Diversified Asphalt Products EmpireWorks Reconstruction and Painting Epsten Grinnell & Howell, APC Flood Response Green Bryant & French, LLP O'Connell Landscape Maintenance Pro Landscaping, Inc. PWLC II, Inc. Sherwin-Williams Paint Company Vintage Associates, Inc.

SILVER________ Advanced Reserve Solutions Alliance Association Bank Animal Pest Management Services, Inc. Ben's Asphalt & Seal Coating Dunn-Edwards Corporation Flanders Painting Frazier Pest Control, Inc. Horizon Lighting Inc. Mutual of Omaha Bank/ CondoCerts Nissho of California, Inc. Patrol Masters, Inc. Powerful Pest Management Roseman Law, APC SCT Reserve Consultants, Inc. Seacoast Commerce Bank Securitas Security Services, USA, Inc. Sustainable Water Solutions Three Phase Electric Tinnelly Law Group

BRONZE______ Adams Stirling. PLC Alan Smith Pool Plastering Albert Management Inc. A-Rising Builders Brabo & Carlsen, LLP C. L. Sigler & Associates Cooper Coatings INC Delphi Law Group, LLP DSI Security Services First Foundation Bank FirstService Residential Guralnick & Gilliland, LLP

LaBarre/Oksnee Insurance Agency, Inc. Liftmaster PatioShoppers, Inc. Powerstone Property Management S. B. S. Lien Services Servpro of Palm Desert Shetler Security Services SunTech Consulting and Roofing The Management Trust Union Bank United Paving Co. Vista Paint Corporation


Quorum Magazine is printed at the CAI-CV Office on a Xerox Versant 180 Press. Discounted printing is now available to CAI members. Call Bissell Design Studios, Inc. at (714) 293-3749 or the CAI-CV office for more information, (760) 341-0559.

Profile for CAI-Coachella Valley Chapter

Quorum November 2019  

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